Marc Benioff, chief executive officer of Salesforce, speaks during the World Economic Forum on January 18, 2024 in Davos, Switzerland.
Halil Sagarkaya | Anatolia | Getty Images
Salesforce Shares rose 9% on Tuesday after the company’s fiscal third-quarter earnings report showed revenue and fiscal fourth-quarter guidance that beat analysts’ expectations.
Here’s how the company did compared to what Wall Street was expecting, based on LSEG’s survey of analysts:
- Earnings per share: $2.41 adjusted vs $2.44 expected
- Income: $9.44 billion vs $9.34 billion expected
The company’s revenue rose 8% year-on-year in the fiscal third quarter ended October 31. Its net income was $1.5 billion in the quarter, up 25% from $1.2 billion a year ago.
Salesforce said it expects fiscal fourth-quarter sales between $9.90 billion and $10.10 billion. Analysts had estimated fourth-quarter sales of $10.05 billion.
The company said it expects earnings per share of between $2.57 and $2.62 for the fourth quarter, compared with analysts’ expectations of $2.65.
Salesforce raised the low end of its revenue guidance, expecting a range of $37.8 billion to $38 billion in its 2025 fiscal year. That was a slight increase to $38 billion from $37.7 billion previously. The new range puts the midpoint for Salesforce’s fiscal 2025 revenue guidance at $37.9 billion, ahead of analysts’ expectations of $37.86 billion.
“We delivered another quarter of exceptional financial performance across revenue, margin, cash flow and CRPOs,” Salesforce CEO Marc Benioff said in a statement. “Agentforce, our complete AI system for enterprises built on the Salesforce platform, is at the heart of an incredible transformation.”
On a call with analysts, Benioff boasted about Salesforce’s recent artificial intelligence push, including the company’s AI-powered chatbots called AgentForce, which investors have been closely following. supervision For growth. A so-called example is Salesforce’s AgentForce product AI agent technology. Several companies have said that these advanced chatbots represent the next logical step from ChatGPT and other related tools powered by larger language models.
“We’re also offering these incredible AgentForce capabilities,” Benioff said. “This is a bold leap into the future of work, where AI agents are allowed to join humans to transform all of our customer interactions.”
Benioff revealed that he ruptured his Achilles tendon on a recent birthday scuba-diving trip to Atoll Fakarava in French Polynesia. Benioff expressed disappointment that the hospital that treated him could not schedule his follow-up appointments using AI agents.
“It’s a message to our customers, how are you going to give some of your people a break, let them get back to their strategic work, let them focus on what’s really important,” Benioff said.
The company in August announced Amy Weaver will step down from her role as chief financial officer but will remain in the position until the company appoints a successor, who will then become a consultant. That same month, activist investor Starboard Valued Revealed It increased its position in Salesforce by roughly 40% in the second quarter after issuing a letter earlier in the year that said Salesforce was continuing to move “in the right direction” toward improving its dividend.
The starboard value is released a Presentation It noted that Salesforce “may continue to become more efficient and more profitable” in October.
watch: Bespoke’s Paul Hickey says Salesforce is short-term overbought
