Salesforce shares, which have He struggled hard for the past three months, jumped 3% in extended trading on Tuesday, as Wall Street reacted to the company’s fourth-quarter numbers. Both revenue and earnings per share beat estimates, while the outlook for fiscal 2023 is also better than analysts had expected.
“This was an exceptional quarter, probably the best we’ve ever seen, and you can really see it not just in the quarterly guidance, but as we look at the next fiscal year,” Benioff said, noting that San Francisco-based Salesforce expects revenue of $32 billion in revenue. and $32.1 billion in fiscal year 2023.
That’s higher than the $31.78 billion forecast by analysts polled by Refinitiv.
Salesforce saw $26.49 billion in revenue in fiscal 2022, so the high end of its 2023 revenue guidance would represent an increase of just over 21% year over year.
“We’re leaving $20 billion behind, and now $30 billion is ahead of us,” said Benioff, who co-founded Salesforce in 1999.
He said Salesforce’s next stage of growth continues to be driven by digital transformation and that its customers need a wide range of tools to support their customers. That’s why Salesforce has put together all of its recent acquisitions, Benioff said, referring to data analytics firm Tableau and integration software provider MuleSoft and chat app Slack.
Benioff also said he was pleased with Salesforce’s operating cash flow performance and forecast. The company announced $6 billion for fiscal 2022, up 25% year-over-year, and forecasts growth of between 21% and 22% in fiscal 2023.
Shares of Dow-component Salesforce are up 7% over the past five sessions, but have remained down about 27% over the past three months as investors move away from growth-oriented tech companies toward more defensive parts of the market.
Disclosure: The Kramer Charitable Fund owns stock in Salesforce (CRM).
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