$Salesforce (CRM.US)$ late Wednesday reported revenue that fell short of Wall Street estimates and offered a downbeat outlook for the ongoing three-month period, though earnings topped expectations. Revenue gained 11% to $9.13 billion, but fell short of the $9.15 billion consensus compiled by Capital IQ. Adjusted per-share earnings rose to $2.44 during the three months ended April 30 from $1.69 a year earlier, topping the Street view of $2.38. Subscription and support revenue gained 12% to $8.59 billion, while professional services and other fell to $548 million from $605 million. For the current quarter, Salesforce projects adjusted EPS of $2.34 to $2.36 on revenue between $9.2 billion and $9.25 billion. The Street’s view is $2.40 and $9.34 billion, respectively. Salesforce said it continues to expect fiscal 2025 revenue at $37.7 billion to $38 billion. The company now forecasts adjusted EPS of $9.86 to $9.94, up from the prior $9.68 to $9.76

Salesforce says customers are eager to get their hands on the company’s AI offerings, but tight budgets are getting in the way. COO Brian Millham says on a call with analysts that there is strong demand as companies recognize the value of AI-related offerings. He says CEOs are excited about the opportunity of using AI to improve operations. That said, he said the company is still seeing measured buying behavior. Salesforce saw elongated deal cycles, deal compression and significant scrutiny on budgets in the first quarter. Shares drop 17% to $225.30 post-market.

By Emily Bary Stock could notch steepest daily decline since 2008 as company sees ‘elongated deal cycles, deal compression and high levels of budget scrutiny’ Investors have been jittery about the software sector this year, and Salesforce Inc.’s latest earnings adds fuel to the fire. The company, seen as a juggernaut in the software industry, came up short with its quarterly revenue guidance, sending its shares sliding 17% in Wednesday’s after-hours trading. Such a decline, if it holds through Thursday’s close, would be the steepest for Salesforce shares (CRM) since they fell 18% on Aug. 21, 2008. In looking at the current quarter, Salesforce models $9.20 billion to $9.25 billion in revenue, as well as adjusted earnings per share of $2.34 to $2.36. That compares with a consensus view of $9.35 billion and $2.40, respectively. See also: Nvidia, AMD shares see their rallies cool. Will software stocks soon get their

Salesforce management held its full-year revenue guidance steady, despite a key leading indicator showing some weakness. Current remaining performance obligations, a proxy the company uses for deferred revenue and backlog, came in below Wall Street expectations, which can signal a hit to sales in future quarters. CFO Amy Weaver says on a call with analysts that the measured buying environment is incorporated in guidance, but the company has also seen strong product demand. Attrition rates remain healthy and the company is central to customers’ businesses, she says. “When I step back and really take a holistic view of the full year, we do feel confident that we will be within our guided range,” she says.

Salesforce, Inc. (NYSE:CRM) Q1 2025 Results Conference Call May 29, 2024 5:00 PM ET Company Participants Mike Spencer – EVP, Finance and Strategy, IR Marc Benioff – Chair and CEO Amy Weaver – President and CFO Brian Millham – President and COO Conference Call Participants Keith Weiss – Morgan Stanley Brad Sills – Bank of America Brent Thill – Jefferies Kirk Materne – Evercore ISI Karl Keirstead – UBS Raimo Lenschow – Barclays Kash Rangan – Goldman Sachs Mark Murphy – JPMorgan Operator Welcome to Salesforce’s Fiscal 2025 First Quarter Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session [Operator Instructions]. I would now like to hand the conference over to your speaker, Mike Spencer, Executive Vice President of Finance and Strategy and Investor Relations. Sir, you may begin. Mike Spencer Thanks, and good