Salesforce’s second-quarter results exceeded expectations, with earnings per share coming in at $2.56 adjusted, compared to the expected $2.36. Revenue also outperformed, reaching $9.33 billion, higher than the anticipated $9.23 billion. The company’s revenue increased by 8% year over year, ending on July 31. This growth was attributed to a rise in average revenue per user, driven by the adoption of premium products. Net income rose to $1.43 billion, or $1.47 per share, up from $1.27 billion, or $1.28 per share in the same quarter the previous year.
Amidst the positive financial results, Amy Weaver, the company’s chief financial officer, announced her decision to step down from her role. Weaver, who had been with the company since 2013, will continue to serve as CFO until a successor is appointed. Following this, she will transition into an advisory role within the company. Salesforce’s co-founder, chair, and CEO, Marc Benioff, expressed his confidence in finding a suitable replacement by considering internal and external candidates.
Salesforce has provided guidance for its adjusted fiscal third-quarter earnings, ranging from $2.42 to $2.44 per share, with projected revenue of $9.31 billion to $9.36 billion. Looking ahead to fiscal 2025, the company anticipates adjusted earnings per share of $10.03 to $10.11 and revenue between $37.7 billion to $38 billion, indicating a growth rate of 8% to 9%. Additionally, Salesforce raised its adjusted operating margin guidance for the full year to 32.8%, up from 32.5% in May.
Activist investors Starboard and ValueAct revealed increases in their Salesforce holdings prior to the company’s positive financial results announcement. Despite the after-hours trading boost, Salesforce shares are down 2% in 2024, while the S&P 500 index has seen a 17% increase during the same period. The announcement of Weaver’s resignation and the company’s strong financial performance in the second quarter led to a 4% increase in Salesforce shares during extended trading.
Salesforce’s second-quarter results highlighted its financial strength and growth trajectory, exceeding market expectations. The leadership change with Weaver’s departure opens up opportunities for new leadership within the company. With a positive outlook for the future and continued focus on innovation, Salesforce is positioned to maintain its competitive edge in the business software industry.