Salesforce.com posted a big profit in its first full quarter with Slack Technologies Inc. On board, however, year-end outlook criticized the stock in after-hours trading on Tuesday.
It reported third-quarter fiscal earnings of $468 million, or 47 cents a share, on sales of $6.86 billion, up from $5.42 billion last year. After accounting for stock-based compensation and other impacts, the cloud software company reported earnings of $1.27 per share, down from adjusted earnings of $1.72 per share in the last year’s quarter but well ahead of estimates.
Analysts expected adjusted average earnings of 92 cents per share from sales of $6.8 billion, according to FactSet.
For the fiscal fourth quarter, Salesforce forecast adjusted earnings of 72 cents to 73 cents per share on sales of $7.22 billion to $7.23 billion. Analysts, on average, expected earnings of 82 cents per share from sales of $7.24 billion, according to FactSet.
Salesforce raised its expectations for the full year, just as it did in First Quarter And Second Quarter reports; Management now expects full-year revenue of $26.39 billion to $26.4 billion and adjusted earnings of $4.68 to $4.69 per share, after projecting earnings of $4.36 to $4.38 per share on sales of $26.25 billion to $26.35 billion three months ago.
Salesforce shares fell more than 5% in after-hours trading immediately after the results were announced, having closed 3.9% lower at $285.25.
Salesforce is closed in Her Big Money Acquisition of Slack Workplace Communications Software In late July, just before the third quarter of August. Then, customer relationship management software company Slack made Slack the focus at its annual Dreamforce conference in September, where it showed how it plans to integrate Slack with other big acquisitions, such as Soft Mule And Council, in addition to its various sectors focusing on specific industries.
“Salesforce expects a large runway to land and expand ahead of Slack, while the young platform now has the added advantage of having an ‘army’ at its disposal to sell the product,” White wrote in a earnings preview, while maintaining a buy rating and a $328 price target.
Salesforce didn’t break Slack’s quarterly performance in Tuesday’s release, but CFO Amy Weaver said, “Slack had another strong quarter, and we’re thrilled to represent Slack on our biggest deal.”
Salesforce executive Brett Taylor was heavily involved in the acquisition of Slack, and Salesforce separately announced on Tuesday that he had been promoted to the company’s co-CEO, sharing the position with company founder Marc Benioff. Taylor previously served as the company’s president and chief operating officer, and was announced as the new CEO of Twitter Inc.
Monday, part of The departure of that company’s CEO, Jack Dorsey.
“I am grateful that Mark and our board of directors have placed their trust in me to help lead Salesforce through the next chapter,” Taylor, who will also serve as Vice Chairman of the Salesforce Board of Directors, said in a statement.
Salesforce previously upgraded Oracle Corp.
CEO Keith Block to co-CEO with Benioff, but Leaving the company after less than two years.
Salesforce also announced that Williams-Sonoma Inc.
CEO Laura Alper and United Airlines Holdings Inc. Previous
CEO Oscar Munoz will join the company’s board of directors. Albert’s appointment became effective immediately, while Munoz is expected to take his seat at the beginning of 2022.
Salesforce shares soon received a boost from Dreamforce, but have fallen back in recent weeks after hitting record highs in early November. The stock has suffered six straight sessions of losses – the longest in nearly two years – that Prices cut 7.7% before breaking that range on Monday.
Overall, Salesforce shares have gained 28.4% so far this year, while the S&P 500 . is up
It increased 23.9%.