Salesforce (CRM) is set to report its Q4 earnings after market close.
Activists are circling the cloud giant, and investors are looking to see how the company responds, not only in terms of its results, but what Salesforce CEO Marc Benioff will have to say in addressing activists’ concerns, especially when it comes to expense management.
Here’s what Wall Street’s expecting to see from Salesforce’s key metrics today, as compiled by Bloomberg:
Q4 2023 revenue: $8 billion expected versus $7.33 billion actual in Q4 2022
Q4 2023 adjusted earnings per share (EPS): $1.37 expected versus $0.84 in Q4 2022
Q4 2023 adjusted operating margin: 22.4% expected versus 15% in Q4 2022
Ultimately, this is expected to shake out to Salesforce’s slowest quarterly revenue growth ever, per Bloomberg. So even if Salesforce meets estimates, the company will still have a lot to answer for.
To be sure, Salesforce has taken steps to cut costs in recent months, including cutting 10% of its staff back in January. However, it hasn’t exactly been a straight line – for example, the company continues to pay actor Matthew McConaughey about $10 million annually for creative consulting services, according to reporting from The Wall Street Journal.
[Read more: Salesforce’s activist investors: Who are they, and what do they want?]
‘Laser focused’
Benioff needs to put on a show today, convincing company watchers and investors that Salesforce is headed in the right direction, analysts say. Pleasantries and business-as-usual isn’t going to cut it, wrote Wedbush analyst Dan Ives, who expects investors to be “laser focused” on Benioff’s approach.
“Street frustration is not going to be satisfied with the standard cookie-cutter conference call and view into FY24,” according to Ives.
At Salesforce today, a major conceptual shift at the company’s highest levels could even be underway, as pressure from activists and Wall Street may have already “led to changes in Salesforce’s operating philosophy,” BMO analyst Keith Bachman recently wrote.
Story continues
Allie Garfinkle is a Senior Tech Reporter at Yahoo Finance. Follow her on Twitter at @agarfinks and on LinkedIn.
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