Salesforce CEO Marc Benioff says foreign exchange pushed the company to lower revenue guidance

Salesforce CEO Marc Benioff says foreign exchange pushed the company to lower revenue guidance


Salesforce co-founder and co-CEO Marc Benioff told CNBC’s Jim Cramer on Tuesday that the rising value of the dollar played a part in the software company lowering revenue guidance in its latest quarter.

“Our guidance is really impacted by foreign exchange,” Benioff said in an interview on “Mad Money.” “We have now had to consume about $600 million of foreign exchange changes … since we first gave guidance last November.”

“The [U.S] dollar gets stronger and stronger as an incredible safe haven. And while that’s great if all of your revenue’s in the United States, we do have strong businesses internationally – we’re the third-largest software company in Japan right now,” he said, adding that he’s “never seen anything like” the deceleration of the Japanese yen since March.

The dollar index, which compares the U.S. currency’s performance against other major currencies including the euro and the yen, is up more than 6% this year and hit its highest level in about 20 years this month.

While a strong dollar can boost the performance of companies that largely depend on business in the U.S., it’s bad news for those that rely on businesses in Europe and Asia and see smaller profits when foreign sales are translated into dollars. 

“While we had a great quarter, the U.S. dollar, they had a far better quarter than we did. I’ve never seen the strength of the dollar like this,” Benioff said.

Salesforce beat Wall Street expectations on first-quarter revenue and earnings reported after the bell on Tuesday. The company raised its profit outlook but lowered its revenue guidance. 

Disclosure: Cramer’s Charitable Trust owns shares of Salesforce.

Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.

Disclaimer

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer’s world? Hit him up!
Mad Money TwitterJim Cramer Twitter – Facebook – Instagram

Questions, comments, suggestions for the “Mad Money” website? [email protected]





Source

Disney’s new ESPN flagship streaming app launches Thursday. Here’s what we know
Business

Disney’s new ESPN flagship streaming app launches Thursday. Here’s what we know

The Disney+ website on a laptop, July 18, 2022. Gabby Jones | Bloomberg | Getty Images Disney is launching its new ESPN flagship streaming app Thursday, just in time for the football season, bringing customers the full ESPN suite in one place. The entertainment company has been working on the launch of the direct-to-consumer app […]

Read More
Starbucks expands test of coconut water beverages as it leans into health and wellness
Business

Starbucks expands test of coconut water beverages as it leans into health and wellness

Starbucks’ Coco Matcha and Coco Cold Brew drinks. Courtesy: Starbucks Starbucks will expand its test of coconut water beverages to hundreds of more stores, as it leans further into health and wellness. Starting Thursday, the coffee giant will test its Coco Matcha and Coco Cold Brew drinks in more than 400 stores across major cities […]

Read More
Walmart will report earnings before the bell. Here’s what to expect
Business

Walmart will report earnings before the bell. Here’s what to expect

The logos of Walmart and Sam’s Club are pictured in Cuautitlan Izcalli, Mexico, January 30, 2025. Raquel Cunha | Reuters Walmart will report quarterly earnings on Thursday, as economists and investors try to gauge how U.S. consumers are responding to President Donald Trump’s decision to raise tariffs on dozens of countries across the globe. Here’s […]

Read More