Shares of Salesforce (CRM) fell in after-hours trading on Tuesday after the company reported a robust quarter, but forward guidance was lighter than Wall Street expectations.
Co-founder and CEO Marc Benioff explained the conservative guidance to Jim Cramer, citing a shift in the foreign exchange atmosphere. In September, Benioff also pointed to foreign exchange for weaker forward guidance back in September, due to Brexit and said it resulted in a loss of $150 million in revenue.
"We just reported an unbelievable year. But our results can be tempered by the foreign exchange environments. So we are appropriately conservative when we give you those numbers," Benioff told the "Mad Money" host.
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Salesforce reported an adjusted quarterly profit of 28-cents per share, versus 25-cents per share expected on revenue of $2.29 billion, versus the expectation of $2.28 billion.
"We have doubled the company in the last three years, we have tripled the cash flow and consistently increased the margin. Now we are going to do that again over the next three years," Benioff said.
After the election in November, many investors sold technology stocks tied to growth partially because many Silicon Valley CEOs campaigned against President Trump. Also because secular growth stocks tend to become less attractive when the economy accelerates, which is exactly what the President is trying accomplish.
However after the initial sell-off, many tech stocks have come roaring back, including Salesforce which has had a 16 percent gain in the past two months.
Benioff reflected on Trump's immigration agenda, sharing that his Great Grandfather Isaac Benioff came to the U.S. as a refugee and was warmly accepted.
"In the last couple of months we have had some mixed results out of Washington and immigration is one of the lowlights … If you like Salesforce, that came out of Isaac Benioff. But if you like 'Game of Thrones' that came out of my cousin David Benioff. We had the same Great Grandfather," Benioff said.
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