Skip to main content

Market Overview

Salesforce Brings In Earnings Beats, Co-CEO Keith Block Steps Down

Share:
Salesforce Brings In Earnings Beats, Co-CEO Keith Block Steps Down

Shares of Salesforce.com (NYSE: CRM) dropped on Tuesday despite fourth-quarter earnings and sales beats as the company announced its CEO would step down.

Investors sold off the software vendors shares after its announcement that co-CEO Keith Block would step down. Marc Benioff was named chair and CEO.

The company reported earnings of 66 cents per share, beating Street estimates by more than a dime and up nearly 14% from the same quarter last year.

Sales came in at $4.85 billion, also beating analysts' expectations of $4.75 billion, and up more than 34% over the same period a year ago.

Salesforce also raised its fiscal 2021 sales guidance from $21 billion to $21.1 billion.

The company also said it will acquire cloud and mobile software provider Vlocity for about $1.33 billion. The deal is expected to close in the second quarter of fiscal 2021, the company said.

Highlights

  • 2020 Revenue of $17.1 Billion was up up 29% year-over-year in constant currency.
  • Fourth quarter operating cash flow was $1.63 Billion, up 23% year-over-year.
  • Raised first quarter of 2021 revenue guidance from $4.875 billion to $4.885 billion, up about 30% year-over-year.

"We are delighted to raise our revenue guidance for FY21 by $200 million to $21.1 billion at the high end of the range, while expanding our operating margin," Benioff said in a statement. 

Stock Down

Salesforce's stock was down about 1.6% in after-hours trading to $179.

Related Links:

Why Salesforce Is This Firm's Best Idea 

Salesforce Raises 2020 Sales Guidance

 

Related Articles (CRM)

View Comments and Join the Discussion!

Posted-In: Keith Block Marc BenioffEarnings M&A News Guidance Management After-Hours Center Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com