Salesforce’s earnings beat analysts’ estimates. The stock rose almost 5% in extended trading. Salesforce reported better-than-expected earnings for its fiscal third quarter, which ended on October 31, 2023:
- Revenue: $8.72 billion, up 11% from the previous year
- Net income: $1.22 billion, up year-over-year
- Earnings per share: $2.11, $0.05 better than the analyst estimate of $2.06
Salesforce has historically expanded by well over 20% a year. However, growth rates have slipped in recent quarters due to economic uncertainties and high interest rates.
Salesforce is focusing on AI after reducing its workforce and cutting costs earlier this year. It also forecasts fourth-quarter revenue and profit above expectations.
“We had another strong quarter of executing on our profitable growth plan we set in motion last year, delivering $8.7 billion in revenue and again raising our operating margin guidance for this fiscal year,” Salesforce CEO Marc Benioff said in the press release.
In its biggest unit, which provides customer support, Salesforce saw revenue jump 12% to $2.07 billion. Revenue in the sales software segment also rose 12% to $1.9 billion. Platform and other revenue, which includes Slack, increased 11% to $1.69 billion.
Salesforce shares rose to $250 after the earnings report. At that level, they’re about 20% off their record high from two years ago.
