Salesforce plummets as financials fall short of expectations

Salesforce (NYSE:CRM) stock plummeted, down 16%, after its first quarter financial results disappointed compared to market expectations.

Revenue did increase 11% year-over-year, to $9.13 billion, but was shy of the $9.15 billion that Wall Street analyst consensus predicted.

Net income amounted to $1.53 billion, or $1.58 per share, up from $199 million and 20 cents per share a year ago. Analysts had expected Salesforce to report $2.37 per share.

Salesforce said its operating cash flow for the quarter was $6.25 billion, an increase of 39% year-over-year, while free cash flow reached $6.08 billion, up 43% year-over-year.

“Our profitable growth trajectory continues to drive strong cash flow generation,” chief executive Marc Benioff.

He added: “We are at the beginning of a massive opportunity for our customers to connect with their customers in a whole new way with AI.

“We’re incredibly well positioned to help companies realize the promise of AI over the next decade.”

In New York, the stock was down $44.07 or 16.2% changing hands at $227.53 in Wednesday’s ‘afterhours’ dealing.