Salesforce (CRM) earnings Q1 2021

Marc Benioff, President and Co-CEO of Salesforce, speaks during an interview with Bloomberg Television at the Dreamforce conference in San Francisco on September 25, 2018.

David Paul Morris | Bloomberg | Getty Images

Salesforce shares fell 3% after the company announced its first quarter financial results on Thursday.

Here’s how the company did it:

  • Earnings: 70 cents per share, adjusted
  • Returned: $ 4.87 billion

The company’s turnover increased by 30% compared to the quarter of the previous year, declaration. Analysts polled by Refinitiv expected adjusted earnings per share of 69 cents on sales of $ 4.85 billion. Comparing the results with the estimates is not easy since the coronavirus pandemic closed many companies during the quarter. The company’s first fiscal quarter ended April 30.

Salesforce has granted “temporary financial flexibility” to customers most affected by the pandemic, the statement said.

Turning to the forecast, Salesforce expects adjusted earnings per share from 66 cents to 67 cents and revenues of $ 4.89 billion to $ 4.90 billion in the second fiscal quarter. Analysts polled by Refinitiv expected 75 cents of adjusted earnings per share and $ 5.03 billion in revenue.

For the full year, Salesforce reports adjusted earnings per share of $ 2.93 to $ 2.95 on approximately $ 20 billion in revenue, which means revenue growth of 17%. Analysts polled by Refinitiv were looking for adjusted earnings per share of $ 3.09 on revenue of $ 20.73 billion.

In the first quarter, Salesforce Sales Cloud’s flagship offer for tracking business with customers and prospects generated $ 1.245 billion in revenue, up 16% year-over-year. Service Cloud product for customer support was slightly higher than $ 1.252 billion in revenue, up 22.7%. Service Cloud was once much smaller than Sales Cloud, but has gradually grown to match its same scale.

During the quarter, Salesforce committed not to make significant layoffs for 90 days. He also acquired a customization software company Evergage for undisclosed conditions and announced that co-CEO Keith Block is stepping down. May 13 Salesforce said Gavin Patterson, President and CEO of Salesforce International and former CEO of BT Group, becomes president and chief revenue officer of the entire company.

Analyst Yun Kim of Rosenblatt started covering Salesforce with a sales note on May 4, noting that some sales executives could follow Block out the door and that after spending around $ 25 billion on acquisitions in the two In recent years, the company could face backlash if it were to do more big business. Additionally, Kim’s industry audits in January, before governments began to induce people to stay at home to avoid coronaviruses, suggested that the pace of large companies deploying commercial applications could slow this year.

“We believe that when the business IT spending environment returns, the pace of large-scale commercial application deployments is likely to lag behind other higher priority initiatives,” Kim said. “Our most recent audits indicate that many of these SFDC initiatives have been postponed indefinitely or have been significantly reduced.”

Excluding the reaction to the announcement of the results, the Salesforce share is up 12% to date in 2020.

The leaders will discuss the results with analysts during a conference call at 5 p.m. Eastern time.

These are the latest news. Please check back for updates.

WATCH: Salesforce CEO Marc Benioff discusses tools to help mitigate the spread of coronavirus in the workplace

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