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Salesforce (CRM) earnings Q1 earnings report 2024

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Salesforce CEO Marc Benioff attends the TIME100 Gala at Jazz at Lincoln Center in New York on April 26, 2023.

Dimitrios Kambouris | Getty Images

Salesforce reported an earnings and revenue beat and lifted its full-year guidance, but the stock dropped in extended trading as capital costs were higher than analysts expected.

Here’s how the company did:

  • Earnings: $1.69 per share, adjusted, vs. $1.61 per share as expected by analysts, according to Refinitiv.
  • Revenue: $8.25 billion, vs. $8.18 billion as expected by analysts, according to Refinitiv.

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Capital expenditures in the quarter totaled $243 million, up about 36% and above the $205 million consensus among analysts polled by StreetAccount.

Concerns about costs overshadowed the company’s 11% increase in revenue for the quarter that ended on April 30.

For the fiscal second quarter, Salesforce expects earnings of $1.89 to $1.90 per share on an adjusted basis and revenue of $8.51 billion to $8.53 billion. Analysts surveyed by Refinitiv had expected $1.70 in adjusted earnings per share and $8.49 billion in revenue.

Salesforce raised its earnings forecast for the 2024 fiscal year. It’s now calling for $7.41 to $7.43 in adjusted earnings per share on $34.5 billion to $34.7 billion in revenue. In March, Salesforce’s projected adjusted earnings of $7.12 to $7.14 per share. Analysts polled by Refinitiv had been looking for adjusted earnings of $7.14 per share and revenue of $34.65 billion.

CEO Marc Benioff said in the statement that the company “significantly exceeded” its operating margin target for the quarter.

During the quarter, Salesforce announced Einstein GPT generative artificial-intelligence technology designed to help salespeople, marketers and customer-service agents do their jobs more efficiently. Many other software makers have been embedding generative AI into their products since OpenAI’s ChatGPT went viral after its November launch.

Also in the quarter, Elliott Investment Management said it would not move forward with its director nominations after the activist firm disclosed a Salesforce stake.

Prior to the 4.2% drop after hours, Salesforce shares were up 67% so far this year, outperforming the S&P 500 index, which has edged up 9% in the same period.

Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.

This is breaking news. Please check back for updates.

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