Salesforce (CRM) Q4 2021 Results

Salesforce shares fell as much as 4% in extended trading Thursday after the enterprise software company posted earnings that exceeded analysts’ estimates, but Salesforce fell short of its earnings forecast for the full year taking into account the communication implications of the Slack app purchase team.

Here’s how the company did it:

• Earnings: $ 1.04 per share, adjusted, compared to 75 cents per share as expected by analysts, according to Refinitiv.
• Returned: $ 5.82 billion, compared to $ 5.68 billion as expected by analysts, according to Refinitiv.

The company recorded 20% year-over-year revenue growth in the fourth quarter of the company’s 2021 fiscal year, which ended Jan.31, according to a statement. In the previous quarter, turnover increased by 20%.

Although the revenue forecast for the full 2022 fiscal year exceeded estimates, the earnings forecast was weak.

For the full year, which would include the impact of Slack, the company called $ 3.39 to $ 3.41 in adjusted earnings per share on $ 25.65 billion to $ 25.75 billion in revenue. That includes $ 600 million in revenue from Slack. Analysts polled by Refinitiv forecast $ 3.49 in adjusted earnings per share and $ 25.42 billion in revenue.

Salesforce sees 88 cents to 89 cents of adjusted earnings per share in the fiscal first quarter on $ 5.875 billion to $ 5.885 billion in revenue. Analysts polled by Refinitiv expected adjusted earnings of 76 cents per share on $ 5.72 billion in revenue.

In the fiscal fourth quarter, Salesforce generated $ 1.36 billion in subscription and support revenue from its key Sales Cloud product for lead tracking, which translates to approximately 11% annualized growth, compared to 12% in the previous quarter. Acquisitions have helped Salesforce grow over the years, and Tableau data visualization software purchased by Salesforce in 2019 contributed $ 1.81 billion to Salesforce’s subscription and support revenue from the platform. -form and other products, up 26% and accelerating from 24% in the previous quarter.

In December, Salesforce announced plans to acquire Slack for more than $ 27 billion. Salesforce said it plans to close the deal at the end of the quarter that ends July 31. Also in the quarter, Salesforce announced Vaccine Cloud, a tool that government agencies and businesses can use to manage the deployment of coronavirus vaccines.

Salesforce had $ 18 billion in performance bonds remaining at the end of the quarter, up 20%. Analysts polled by FactSet were expecting growth of 16% and the growth rate was 20% in the previous quarter.

Salesforce shares are up 4% since the start of 2021, while the S&P 500 index is up about 2%.

Executives will hold a conference call with analysts to discuss the results starting at 5 p.m. Eastern time.

This is the latest news. Please come back for updates.

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