Salesforce has become a target of activist investors after falling 60% from last year’s highs. However, today’s earnings and revenue beat indicate that the company may be turning a corner. 🤔
The software giant’s adjusted earnings per share of $1.68 and revenues of $8.38 billion beat the expected $1.36 and $7.99 billion. 💪
Last quarter the company unveiled a restructuring strategy, which led to $828 million in related costs. It laid off over 7,000 employees as part of its cost-cutting efforts, leaving many questioning its “family-like” culture. Ultimately, the company has had to refocus on profitability, with revenue growth slowing to just 14% YoY. ✂️
For the current fiscal quarter, it expects adjusted earnings per share of $1.60 to $1.61 and revenues of $8.16 to $8.18 billion. That topped analyst estimates for $1.32 per share and $8.05 billion in revenues. Its full-year guidance also topped estimates.
Additionally, the company is doubling its buyback program from $10 billion to $20 billion. 💰
We’ll have to wait and see whether these results can stave off Third Point, Elliott Management, and Starboard Value activist efforts. But for now, investors seem happy with the news, as $CRM shares are up 15% after hours. 📈