Salesforce (CRM) late Wednesday reported higher-than-expected fiscal fourth-quarter results, driven by a double-digit rise in subscription and support revenue, while the software maker’s top-line outlook for the year trailed Wall Street’s estimates.
Adjusted per-share earnings rose to $2.29 during the three months ended Jan. 31 from $1.68 a year earlier, topping the consensus on Capital IQ of $2.27. Revenue gained 11% to $9.29 billion, compared with the Street’s $9.22 billion view.
Subscription and support revenue gained 12% to $8.75 billion, while professional services and other fell 9% to $539 million.
Salesforce said it expects fiscal 2025 revenue of $37.7 billion to $38 billion, which would fall short of the $38.61 billion consensus estimate. The company forecast adjusted EPS of $9.68 to $9.76, compared with analysts’ expectations of $9.58.
Salesforce’s shares were down 4% in after-hours trade.
For the current quarter, the company projects adjusted EPS at $2.37 to $2.39 on revenue between $9.12 billion and $9.17 billion. The Street’s view is $2.20 and $9.14 billion, respectively.
“We’re incredibly well positioned to build on our success and capitalize on the massive surge in tech spending expected over the coming years, delivering an unprecedented level of intelligence to our customers as (artificial intelligence) transforms every company and industry,” Chief Executive Marc Benioff said in a statement.
Salesforce declared a quarterly dividend of $0.40 per share, marking its first-ever payout. The dividend is payable April 11 to stockholders as of March 14. Going forward, the company intends to pay a dividend on a quarterly basis, subject to market conditions and board approval.
Salesforce increased the size of its share repurchase program by $10 billion.