Salesforce (NYSE:CRM) is set to announce its fourth-quarter fiscal 2024 earnings on February 28.

The company anticipates total revenues for the quarter to fall between $9.18 billion and $9.23 billion, with non-GAAP earnings projected to be in the range of $2.25 to $2.26 per share.

The Consensus Estimate for revenues stands at $9.21 billion, representing a 9.9% increase from the previous year’s fourth-quarter figure. The consensus estimate for earnings is $2.26 per share, indicating a 34.5% year-over-year growth.

Salesforce has consistently outperformed the Consensus Estimate in the past four quarters, with an average surprise of 10.9%.

Factors likely to have influenced Salesforce’s quarterly performance include a strong demand environment as businesses undergo digital transformations. The company’s focus on delivering tailored products to meet customer needs is expected to drive revenue growth. Products like Trailhead and myTrailhead have supported companies in their transformation efforts and business expansion using modern technology.

Salesforce’s emphasis on offering integrated solutions to address customer challenges is expected to be a significant growth driver. The company’s ongoing efforts to incorporate generative AI tools into its products are aimed at staying ahead of competitors and meeting customer demand for AI-enabled cloud solutions.

Salesforce’s relationships with leading brands, along with growth opportunities in the public sector, are likely to have contributed to its fourth-quarter performance. The acquisitions of Spiff and Airkit.ai are expected to have further bolstered its top line. Additionally, growth across its cloud service offerings, including Sales, Service, Platform & Other, Marketing & Commerce, and Data, is expected to have driven subscription revenues.

However, challenges such as reduced software spending by small and medium businesses due to macroeconomic uncertainties stemming from the pandemic and geopolitical issues, as well as competition from Oracle and Microsoft, may have impacted Salesforce’s fourth-quarter performance. Forex headwinds are also a concern.

Despite these challenges, Salesforce’s restructuring efforts, including workforce reductions, are likely to have improved profitability. In the third quarter, the company’s non-GAAP operating margin expanded to 31.2% from 22.7% in the year-ago quarter, driven by improved gross margins and the benefits of restructuring initiatives.

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