Salesforce stock jumps as it raises profit forecast

Marc Benioff, co-CEO of Salesforce.com Inc., speaks on a panel session at the World Economic Forum in Davos, Switzerland, on Tuesday, May 24, 2022.

The enterprise-software maker reported fiscal first-quarter results that exceeded analysts' expectations and lifted its full-year earnings guidance.

The company did it.

• Earnings: 98 cents per share, adjusted, vs. 94 cents per share as expected by analysts, according to Refinitiv.
• Revenue: $7.41 billion, vs. $7.38 billion as expected by analysts, according to Refinitiv.

The company's revenue rose in the first quarter of the year. Net income plummeted to $28 million.

Revenue from the Service Cloud for handling customer-service inquiries increased by almost 17%. Revenue from the core Sales Cloud product for managing business opportunities increased by 18%.

The Sales Cloud, Service Cloud and Marketing Cloud integrations were in the works. In July, the company acquired the company for $27.1 billion. The legal name of the company was changed fromSalesforce.com Inc.

In early March, after Russia invaded Ukraine,Salesforce said it began to end relationships with customers it has accumulated in Russia through other channels.

The company said it had $13.64 billion in revenue from subscription billings. The StreetAccount consensus was $13.75 billion.

Fiscal second-quarter earnings are expected to be between $1.01 and $1.02 per share on an adjusted basis and revenue is expected to be between $7.69 billion and $7.70 billion. Refinitiv had expected adjusted earnings per share to be $1.14 and revenue to be $7.77 billion.

The company lowered its revenue guidance for the full fiscal year. It now sees $4.74 to $4.76 per share in adjusted earnings. Analysts had expected adjusted earnings per share to be $4.75 and revenue to be $32.06 billion. For the full year, the company had expected adjusted earnings to be between $4.62 and $4.64 per share on revenue of between $32.0 billion and $32.1 billion.

Since the start of the year, the broader S&P 500 index has declined while the stock ofSalesforce has moved about 36% lower.

Executives will discuss the results with analysts on a conference call. Time.

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Chairman and co-CEO ofSalesforce,Marc Benioff, says that the company was born during the 2001 recession.