Salesforce Q1 Results: Will poor revenue growth push Salesforce share price lower?
Salesforce Q1 results: Key insights
- Salesforce posted Q1 revenue growth of 11% to $8.25 billion, its slowest pace of growth in 13 years.
- Salesforce management noted some softening in large project services demand and the Americas showed a more pronounced slowdown than expected.
- Salesforce expects current-quarter revenue between $8.51 billion and $8.53 billion.
4. Salesforce’s expenditure jumped 36% to $243 million as the company invested in AI-related tools.
Salesforce share price and Salesforce results:
Salesforce shares dropped 6% in pre-market trading on June 1, 2023. Salesforce shares have lost about 28% of their value since their all time highs last hit in 2022.
Cloud and software service providers have had a rather tough year as soaring interest rates led technology firms to undertake heavy cost cutting mechanisms. Soaring interest rates also led to an economic slowdown in the US.
Salesforce share historical performance:
| 1 Day | 1 Month | 1 Year | 5 Years |
| +2% | +13% | +27% | +71% |
(Data as on May 31, 2023)
Decoding Salesforce Q1 earnings:
Salesforce Revenue
Salesforce posted Q1 revenue growth of 11% to $8.25 billion, its slowest pace of growth in 13 years, while analysts were expecting $8.18 billion.
| Q1FY23 | Q1FY22 | % change | |
| Total Revenue | $8.2 billion | $7.4 billion | 11% |
Salesforce net profit
Salesforce reported quarterly net income of $199 million. Profits surged due to a one time tax benefit the company received during the quarter.
| Q1FY23 | Q1FY22 | % change | |
| Net Profit | $199 million | $28 million | 610% |
Salesforce dividend
Salesforce did not declare any dividend during the quarter.
Salesforce share price target (H2)
- Brokerage DA Davidson has a neutral rating on the stock with a share price target of $200.
- Brokerage JP Morgan has an overweight rating on the firm with a share price target of $230.
- Bernstein has an underperform rating on the stock with a share price target of $210.
This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.