Proactive Investors - Salesforce Inc (NYSE:CRM, ETR:FOO) posted another solid financial performance on Wednesday, but disappointing guidance overshadowed the company’s earnings beat.
The company provided adjusted fiscal first-quarter earnings guidance of $2.37 to $2.39 per share, with revenue projected to range between $9.12 billion and $9.17 billion.
For the full fiscal year 2025, the company anticipates adjusted earnings of $9.68 to $9.76 per share and revenue between $37.7 billion and $38.0 billion, reflecting an anticipated growth rate of 8.6% at the midpoint of the range.
Analysts had previously forecast adjusted earnings of $2.20 per share on $9.15 billion in revenue for the first quarter, and $9.57 per share on $38.62 billion in revenue for the fiscal year 2025.
Investors were disappointed in the more muted outlook, sending shares down nearly 5% afterhours.
Despite the disappointing outlook, Salesforce reported adjusted earnings per share of $2.29 for the fourth quarter, slightly exceeding the anticipated $2.26, while revenue totaled $9.29 billion, compared to an expected $9.22 billion.
Notably, Salesforce's revenue grew by 10.8% year over year, reaching $9.29 billion for the quarter ending January 31. Net income stood at $1.45 billion, or $1.47 per share, a substantial improvement from the previous year's loss of $98 million, or $0.10 per share.
During the quarter, Salesforce announced its acquisition of sales commission software startup Spiff, signaling its strategic intent to broaden its product portfolio. Additionally, the company initiated sales of its products on the Amazon (NASDAQ:AMZN) Web Services marketplace, expanding its market reach and accessibility.
In a move reflecting confidence in its financial health, Salesforce initiated a quarterly dividend of $0.40 per share. Additionally, the company bolstered its share repurchase program by $10 billion.
Marc Benioff, Salesforce’s CEO, hailed the fiscal year as a "phenomenal year of transformation," citing substantial progress in cash flow and margin growth.
Benioff emphasized the strategic importance of the Einstein 1 Platform, aimed at leveraging advancements in artificial intelligence to drive customer intelligence and industry transformation.