Salesforce co-CEO Marc Benioff released the enterprise software giant’s latest financial results Tuesday, telling CNBC’s Jim Kramer that it was “probably the best quarter we’ve ever had.”
Shares of Salesforce, which have fallen heavily over the past three months, jumped 3% in extended trading on Tuesday as Wall Street reacted to the company’s fourth-quarter results. Both revenue and earnings per share topped estimates, and the FY2023 outlook is also better than analysts expected.
“This has been an exceptional quarter, possibly the best quarter we have ever had, and you can really see that not only in the quarterly outlook, but also in what we expect next fiscal year,” Benioff said, noting San Francisco-based Salesforce expects revenue of between $32 billion and $32.1 billion in fiscal 2023.
That’s higher than the $31.78 billion forecast by analysts polled by Refinitiv.
In fiscal 2022, Salesforce generated $26.49 billion in revenue, so the upper end of its 2023 revenue forecast would mean an increase of just over 21% year-over-year.
“We’re leaving $20 billion behind and $30 billion is now ahead of us,” said Benioff, co-founder of Salesforce in 1999.
He said Salesforce’s next phase of growth continues to be driven by digital transformation and the fact that its customers need a wide range of tools to support their own customers. That’s why Salesforce has been working to consolidate all of its recent acquisitions, Benioff said, pointing to data analytics firm Tableau, integration software provider MuleSoft, and chat app Slack.
Benioff also said he was pleased with Salesforce’s operating cash flow and outlook. The company reported $6 billion for fiscal year 2022, up 25% year-over-year, and with growth expectations of 21-22% in fiscal 2023.
Shares of Salesforce, which is part of the Dow, have risen 7% in the past five sessions, but have fallen nearly 27% in the past three months as investors moved away from growth-focused tech companies to more sheltered market segments.
Disclosure: Cramer’s charitable foundation owns shares in Salesforce (CRM).
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