Salesforce's stock price rises following a better-than-anticipated financial report.

• In 2023, the growth rate of Salesforce decreased as businesses sought cost-cutting measures.
• This year, the Nasdaq has risen by 36%, but Salesforce's stock has surpassed this growth with a jump of over 70%.
• The stock rallied further in extended trading on Wednesday.

On Wednesday, extended trading saw shares of the cloud software vendor rise more than 8% after their fiscal third-quarter earnings surpassed analysts' expectations.

Here’s how the company did:

• The adjusted earnings per share were $2.11, higher than the expected $2.06 per share by LSEG.
• Revenue: $8.72 billion versus the $8.72 billion expected by LSEG

Salesforce's growth rates have decreased in recent quarters, with revenue increasing only 11% from $7.84 billion a year ago, as businesses have cut back on spending due to economic uncertainties and high interest rates.

Despite the Nasdaq climbing 36% this year, Salesforce's stock has jumped more than 70%, largely due to the company's ability to lower expenses. In January, Salesforce announced a restructuring plan that included cutting 10% of jobs and reducing office space.

Salesforce has revised its forecast for operating cash flow growth in fiscal 2024 from 30% to 33%. Additionally, the company anticipates revenue for the fiscal fourth quarter to increase by approximately 10% to a range of $9.18 billion to $9.23 billion. This is higher than the analysts' expectation of $9.21 billion, according to LSEG.

Salesforce CEO Marc Benioff announced in a press release that the company had another successful quarter in executing its profitable growth plan, resulting in $8.7 billion in revenue and an increase in operating margin guidance for this fiscal year.

Salesforce's customer support unit saw a 12% increase in revenue to $2.07 billion, while the sales software segment also experienced a 12% rise in revenue to $1.9 billion. Additionally, the platform and other revenue segment, which includes Slack, saw an 11% increase in revenue to $1.69 billion.

Salesforce shares reached $250 following the earnings report, which is approximately 20% below their record high from two years ago.

Salesforce CEO Marc Benioff: CEOs are all Slack-first when I speak with them.