Keith Block, Co-CEO of Salesforce, downplayed the earnings cut: & # 039; Business looks good & # 039;

<pre><pre>Keith Block, Co-CEO of Salesforce, downplayed the earnings cut: & # 039; Business looks good & # 039;

Keith Block, Co-CEO of Salesforce, told CNBC's Jim Cramer on Tuesday that lowering earnings forecast isn't a big issue for the company.

The business software vendor's shares closed at $ 161, but fell 2% in expanded trading after it released a profit forecast of $ 0.54 to $ 0.55 per share for the current quarter ending January. Analysts had expected $ 0.61 per share.

"We had a great quarter. We have been very successful," said Block at Mad Money. "Our business looks good in the fourth quarter, it looks good for next year, and we are in a great position to advise these customers."

Salesforce’s third quarter was reported earnings per share of $ 0.75 excluding certain items, compared to $ 0.66 as expected by Refinitiv. Revenue was $ 4.5 billion, compared to $ 4.45 billion as expected by Refinitiv.

Cramer asked Block if this quarter was "some delta, an actuality that did it for the next quarter of what you should have done."

Block, who was co-CEO with Marc Benioff in August 2018, replied: "We have a very good track record. We are the fastest growing enterprise software company of our size and size."

Cramer later said he was focusing on easy leadership because he didn't want to mislead the audience.

Block also found that, according to Refinitiv, Salesforce now expects sales of $ 16.99 to $ 17 billion, compared to the average analyst estimate of $ 16.9 billion.

He also reiterated CFO Mark Hawkins' call at last month's Dreamforce conference that Salesforce would double by fiscal 2024 and generate sales of $ 34 to $ 35 billion this year.

"There are a lot of great opportunities. Digital transformation is pervasive," said Block, "and that's why companies come to us as trusted advisors and it's a very exciting time to be in the market."

Salesforce stock rose 18% this year, but lagged the S&P 500, which rose 23%, and delivered far less returns than smaller cloud companies like ServiceNow, Shopify, and Veeva.

CNBC's Ari Levy contributed to this report.

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