Salesforce Shares Are Sliding After The Bell: What's Going On?

Salesforce Inc CRM shares are trading lower in Wednesday's after-hours session on the heels of the company's quarterly results. 

• Q1 Revenue: $8.25 billion beat estimates of $8.18 billion
• Q1 EPS: $1.69 beat estimates of $1.61

Revenue was up 11% year-over-year, cash flow from operations was up 22% and free cash flow was up 21%. 

Salesforce said it repurchased $2.1 billion of its stock in the first quarter.

"Salesforce significantly exceeded our non-GAAP margin target for the quarter — up 1,000 basis points year-over-year, and we are raising our FY24 non-GAAP operating margin guidance to a 550 basis point increase year-over-year," said Marc Benioff, chair and CEO of Salesforce.

"At the same time, we are leading the next major revolution in CRM — infusing trusted, secure generative AI across our entire product portfolio. Salesforce's generative AI ecosystem wields Einstein GPT, Slack GPT, and Tableau GPT, delivering trusted power across our product portfolio."

Outlook: Salesforce sees second-quarter revenue in a range of $8.51 billion to $8.53 billion versus estimates of $8.49 billion. The company expects second-quarter adjusted earnings of $1.80 to $1.90 per share versus estimates of $1.70 per share. 

Salesforce expects full-year revenue to be between $34.5 billion and $34.7 billion versus estimates of $34.65 billion. The company sees full-year adjusted earnings between $7.41 and $7.43 per share versus estimates of $7.14 per share. 

Salesforce also raised full-year operating margin guidance to approximately 11.4% and approximately 28% on an adjusted basis.

CRM Price Action: Salesforce shares were down 4.96% at $213.01 at the time of writing, per Benzinga Pro.

Photo: courtesy of Salesforce.