Improved results in the Q4 earnings report have allowed Salesforce to keep activist investor Elliott Management from pursuing changes on the company’s Board of Directors. This was confirmed by both Elliott and Salesforce on Monday.
Elliott revealed a multi-billion investment in Salesforce earlier this year and was recently campaigning for significant changes at the company alongside other activist investors. As part of those efforts, the investment management firm wanted to nominate its own candidates for the board.
However, Salesforce’s recent Q4 earnings report showed that the company bounced back from the challenging 2022. This included $7.33 billion in revenue, marking a 26 percent year-over-year increase. Its subscription and support revenues were 25 percent up year-over-year, landing at $6.83 billion.
Salesforce also initiated various other changes that made Elliott optimistic about the future, including “cost-cutting, boosting share buybacks, and disbanding a mergers-and-acquisition committee.”
“I have great respect for Marc [Salesforce co-founder and CEO Marc Benioff] and his team, and I have become deeply impressed by their strong ongoing commitment to profitable growth, responsible capital return, and an ambitious shareholder value creation plan,” said Elliott managing partner Jesse Cohn in a statement.
Salesforce shares have been 41 percent up year-to-date. The stock has been hovering at around $190 per share on Monday morning.