- Salesforce (CRM) shares surged by 16% as the cloud software maker issued a better-than-expected forecast. The company recorded a revenue of $8.38B while Salesforce’s Q4 revenue grew by 14%. Moreover, the adjusted operating margin, at 29.2%, was the highest in the company’s history.
- As a result, Salesforce shares have risen 26% so far in 2023 and outperformed the S&P 500. As a part of its comprehensive transformation plan, Salesforce is focusing on increasing profitability, and will be expanding its share buyback program to $20B with $10B allocated for it.
Why it matters
In January, Salesforce implemented a restructuring strategy with a strong emphasis on profitability, leading to a 10% reduction in its workforce and incurring $828M in costs in the quarter.
