Salesforce reported fourth quarter revenue of $11.2bn ($11.2bn expected), up 10% ignoring currency moves. Within that, subscription and support revenue rose 11% to $10.7bn.
Underlying operating profit rose to $3.8bn ($3.8bn expected), up around 16% year on year, with continued cost discipline helping to support margins.
Free cash flow increased 39% to $5.3bn in the quarter. Net debt, including leases, was $7.6bn at the period end.
A quarterly dividend of $0.44 was announced, up 5.8%. The board also approved a new $50bn buyback programme, though there’s no fixed end date for execution.
For the year ahead, revenue guidance of $45.8–46.2bn implies 10–11% growth, including around three percentage points from the recently acquired Informatica.
The shares were down 4.0% in after-hours trading.
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This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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