(Reuters) – Salesforce.com Inc on Thursday forecast full-year earnings that were below market expectations, sending shares of the online software company down 3.9% in extended trading.
The latest and largest acquisition of workspace messaging company Slack Technologies Inc for a $ 27.7 billion deal in December is considered expensive by any Wall Street analyst, despite long-term benefits. .
“The weak guidance for FY22 EPS suggests that margin expansion is likely to ease even with the adjustment of the Slack acquisition,” said Scott Berg, analyst at Needham & Co.
The largest provider of customer relationship management software forecast adjusted earnings per share for the full year between $ 3.39 and $ 3.41, below estimates of $ 3.49 per share.
While emerging new virus strains represent a new hurdle to business spending, Salesforce is also facing stiff competition from Microsoft Corp, which is increasing its cloud-based offerings.
Revenue for the quarter ended January 31 increased to $ 5.82 billion from $ 4.85 billion a year earlier, driven by higher demand for its cloud-based software.
Analysts on average expected revenue of $ 5.68 billion, according to IBES data from Refinitiv.
The company slightly raised its revenue forecast for fiscal 2022 to between $ 25.65 billion and $ 25.75 billion, above the average analyst estimate of $ 25.42 billion.
Excluding items, the company earned $ 1.04 per share, beating estimates of 75 cents.
Report of Chavi Mehta in Bengaluru; Edited by Arun Koyyur