How Salesforce Won on Earnings
Salesforce.com reported better-than-expected quarterly results after the markets closed on Thursday.
When Salesforce.com Inc. (NYSE: CRM) reported its most recent quarterly results late on Thursday, the company said that it had $0.28 in earnings per share (EPS) and $2.39 billion in revenue. That compared with consensus estimates of $0.26 in EPS and revenue of $2.35 billion.
Subscription and support revenues were $2.2 billion, an increase of 24% from last year, and professional services and other revenues totaled $187 million, an increase of 32% year over year.
Deferred revenue totaled $5.04 billion, up 26%, or 27% in constant currency. Unbilled deferred revenue ended the first quarter at roughly $9.6 billion, 26% higher than last year.
In terms of guidance for the fiscal second quarter, the company expects to see revenue between $2.51 billion and $2.52 billion, with EPS in the range of $0.31 to $0.32. The consensus estimates call for $0.31 in EPS and $2.48 billion in revenue.
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During the quarter, cash generated from operations was $1.23 billion, an increase of 17%. While on the books, total Salesforce cash, cash equivalents and marketable securities finished the quarter at $3.22 billion.
Marc Benioff, board chair and chief executive of Salesforce, commented:
With our outstanding first quarter results, we are thrilled to be raising our fiscal 2018 revenue guidance by $100 million and raising our GAAP and non-GAAP earnings per share expectations for the year,” “Salesforce has once again been named the CRM market leader, and we continue to grow our share in CRM — the fastest growing enterprise software market.
Shares of Salesforce were last seen up 1% at $88.62 on Friday, with a consensus analyst price target of $97.89 and a 52-week trading range of $64.43 to $90.95.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
