Salesforce Earnings Q1 2020

Salesforce shares rose 3% in prolonged trading on Tuesday, after the cloud computing software company posted better-than-expected earnings for the first quarter of fiscal year 2020.

Here are the key figures:

• Earnings: 93 cents per share, with the exception of certain items, against 61 cents per share as expected by analysts, according to Refinitiv.
• Returned: $ 3.74 billion, compared to $ 3.68 billion as forecast by analysts, according to Refinitiv.

Business revenue grew 24% in the quarter, according to a statement, while Salesforce continued to expand its product portfolio beyond sales software, but also in marketing, marketing and sales. customer support and services. The company also sees increased demand for its MuleSoft offerings, after spending $ 6.5 billion on the data connectivity software provider last year.

Salesforce said it expects revenue of US $ 3.94 billion to US $ 3.94 billion, or 46 cents to 47 cents per share in the second quarter.

For the full year, Salesforce reported earnings per share of 2.88 to 2.90 USD, excluding certain items, on a turnover of 16.10 to 16.25 billions of dollars. Analysts surveyed by Refinitiv were looking for earnings per share of $ 2.66, excluding certain items, on a $ 16.12 billion business figure.

In the last quarter, Salesforce announced new activities at Evercore Investment Bank, which would use this software to help bankers build relationships with their customers. Salesforce has also implemented artificial intelligence enhancements over the period and announced its merger with Salesforce.org, the philanthropic arm of the company. Salesforce had previously stated that it expects this agreement to generate revenues of about $ 150 to $ 200 million for fiscal year 2020.

While Salesforce's shares rose nearly 9% for the year, at the close of Tuesday, the stock is far from its peak in April. Wedbush Securities analysts led by Steve Koenig wrote in a note to customers last week that the negativity around Salesforce, following the poor guidance provided in the latest earnings report, seemed exaggerated. Their channel verifications suggested that the Sales Cloud lead product had not slowed down and that major deals were underway.

However, the company seems to have lost some business to Microsoft among small and medium-sized businesses, said Wedbush analysts, who recommend buying the shares. Nevertheless, global technology integrators have stated that they do not see Microsoft "winning competition," says the Wedbush report.

Leaders will discuss the results with analysts at a 17:00 teleconference. Eastern Time.

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