Salesforce Reports Q2 Beat, Shares Drop 5% on Guidance Miss
2022.08.25 00:05
Salesforce Reports Q2 Beat, Shares Drop 5% on Guidance Miss
By Davit Kirakosyan
Salesforce (NYSE:CRM) shares dropped more than 5% after-hours following the company’s reported Q2 results. While both EPS of $1.19 and revenue of $7.72 billion (up 22% year-over-year) came in better than the consensus estimates of $1.03 and $7.7 billion, respectively, the guidance missed expectations.
Subscription and support revenues grew 21% year over year to $7.14 billion, and Professional services and other revenues grew 35% year over year to $0.58 billion.
The company expects Q3/23 EPS to be in the range of $1.20-$1.21, compared to the consensus of $1.29, and revenue in the range of $7.82-7.83 billion, compared to the consensus of $8.07 billion.
For the full 2023-year, the company expects EPS in the range of $4.71-$4.73, compared to the consensus of $4.75, and revenue in the range of $30.9-31 billion, compared to the consensus of $31.73 billion.
The company also initiated its first-ever share repurchase program of up to $10.0 Billion.
“We continue to deliver disciplined, profitable growth at scale, and have a capital allocation strategy that will make us an even better positioned company for the long term,” said Amy Weaver, President and CFO of Salesforce.
