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Salesforce Inc (NYSE: CRM) just came in ahead of Street estimates for its fiscal fourth quarter. Shares of the cloud company are still losing in after-hours.

Salesforce stock down on guidance

The stock is trending down because investors aren’t fully content with the guidance. Salesforce now forecasts up to $38 billion in revenue in its fiscal 2025.

Analysts, in comparison, were at $38.6 billion. Marc Benioff – the chief executive of Salesforce Inc said in a press release today:

We’re well positioned to build on our success and capitalize on the massive surge in tech spending, delivering an unprecedented level of intelligence to customers as AI transforms every company and industry.

The New York-listed firm ended its fourth quarter with $27.6 billion of current remaining performance obligations – up 12%. CRM has gained roughly 75% over the past 52-weeks.

Notable figures in Salesforce Q4 earnings report

• Earned $1.44 billion that translates to $1.47 per share
• Had $98 million of loss (10 cents a share) last year
• Adjusted EPS printed at $2.29 as per the earnings report
• Revenue jumped 11% year-over-year to $9.29 billion
• Consensus was $2.27 a share on $9.22 billion in revenue

Salesforce noted about a 12% annualized growth in its subscription and support revenue that helped offset a 9.0% hit to professional services revenue in Q4. CFO Amy Weaver said on Wednesday:

We had a strong close to our fiscal year and demonstrated significant progress on our profitable growth strategy. Looking ahead, we remain committed to driving shareholder value.

Salesforce declares a first-ever dividend

Salesforce Inc also announced 40 cents a share of quarterly dividend for the first time ever on Wednesday. Its board also authorised $10 billion worth of stock purchase today.

The California-based company saw its adjusted operating margin come in at 31.4% for the fourth quarter – including a 190 basis points hit related to restructuring.

Last month, we reported CRM to have opted for a hiring freeze. Wall Street currently has a consensus “overweight” rating on Salesforce stock.

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— Salesforce (@salesforce) February 28, 2024

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