Salesforce surges on strong third-quarter results
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The news: Salesforce shares rose more than 8% in extended trading on Wednesday after the US software giant reported fiscal third-quarter earnings that beat estimates.
The numbers: The cloud-based software company announced third-quarter revenue of USD8.72 billion ($13.2 billion), up 11% from USD7.84 billion a year ago. Salesforce also reported net income of USD1.22 billion, or USD1.25 a share, compared with net income of USD210 million, or 21 cents a share, in the previous year's corresponding quarter.
The company raised its fiscal 2024 forecast for operating cash flow growth from 30% to 33%, while revenue for the fiscal fourth quarter is due to increase around 10% to USD9.18-9.23 billion. Adjusted earnings were USD2.11 per share.
The context: Salesforce has experienced a hit to growth rates in recent months, and in January announced a restructuring plan that cut 10% of its jobs. However, the company's stock has soared more than 70% this year, outperforming the Nasdaq, which is up 36%.
What they said: Salesforce CEO Marc Benioff said: “We had another strong quarter of executing on our profitable growth plan we set in motion last year, delivering [US]$8.7 billion in revenue and again raising our operating margin guidance for this fiscal year.”
The sources: Salesforce Media Release, CNBC
