Salesforce Shares Fall As Co-CEO Keith Block Steps Down

Block has served as co-CEO to Marc Benioff since August 2018.
Author:
Publish date:

Salesforce  (CRM) - Get Report shares dropped in after-hours trading Tuesday after the company announced that co-CEO Keith Block is stepping down. 

The CRM giant beat revenue expectations for the fourth quarter, reporting $4.85 billion in sales versus analyst forecasts of $4.75 billion. Its earnings came in at a non-GAAP diluted earnings of 66 cents per share versus an expected 56 cents.

In addition, the company said in a press release that Keith Block, co-CEO to founder Marc Benioff, is stepping down. Benioff will remain as sole CEO.

Block, who had led strategy, operations and Salesforce's growth plan as co-CEO, was elevated to that role in August 2018. Shares of Salesforce were falling 2.6% in after-hours trading as investors digested the news. 

"After a fantastic run I am ready for my next chapter and will stay close to the company as an advisor," Block said in a statement. Salesforce also said it has appointed Gavin Patterson, former chief executive of British telecommunications firm BT Group plc, as CEO and president of Salesforce's international group. 

"We are thrilled that Gavin has chosen to lead Salesforce International headquartered in London. Salesforce International oversees our business in EMEA, Latin America and the Asia Pacific region," said Benioff. 

In addition, Salesforce raised its first quarter revenue guidance to between $4.875 billion to $4.885 billion, and reported its full fiscal 2020 revenue at $17.1 billion, up 29% year-over-year.  

Salesforce is a holding in Jim Cramer’s Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells CRM? Learn more now.