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Salesforce Beats Revenue Estimates, Raises Guidance; Shares Rise on Strong Operating Margin

Dec 3, 2024, 09:06 PM

Salesforce Inc. reported its fiscal third-quarter earnings, with revenue surpassing analysts' expectations and the company raising its full-year revenue guidance. The software giant posted revenue of $9.44 billion, up 8.3% year-over-year, beating the consensus estimate of $9.35 billion. Subscription and support revenue reached $8.88 billion, also exceeding forecasts. Adjusted operating income was $3.12 billion, above estimates of $3.01 billion, and the adjusted operating margin was 33.1%, surpassing the estimated 32.2%. However, adjusted earnings per share came in at $2.41, slightly below analysts' expectations of $2.44, impacted by $0.17 in losses on strategic investments. Salesforce provided fourth-quarter adjusted EPS guidance of $2.57 to $2.62, compared to consensus estimates of $2.65, and raised the lower end of its fiscal year 2025 revenue guidance to a range of $37.8 billion to $38.0 billion, up from the previous guidance of $37.7 billion to $38.0 billion. CEO Marc Benioff stated, "We delivered another quarter of exceptional financial performance across revenue, margin, cash flow, and cRPO." Shares of Salesforce rose over 4% in after-hours trading following the earnings announcement.