Technology
Salesforce.com Delivers on Earnings and Guidance
May 18, 2016 4:21 pm
Last Updated: January 13, 2020 7:52 am
Salesforce.com, Inc. (NYSE: CRM) has announced its earnings, and investors are excited that it has raised fiscal 2017 guidance. 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 estimates of $1.89 billion in revenue.
Its second quarter revenue guidance is $2.005 billion to $2.015 billion, versus a $1.98 billion estimate. On forward guidance, Salesforce.com sees Fiscal Year 2017 revenue guidance of $8.16 billion to $8.20 billion, versus a consensus number of $8.12 billion from Thomson Reuters. – and unbilled deferred revenue of approximately $7.6 billion, up 27%.
Salesforce.com said that its operating cash flow was up 43% to $1.05 billion. Its reported earnings per share was $0.24 versus a consensus estimate of $0.23 EPS.
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.
Apparently Salesforce.com was overly chatty on its commentary:
Salesforce.com shares closed up 1.4% at $77.87, and its stock was up 5% at $82.00 in the after-hours trading session on Wednesday. Its 52-week range is $52.60 to $82.90.
If these after-hours trading levels hold up, the consensus analyst price target of $90.60 may continue to rise. With a market cap of over $52 billion at the close of trading (not including the 5% after-hours gain), it needs to be kept in mind that Salesforce.com is still valued at about 77 times expected earnings for the year ahead.
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