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Salesforce Earnings Beat in Q4; Co-CEO Keith Block Steps Down

Published 02/25/2020, 04:09 PM
Updated 02/25/2020, 04:56 PM
© Reuters.  Salesforce.com Earnings, Revenue Beat in Q4
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Investing.com - Salesforce.com said on Tuesday Keith Block has stepped down as co-chief executive and raised its revenue guidance following fourth-quarter results that topped expectations.

Marc Benioff is now chairman and CEO of the company, Salesforce confirmed.

"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.

Shares fell 1.9% after hours.

Salesforce.com (NYSE:CRM) announced earnings per share of $0.66 on revenue of $4.85 billion. Analysts polled by Investing.com anticipated EPS of $0.56 on revenue of $4.75 billion. That compared with EPS of $0.7 on revenue of $3.6 billion in the same period a year before. Salesforce.com had reported EPS of $0.75 on revenue of $4.51 billion in the previous quarter.

The earnings beat was led by the subscription and support business, with revenue up 35% to $4.56 billion and professional services sales up 21% to $1.1 billion.

The company also said it will acquire cloud and mobile software company Vlocity for $1.33 billion.

Salesforce guided first-quarter revenue within a range of $4.875-to-4.885 billion and earnings per share between $0.70 to $0.71, compared with consensus: of $4.83 billion and $0.70 respectively.

Salesforce.com shares are up 11.71% from the beginning of the year , still down 7.17% from its 52 week high of $195.72 set on February 20. They are outperforming the S&P 500 which is down 3.53% year to date.

Stay up-to-date on all of the upcoming earnings reports by visiting Investing.com's earnings calendar

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