Salesforce shares sink after weak profit guidance

Shares in workplace software company Salesforce sank 15 per cent in after- market trading on Wednesday on sales and earnings guidance that missed forecasts.

Salesforce said it anticipated second-quarter earnings per share of between $1.31 and $1.33 a share, well below a consensus estimate of $1.47 a share. Quarterly revenue is forecast at between $9.2bn and $9.25bn, below analysts’ expectations for $9.37bn.

The company also lowered its estimate for subscription sales growth for the full year to “slightly below” 10 per cent, compared with the 10 per cent it forecast in February. 

Marc Benioff, chief executive, said Salesforce was “at the beginning of a massive opportunity” with the rollout of artificial intelligence tools.