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Salesforce (CRM) Revenue Report for Q1 2024




Salesforce CEO Marc Benioff attends the TIME100 Gala at Jazz at Lincoln Center in New York on April 26, 2023.

Dimitrios Kambouris | Getty Images

Salesforce reported earnings and revenue and lifted its full-year guidance, but the stock fell in extended trading as capital costs were higher than analysts expected.

Here’s how the company did it:

  • Earnings: $1.69 per share, adjusted, versus $1.61 per share as expected by analysts, according to Refinitiv.
  • Income: $8.25 billion, versus $8.18 billion as expected by analysts, according to Refinitiv.

Investments in the quarter totaled $243 million, up about 36% and above the $205 million consensus among analysts polled by StreetAccount.

Concerns about costs overshadowed the company’s 11% increase in revenue for the quarter ended April 30. Net income in the quarter was $199 million, or 20 cents per share, up from $28 million, or 3 cents per share, in the year-ago quarter.

For the fiscal second quarter, Salesforce expects earnings of $1.89 to $1.90 per share on an adjusted basis and revenue of $8.51 billion to $8.53 billion. Analysts surveyed by Refinitiv had expected $1.70 in adjusted earnings per share and $8.49 billion in revenue.

Salesforce raised its earnings forecast for fiscal 2024. It now calls for $7.41 to $7.43 in adjusted earnings per share on $34.5 billion to $34.7 billion in revenue. In March, Salesforce forecast adjusted earnings of $7.12 to $7.14 per share. Analysts polled by Refinitiv had been looking for adjusted earnings of $7.14 per share and revenue of $34.65 billion.

CEO Marc Benioff said in the statement that the company “significantly exceeded” its operating margin target for the quarter. Salesforce is now calling for an adjusted operating margin of 28% for fiscal 2024, up from the 27% forecast it provided in March.

During the quarter, Salesforce announced Einstein GPT generative artificial intelligence technology designed to help salespeople, marketers and customer service agents do their jobs more effectively. Many other software makers have built generative AI into their products since OpenAI’s ChatGPT went viral after its launch in November.

Also in the quarter, Elliott Investment Management said it would not move forward with its director nominations after the activist firm disclosed a Salesforce stake.

Before the 4.2% after-hours drop, Salesforce shares were up 67% so far this year, outperforming the S&P 500, which has gained 9% over the same period.

Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.

This is breaking news. Please check back for updates.

SEE: Slack CEO Lidiane Jones on integrating generative AI



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