Salesforce misses on revenue, issues disappointing guidance
Salesforce missed analysts' expectations for quarterly revenue in its top two categories.
Salesforce reported weaker-than-expected quarterly revenue on Wednesday and issued a forecast that fell short of analysts' estimates. The stock price slipped 4% in extended trading.
Here's how the company did compared with LSEG consensus:
Earnings per share: $2.78 adjusted vs. $2.61 expected
Revenue: $9.99 billion vs. $10.04 billion expected
Revenue increased 7.6% from a year ago in the quarter that ended Jan. 31, according to a statement. Net income rose to $1.71 billion, or $1.75 per share, from $1.45 billion, or $1.47 per share, a year earlier.
The top category of subscription and support revenue was service, at $2.33 billion. The figure was up about 8% and below the $2.37 billion consensus among analysts surveyed by Visible Alpha. In the sales category, Salesforce generated $2.13 billion in revenue, up 8% and also trailing Visible Alpha's consensus of $2.17 billion.
During the quarter, the company introduced its second-generation Agentforce artificial intelligence agent technology, which answers employee questions in the Slack team communications app.
Salesforce said it has completed more than 3,000 paid deals involving Agentforce since October. Agentforce has gotten involved in 380,000 conversations through Salesforce's help website, with humans getting involved in 2% of cases, according to the statement.
Wall Street had high hopes, but Salesforce didn’t quite deliver clearly. Still though $9.99 billion isn’t exactly pocket change it's huge money. Stocks is not for the weak of heart. One little miss and 4 percent drop 🤦