Salesforce Inc CRM shares are trading lower in Wednesday's after-hours session after the company reported third-quarter results and announced that Bret Taylor will step down as vice chair and co-CEO.
What Happened: Salesforce said third-quarter revenue increased 14% year-over-year to $7.84 billion, which beat average analyst estimates of $7.82 billion, according to Benzinga Pro. The company reported quarterly earnings of $1.40 per share, which beat estimates of $1.21 per share.
"In this time of economic uncertainty, we remain committed to profitable growth and consistent operating margin expansion," said Amy Weaver, president and CFO of Salesforce.
Salesforce expects fourth-quarter adjusted earnings to be between $1.35 and $1.37 per share versus average estimates of $1.34 per share. The company sees full-year adjusted earnings between $4.92 and $4.94 per share versus estimates of $4.73 per share.
What Else: Taylor will step down as vice chair and co-CEO of Salesforce, effective Jan. 31, 2023. Marc Benioff will remain in his role as chair and transition from co-CEO to the sole chief of the company at that time.
"After a lot of reflection, I've decided to return to my entrepreneurial roots. Salesforce has never been more relevant to customers, and with its best-in-class management team and the company executing on all cylinders, now is the right time for me to step away," Taylor said.
The stock appears to be largely reacting to Taylor's impending departure.
CRM Price Action: Salesforce shares are down 6.45% in after hours at $149.91 at time of publication, according to Benzinga Pro.
Photo: courtesy of Salesforce.
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