Salesforce says its full-year revenue topped £14 billion for the first time

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Feb 26, 2021
  • Salesforce says its full-year revenue topped £14 billion for the first time.
  • The U.S. company beat Wall Street estimates in the fiscal fourth quarter.
  • Salesforce expects up to £4.22 billion of sales & 63.88 pence of EPS in Q1.

Salesforce.com Inc. (NYSE: CRM) said on Thursday that its full-year revenue topped £14 billion for the first time. The company also published its fourth-quarter earnings report that beat Wall Street estimates.

Salesforce shares slid roughly 5% in extended trading on Thursday to trade at £157.90 per share versus £89.21 per share in March 2020, when COVID-19 was at its peak. Here’s what you need to know about the different types of stock investments.

Salesforce Q4 results versus analysts’ estimates

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Salesforce said that it earned £191.63 million in the fourth quarter that translates to 20.10 pence per share. In the comparable quarter of last year, it had reported £178 million of loss instead. On an adjusted basis, the cloud-based software firm earned 75 pence per share.

As per Salesforce, its revenue in Q4 jumped to £4.18 billion versus the year-ago figure of £3.48 billion.

According to FactSet, experts had forecast the company to post £4.08 billion of revenue in the recent quarter. Their estimate for adjusted per-share earnings stood at a lower 53.83 pence. In the prior quarter (Q3), Salesforce had recorded £800 million of net income.

For the current financial year, CEO Marc Benioff now has a target of up to £18.50 billion in revenue. The company expects its adjusted earnings per share to fall in the range of £2.43 to £2.45. Analysts, on the other hand, are calling for £18.24 billion of revenue and £2.50 of adjusted earnings for Salesforce in fiscal 2021. Benioff said on Thursday:

“We never could have predicted a year ago what was in store, which makes me incredibly proud of how well we pivoted our company to adapt to this pandemic world.”

Salesforce’s guidance for the fiscal first quarter

The San Francisco-based company also gave its guidance for the fiscal first quarter on Thursday. Salesforce anticipates up to £4.22 billion of sales in Q1 and up to 63.88 pence per share of adjusted EPS, versus £4.11 billion of revenue and 53.83 pence of earnings per share expected.

Late last year, Salesforce said it will acquire Slack (workplace software company) for £19.88 billion in cash and stock.

Salesforce performed largely upbeat in the stock market last year with an annual gain of close to 35%. At the time of writing, the NYSE-listed firm has a market cap of £152.21 billion and a price to earnings ratio of 60.37.

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