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

Shares of Salesforce.com 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.

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