Cloud computing services giant Salesforce turned a profit in the fourth quarter, beating Wall Street expectations in revenue and profit. However, the company's shares fell 7% in after-hours trading as guidance for the current fiscal year fell short of expectations.
On Wednesday local time, Salesforce announced its financial report showing that for the fourth fiscal quarter ended January 31, 2024,The company's revenue increased by 10% year-on-year8% to 92$900 million, higher than analysts' expectations of 92$200 million.
Q4,Salesforce net profit was 14$500 million, better than analysts**'s 12$600 million, diluted earnings per share of 1$47, which was also better than analysts' expectations of 1$29. In the year-ago quarter, the company posted a net loss of $98 million, or 10 cents per diluted share.
I'm happy to say that booking growth has improved over the past two quarters," said Amy We**er, head of finance at Salesforce, in a meeting with analysts.
However, the guidance for the future is not encouraging.
Salesforce expects revenue of 91 for the first quarter of fiscal 2025$200 million to $91$700 million, basically in line with analysts' expectations of 91$600 million
Full-year fiscal 2025 revenue is expected to be in the range of $37.7 billion to $38 billion, up 9% from fiscal 2024 but falling short of analysts' expectations of 386$200 million.
The We**er said the full-year guidance took into account foreign exchange pressures and continued weakness in professional services. The financial report shows thatProfessional Services segment revenue for the fiscal fourth quarter decreased 9% year-over-year.
Brian Millham, president and chief operating officer of Salesforce, said that while there is a high demand for AI products,However, the guidelines do not take into account the enormous impact of AI.
But he said the adoption of AI technology within companies over time should help profit margins rise.
During the quarter, Salesforce said it would acquire software startup SPIFF on undisclosed terms and begin selling its products on Amazon Web Services (AWS).
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