By Jeffrey T. Lewis
Salesforce Inc. said Tuesday its profit plummeted in the first quarter after the company reported higher expenses and didn’t repeat a gain on strategic investments from a year earlier.
The San Francisco-based company had net income of $28 million in the three months through April 30, compared with $469 million in the same period of 2021. The company had earnings per share of 3 cents, from 50 cents a year earlier, and adjusted earnings per share of 98 cents from $1.21. Revenue increased to $7.41 billion from $5.96 billion.
The sales figure surpassed expectations while the profit figure fell short. The market consensus was for revenue of $7.38 billion and net income of $956 million and Salesforce’s guidance for first-quarter revenue was a range from $7.37 billion to $7.38 billion.
Salesforce’s total operating expenses rose to $5.35 billion from $4.05 billion a year earlier, while it reported net gains on strategic investments of $7 million, down from a gain of $288 million a year earlier.
Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com
(END) Dow Jones Newswires
May 31, 2022 16:46 ET (20:46 GMT)
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