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First-quarter revenue of $11.1 billion — up 13% year over year and ahead of what analysts had projected — marked a company record for Salesforce $CRM -0.88%, though after-hours trading was muted as full-year guidance came in a touch below what Wall Street had anticipated.
Adjusted earnings per share came in at $3.88. Analysts had expected $3.12 per share, according to CNBC. Compared with $1.54 billion, or $1.59 per share, in the same period last year, quarterly net income climbed to $2.11 billion, equivalent to $2.42 per share. Operating cash flow reached $6.7 billion, up 3% year over year.
Looking ahead to the current quarter, the company projected revenue in a range of $11.27 billion to $11.35 billion, with adjusted earnings per share of $3.25 to $3.27. The consensus forecast, according to CNBC, had called for $11.36 billion in revenue alongside $3.25 per share in adjusted earnings. The company raised the midpoint of its full-year revenue guidance to $45.9 billion to $46.2 billion, implying roughly 11% growth. Analysts had expected $46.12 billion, according to CNBC.
On the earnings call, Robin Washington, Salesforce's president, COO, and CFO, cited three drags on the outlook: persistent softness in marketing and commerce, deteriorating trends in Tableau bookings and renewals, and elevated license revenue swings stemming from the Informatica deal, according to CNBC.
