Salesforce (CRM) shares slide despite topping earnings, revenue expectations

November 30, 2022 4:21 PM EST

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Salesforce (NYSE: CRM) shares fell in extended trading Wednesday on the back of its third-quarter earnings report, which saw it top analyst expectations.

The software company posted adjusted earnings of $1.40 per share on revenue of $7.84 billion, beating analyst estimates of earnings of $1.22 per share on revenue of $7.83 billion.

Revenue rose 14% year-over-year, with subscription and support revenues coming in at $7.23 billion, an increase of 13% YoY, and professional services and other revenues coming in at $0.60 billion, a 25% increase YoY.

Salesforce shares fell as much as 5.89% following the release. However, it gained 5.6% during the regular session.

"We had a solid quarter with revenue of $7.84 billion, up 14% year-over-year or 19% growth in constant currency, and record operating margin," commented Marc Benioff, Chair and Co-CEO of Salesforce.

Looking ahead, Salesforce said it sees fourth-quarter earnings between $1.35 and $1.37 per share, versus the consensus of $1.34, with revenue for the period seen slightly below guidance at between $7.932 and $8.032 billion, compared to the consensus of $8.02 billion.

In a separate release after the close, Salesforce announced that Bret Taylor will step down as the company's Vice Chair and Co-CEO, effective January 31, 2023.

Salesforce shares are down more than 37% in 2022.

By Sam Boughedda

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