Salesforce Shares Fall on Weak Revenue Guidance

The software giant also lowered its forward-looking revenue guidance.for the full year.
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Salesforce shares were falling in after-hours trading on Thursday after the software giant narrowly beat first quarter revenue estimates, but revised its forward-looking guidance downward. 

For its fiscal first quarter 2021, which ended April 30, Salesforce posted revenue of $4.87 billion, slightly beating analysts' forecast of $4.85 billion. Its non-GAAP earnings per share was 70 cents, versus 69 cents expected by analysts. 

Salesforce  (CRM) - Get Report shares were down 3% in the minutes following the report

Looking ahead, the company issued second quarter revenue guidance of between $4.89 billion to $4.9 billion, up roughly 22% year over year and lower than an analyst consensus of $5.03 billion

For the full year, Salesforce updated its revenue guidance to approximately $20 billion, up 17% year over year. It had previously guided for between $21 billion to $21.1 billion for fiscal 2021. 

"Our results, amidst this global crisis, demonstrated our ability to execute at speed, innovate at scale and the strength of our business model," said Marc Benioff, Salesforce CEO. "We made long-term investments in keeping our employees safe, supporting our customers, delivering crucial innovation like Work.com, and helping our communities with PPE, grants, and technology. The pandemic showed us that digital is an imperative for every company, and we're confident Salesforce will continue to accelerate as we bring our customers into the new normal."

The company noted its COVID-19 response in a press release, which included the launch of Work.com, a suite of tools intended to help companies return to work, and a number of operational changes such as directing employees to work from home and committing to no significant layoffs for 90 days. 

Salesforce shares were up about 8% year to date heading into earnings. 

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