Is Salesforce’s Q4 Beat Enough For Investors?
Salesforce released fiscal fourth-quarter financial results after markets closed Tuesday. The firm said that it had $0.66 in earnings per share (EPS) and $4.85 billion in revenue, compared with consensus estimates that called for $0.55 in EPS and $4.75 billion…
Salesforce.com, Inc. (NYSE: CRM | CRM Price Prediction) released fiscal fourth-quarter financial results after markets closed Tuesday. The firm said that it had $0.66 in earnings per share (EPS) and $4.85 billion in revenue, compared with consensus estimates that called for $0.55 in EPS and $4.75 billion in revenue. The same period from last year had $0.70 in EPS and $3.6 billion in revenue.
During the quarter, revenues grew 35% year over year, and 34% in constant currency.
Subscription and support revenues were $4.56 billion, an increase of 35%. Professional services and other revenues increased by 26% to $288 million.
Looking ahead to the fiscal first quarter, the company expects to see EPS in the range of $0.70 to $0.71 and revenue in the range of $4.875 billion to $4.885 billion. Consensus estimates are calling for $0.70 in EPS and $4.84 billion in revenue for the coming quarter.
Separately, the company announced that Keith Block will step down as Salesforce Co-CEO. Marc Benioff will now by the chairman and CEO, with Block becoming advisor to the CEO. Salesforce also announced that it has named Gavin Peterson, former BT Group CEO, as president and CEO of Salesforce International.
Marc Benioff, chairman & co-CEO of Salesforce, commented:
Our Q4 and FY20 results were phenomenal. We are delighted to raise our revenue guidance for FY21 by $200 million to $21.1 billion at the high end of the range, while expanding our operating margin. Nothing is more important to us than the trust and customer success we have with each one of our customers. Salesforce’s Customer 360 platform uniquely brings companies and customers together.
Shares of Salesforce closed at $181.76, with a 52-week range of $137.87 to $195.72. The consensus analyst price target is $203.08. Following the announcement, the stock was initially down 2.5% at $177.14 in the after-hours session.
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
