Services

How Analysts View Salesforce After Earnings

Chris Lange

Published: May 22, 2016 10:15 am

Last Updated: January 13, 2020 7:44 am

When Salesforce.com Inc. (NYSE: CRM) announced its earnings, investors were excited that it has raised fiscal 2017 guidance. As a result of this earnings report, analysts hiked their price targets for this stock.

24/7 Wall St. has included some highlights from the earnings report, as well as what analysts are saying about Salesforce after the fact.

Revenue rose 27% to $1.92 billion, but this would have been up 28% on a constant currency measure. Deferred revenue, a measure of future orders, was up 31% to $4.01 billion. Thomson Reuters had a consensus revenue estimate of $1.89 billion.

Its second-quarter revenue guidance is $2.005 billion to $2.015 billion, versus a $1.98 billion consensus estimate. On forward guidance, Salesforce sees fiscal year 2017 revenue guidance of $8.16 billion to $8.20 billion, versus a consensus number of $8.12 billion. Unbilled deferred revenue of approximately $7.6 billion, up 27%, is expected.

The revenue breakdown showed additional gains on both key metrics in the first quarter. Subscription and support revenues rose 26% to $1.78 billion, and professional services (and other) revenues were up 33% to $141 million.

24/7 Wall St.
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