When Salesforce.com Inc. (NYSE: CRM) released its fiscal third-quarter financial results after the markets closed on Tuesday, the company posted $0.61 in earnings per share (EPS) and $3.39 billion in revenue. That compared with consensus estimates of $0.50 in EPS and revenue of $3.37 billion, as well as the $0.39 per share and $2.68 billion reported in the same period of last year.
During the latest quarter, revenues increased by 26% year over year, as well as 26% in constant currency. Subscription and support revenues were $3.17 billion, an increase of 26%, and Professional services and other revenues were $224 million, an increase of 15%.
Separately, unearned revenue was $5.38 billion, an increase of 25% from last year and 26% in constant currency.
Looking ahead to the fiscal fourth quarter, the company expects to see EPS in the range of $0.54 to $0.55 and revenue between $3.551 billion and $3.561 billion. Consensus estimates call for $0.57 in EPS and $3.53 billion in revenue for the quarter.
Keith Block, co-CEO of Salesforce, commented:
Given the strength of this quarter’s results and the incredible customer demand we are seeing, we are again raising our FY19 revenue guidance and initiating our full year fiscal 2020 revenue guidance at $16 billion at the high end of the range. Companies across every industry, in every geography have a mandate to digitally transform their businesses and are turning to Salesforce as a strategic partner.
Shares of Salesforce were last seen up nearly 5% at $133.30 on Wednesday, with a consensus analyst price target of $172.50 and a 52-week trading range of $98.68 to $161.19.