Salesforce.com Inc. (NYSE: CRM) said on Thursday that its full-year revenue topped £14 billion for the first time. The company also published its fourth-quarter earnings report that beat Wall Street estimates.
Salesforce shares slid roughly 5% in extended trading on Thursday to trade at £157.90 per share versus £89.21 per share in March 2020, when COVID-19 was at its peak. Here’s what you need to know about the different types of stock investments.
Salesforce Q4 results versus analysts’ estimates
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Salesforce said that it earned £191.63 million in the fourth quarter that translates to 20.10 pence per share. In the comparable quarter of last year, it had reported £178 million of loss instead. On an adjusted basis, the cloud-based software firm earned 75 pence per share.
As per Salesforce, its revenue in Q4 jumped to £4.18 billion versus the year-ago figure of £3.48 billion.
According to FactSet, experts had forecast the company to post £4.08 billion of revenue in the recent quarter. Their estimate for adjusted per-share earnings stood at a lower 53.83 pence. In the prior quarter (Q3), Salesforce had recorded £800 million of net income.
For the current financial year, CEO Marc Benioff now has a target of up to £18.50 billion in revenue. The company expects its adjusted earnings per share to fall in the range of £2.43 to £2.45. Analysts, on the other hand, are calling for £18.24 billion of revenue and £2.50 of adjusted earnings for Salesforce in fiscal 2021. Benioff said on Thursday:
“We never could have predicted a year ago what was in store, which makes me incredibly proud of how well we pivoted our company to adapt to this pandemic world.”
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Salesforce’s guidance for the fiscal first quarter
The San Francisco-based company also gave its guidance for the fiscal first quarter on Thursday. Salesforce anticipates up to £4.22 billion of sales in Q1 and up to 63.88 pence per share of adjusted EPS, versus £4.11 billion of revenue and 53.83 pence of earnings per share expected.
Late last year, Salesforce said it will acquire Slack (workplace software company) for £19.88 billion in cash and stock.
Salesforce performed largely upbeat in the stock market last year with an annual gain of close to 35%. At the time of writing, the NYSE-listed firm has a market cap of £152.21 billion and a price to earnings ratio of 60.37.