Salesforce shares fall on disappointing profit forecast – Reuters

The company logo for Salesforce.com is displayed on the Salesforce Tower in New York City, U.S., March 7, 2019. REUTERS/Brendan McDermid
Nov 30 (Reuters) – Salesforce.com Inc (CRM.N) forecast current-quarter profit below Wall Street estimates on Tuesday as it faces stiff competition from rivals including Microsoft Corp (MSFT.O), sending its shares down 6% in extended trading.
The San Francisco, California-based company also picked insider Bret Taylor to co-lead the company alongside top boss Marc Benioff.
Taylor was named the chairman of Twitter Inc's (TWTR.N) board on Monday. He will also be the vice chair of Salesforce's board, effective immediately, the company said.
Salesforce, a bellwether in the Customer Relationship Management (CRM) sector, has seen a boost in demand due to the pandemic accelerating businesses' transition to cloud-based platforms.
However, the company continues to face stiff competition from competitors including Microsoft Corp's (MSFT.O) Azure, Amazon.com Inc's (AMZN.O) Amazon Web Services and Alphabet Inc's (GOOGL.O) Google Cloud.
Salesforce said it expected adjusted earnings in the fourth quarter to be between 72 cents and 73 cents per share, below estimates of 81 cents per share, according to IBES data from Refinitiv.
The company also forecast first-quarter revenues to be between $7.22 billion and $7.25 billion, compared with estimates of $7.36 billion.
Last month, Microsoft reported strong growth in its Azure segment, its flagship cloud-computing business. While Google Cloud's third-quarter revenue rose 45% to $4.99 billion. read more
On a post-earnings call, Taylor touted the performance of Slack, a workplace messaging app Salesforce bought in a $27.7 billion deal, but signaled the company was not keen on any M&A in the near term.
However, Salesforce reported better-than-expected revenue for the third quarter, boosted by strong demand for its cloud-based software.
Revenue rose 27% to $6.86 billion in the quarter ended Oct. 31, beating analysts' estimate of $6.8 billion, according to IBES data from Refinitiv.
Stripping one-time costs, the company reported earnings of $1.27 per share, also above estimates of 92 cents per share.
Our Standards: The Thomson Reuters Trust Principles.
Subscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2021 Reuters. All rights reserved

source