Salesforce stock climbed Wednesday after January-quarter earnings fell from a year earlier but topped views, while revenue beat analyst estimates. The enterprise software maker's revenue guidance for CRM stock came in above expectations while its profit outlook missed.
Salesforce reported fourth-quarter earnings after the market close on Tuesday. CRM stock edged up 0.5% to near 210 in early trading on the stock market today.
Including recently acquired Slack Technologies, Salesforce earnings fell 19% to 84 cents on an adjusted basis. The Slack deal closed in July.
San Francisco-based Salesforce said revenue climbed 26% to $7.33 billion, including including $312 million from Slack. A year earlier, Salesforce earnings were $1.04 a share, including investment gains, on sales of $5.82 billion.
In addition, CRM stock analysts expected Salesforce to report earnings of 75 cents a share on sales of $7.24 billion.
CRM Stock: April Quarter Guidance Mixed
The enterprise software maker said current remaining performance obligations, or CRPO bookings, rose 22% to $22 billion. That topped analyst estimates of $21.42 billion.
Meanwhile, CRPO bookings are an aggregate of deferred revenue and order backlog.
"CRM stock continues benefiting from digital transformation tailwinds as seven-figure deals grew 34% year-over-year and eight-figure deals (more than doubled)," said Cowen analyst Derrick Wood in a report.
For the current quarter ending in April, Salesforce's revenue outlook topped expectations. The software maker expects revenue in a range of $7.37 billion to $7.38 billion vs. estimates of $7.27 billion.
Also, the company forecast earnings in a range of 93 cents to 94 cents per share versus estimates of $1 a share for CRM.
Salesforce sells software under a subscription model. Its software helps businesses organize and handle sales operations and customer relationships. The company has expanded into marketing, customer services and e-commerce.
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