Shares of Salesforce soared on Tuesday after the cloud-based software company reported better-than-expected fourth-quarter earnings and forecast higher profits for 2021.
The San Francisco-based company posted adjusted earnings per share of $1.44, beating analysts’ estimates by 4 cents a share. Revenue was also up 28 percent year over year to $5.82 billion, slightly above expectations of 5.81 billion dollars in revenue according to Refinitiv data compiled by CNBC Make It.
In addition, executives projected that total sales would grow between 22% and 23% this fiscal year ending in January 2022 with operating margin expanding from 6% last year to 8%. This is due largely in part to their acquisition of Slack Technologies which has already begun contributing positively towards its growth strategy and customer base expansion plans.
Chief Executive Officer Marc Benioff said during the conference call “We are off to an amazing start this fiscal year” adding that he expects “strong double-digit growth across all our businesses” as well as continued success with customers, such as Coca-Cola, which recently announced they will be using Salesforce’s CRM platform for their entire global operations.
Salesforce stock closed at 219$ per share on Tuesday, up more than 10 % from Monday’s close price representing one-day gains worth nearly 18 Billion Dollars making it one of the biggest single-day gainers among tech stocks since February 2020 when markets were hit hard due to Covid 19 pandemic related lockdowns worldwide.
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