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Salesforce Falls Despite Beat as 2022 Full-Year Earnings Guidance Misses

Salesforce expects to earn between $3.39 and $3.41 per share in the current 2022 fiscal year, short of analyst expectations of $3.49 per share.
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Shares of Salesforce  (CRM) - Get Salesforce Inc. Report were falling after-hours Thursday despite the company reporting fiscal fourth-quarter results that were well ahead of estimates as full year 2022 guidance missed estimates.

The San Francisco-based company reported adjusted earnings of $1.04 per share on revenue of $5.82 billion, a 20% year-over-year increase. Analysts were expecting the company to report earnings of 75 cents per share on revenue of $5.67 billion, according to FactSet. 

However, Salesforce also issued adjusted fiscal 2022 earnings guidance between $3.39 and $3.41 per share. Analysts polled by FactSet are expecting earnings of $3.49 per share. 

Shares of Salesforce were falling 4.2% to $221.33 after slumping 3.9% during the day.

Salesforce raised the first quarter revenue guidance it previously issued in December to between $5.875 billion and $5.885 billion, compared to analyst estimates of $5.72 billion. Full fiscal 2022 revenue is expected to range between $25.65 billion and $25.75 billion, compared to analyst estimates of $25.41 billion.

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Salesforce also issued adjusted first-quarter earnings guidance between 88 cents and 89 cents per share. Analysts are expecting first quarter earnings of 75 cents per share.

"We had a record quarter and year by innovating more and faster than ever, enabling our customers to be successful from anywhere, and becoming more relevant and strategic than ever," said CEO Marc Benioff. 

The full year revenue guidance includes $600 million in revenue from Slack with the assumption that Salesforce's proposed purchase of the company will be complete in late Q2. Salesforce is currently attempting to purchase the work messaging service for $27.7 billion.

That acquisition is currently being reviewed by the Department of Justice's Antitrust Division. Last week, shares fell after the company said that the Justice Department had requested additional information about the deal.

"The company and Slack have and will continue to cooperate fully with the DOJ in its review," Salesforce said in a regulatory filing.