Salesforce finished its fiscal 2024 on a strong note, as the enterprise software giant continued to deftly balance sales and profit growth. The company also boosted its stock buyback program, and management even tossed in its first-ever dividend — a sign of its confidence in the business. We’re still believers, too. Revenue increased 11% year-over-year to $9.29 billion in the three months ended Jan. 31, exceeding the $9.22 billion expected by analysts, according to estimates compiled by LSEG, formerly Refinitiv. Adjusted earnings per share of $2.29 rose 36% on an annual basis and topped the $2.26 predicted by analysts, LSEG data showed. Adjusted operating margin expanded to 31.4% in the quarter, missing estimates of 31.55%, according to FactSet. On a GAAP basis, quarterly operating margin checked in at 17.5%, below the 18% expected. GAAP stands for generally accepted accounting principles. The stock initially dipped more than 5% in extended trading due to elevated expectations and a fiscal 2025 revenue forecast that was slightly below expectations. By the end of the conference call, though, shares erased those losses and moved slightly higher, before fading back into the red. Up or down Thursday, it’s been quite a run for Salesforce. The stock rallied nearly 14% this year through Wednesday’s close after almost doubling in 2023. We think more gains lie ahead. CRM 1Y mountain Salesforce’s stock performance over the past 12 months. Bottom line Were the results perfect? No, but it was an overall solid quarter for Salesforce, with the company beating on most key metrics. Operating margins slightly fell short of Wall Street’s high hopes, but the expansion on an annual basis was significant, and a testament to the transformation management delivered over the past year in response to activist investors who demanded improved profitability. Instead of quibbling over a slight miss on margin, we’d rather focus on the direction where it is headed. And that’s higher, with…
Read the full article here
