Salesforce (CRM) Revenue Q1 2023

Salesforce shares rose 7% in expanded trading on Tuesday after the software maker for companies reported first-quarter financial results that exceeded analysts̵[ads1]7; expectations and lifted guidance for full-year earnings.

This is how the company did it:

• Earnings: 98 cents per share, adjusted, against 94 cents per share as expected by analysts, according to Refinitiv.
• Revenue: $ 7.41 billion, compared to $ 7.38 billion as expected by analysts, according to Refinitiv.

Salesforce’s revenue rose 24% year-on-year in the quarter, which ended April 30, according to a statement. Net income fell 94% to $ 28 million.

Salesforce said Service Cloud’s revenue handling customer service requests generated $ 1.76 billion in revenue, up nearly 17%. Revenue from the core product Sales Cloud for managing business opportunities contributed $ 1.63 billion, an increase of approx. 18%.

During the quarter, Salesforce announced that the Sales Cloud, Service Cloud and Marketing Cloud integrations for Slack were launched in beta. Salesforce acquired Slack for $ 27.1 billion in July. The company also announced the launch of Safety Cloud for organizing personal events during the quarter, and its legal name changed to Salesforce Inc. from Salesforce.com Inc. Salesforce was founded in 1999, amid dot-com mania.

In early March, after Russia invaded Ukraine, Salesforce said it was beginning to end relationships with customers it has accumulated in Russia through dealers and other channels.

Salesforce said it had $ 13.64 billion in unearned revenue, which comes primarily from subscription billing. The figure was slightly below the StreetAccount consensus of $ 13.76 billion.

In terms of guidance, Salesforce said it sees second-quarter financial earnings of $ 1.01 to $ 1.02 per share on an adjusted basis and earnings from $ 7.69 billion to $ 7.70 billion. Analysts asked by Refinitiv had expected $ 1.14 in adjusted earnings per share of $ 7.77 billion in turnover.

Salesforce lowered its revenue guidance for the full fiscal year 2023, while increasing its view of earnings. It now sees $ 4.74 to $ 4.76 per share in adjusted earnings and $ 31.7 billion to $ 31.8 billion in revenue. Analysts asked by Refinitiv had expected $ 4.65 in adjusted earnings per share and $ 32.06 billion in revenue. Previously, Salesforce had expected adjusted earnings of $ 4.62 to $ 4.64 per share of $ 32.0 billion to $ 32.1 billion in full-year revenue.

Despite the movement after working hours, Salesforce shares have fallen around 36% since the beginning of the year, while the broader S&P 500 index has fallen 13% in the same period.

Leaders will discuss the results with analysts at a conference call starting at 17.00 ET.

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SEE: Salesforce was born in the recession of 2001, says board chairman and co-CEO Marc Benioff