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Tuesday, November 30, 2021by Ian Harvey
After the Salesforce report the stock tumbled when the software maker reported third quarter earnings and revenue that topped estimates but guidance disappointed. CRM stock reported earnings that for the first time included a full quarter of financials from Slack Technologies.
READ “CRM Earnings Date November 30, 2021”
Salesforce reported October-quarter earnings after the market close on Tuesday. Salesforce earnings fell 27% to $1.27 on an adjusted basis, including the Slack acquisition. The deal closed in July.
Revenue climbed 27% to $6.86 billion, including Slack.
Outline of Salesforce Report.....
Guidance from Salesforce Report Falls Short of Expectations.....
For the current quarter ending in January, Salesforce's revenue outlook met expectations. The software maker expects revenue in a range of $7.224 to $7.234 billion vs. estimates of $7.23 billion.
But the company forecast earnings in a range of 72 cents to 73 cents a share, missing estimates. Analysts had projected a profit of 82 cents a share.
The guidance suggests that some Salesforce
customers may be reluctant to pay for new projects as Covid-19 cases flare up
and the omicron variant emerges. Other corporate software makers have posted
results that showed challenges keeping up growth rates that met investor
Slack Acquisition and Impact…..
Salesforce in July completed the acquisition of Slack for $27.7 billion, a deal meant to fuel sales growth of more than 25% a year. The transaction gave Benioff another product to hawk to customers -- a popular enterprise chat program that has been used to help employees communicate and collaborate, especially during the pandemic.
Still, Slack faces increasing competition from Microsoft Corp.’s Teams program, and it fell behind companies like Zoom Video Communications Inc. at providing videoconferencing services early in the lockdowns.
Salesforce.com Inc. named Chief Operating Officer Bret Taylor as co-chief executive officer with co-founder and Chairman Marc Benioff during the Salesforce report.
Benioff will continue as board chairman of Salesforce, which is the top maker of cloud customer-relations software and one of the world’s 35 most valuable companies by market value. Taylor was also named vice chair.
“Bret is a phenomenal industry leader who has been instrumental in creating incredible success for our customers and driving innovation throughout our company,” Benioff said Tuesday in a statement. “He has been my trusted friend for years, and I couldn’t be happier to welcome him as Co-CEO.”
Taylor is a veteran tech executive. He co-created Google Maps in 2005 and later served as Facebook Inc.’s chief technology officer for three years, leaving in 2012 to co-found Quip, a productivity software company. Salesforce bought Quip in 2016. Taylor has been a board member at Twitter Inc. since 2016 and on Monday was named chairman.
CRM stock has gained about 27% in 2021 heading into Salesforce report. Salesforce stock has dipped from an all-time high of $311.75 on Nov. 19.
CRM stock tumbled 6.13% to $267.49 in extended trading on the stock market Tuesday. In Tuesday's regular session, Salesforce stock fell 3.97% amid a broad market sell-off.
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