Why Salseforce Is Reporting a Record Q1
Salesforce released its fiscal first quarter after the markets closed on Tuesday. The firm said that it had $0.93 in earnings per share (EPS) and $3.74 billion in revenue, compared with consensus estimates that called for $0.61 in EPS and…
Salesforce.com, Inc. (NYSE: CRM | CRM Price Prediction) released fiscal first quarter after markets closed Tuesday. The firm said that it had $0.93 in earnings per share (EPS) and $3.74 billion in revenue, compared with consensus estimates that called for $0.61 in EPS and $3.68 billion in revenue. The same period from last year had $0.74 in EPS and $3.01 billion in revenue.
In terms of the revenue breakdown, subscription and support revenues were $3.50 billion in the latest period, an increase of 24% year over year, while professional services and other revenues were $241 million, an increase of 23%.
Unearned revenue on the balance sheet as of April 30, 2019, was $7.59 billion, an increase of 22.3% year over year.
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Looking ahead to the fiscal second quarter, Salesforce expects to see EPS in the range of $0.46 to $0.47 and revenue between $3.94 billion and $3.95 billion. The consensus estimates are $0.66 in EPS and $3.94 billion in revenue for the quarter.
Marc Benioff, board chair and co-CEO, commented:
I am thrilled with our results this quarter, and I am especially excited to have delivered record revenue in Q1 and operating cash flow of almost $2 billion, up 34% year-over-year. We have a massive opportunity in front of us and are well-positioned for long-term growth as the world’s #1 CRM.
Shares of Salesforce closed Tuesday at $150.76, with a 52-week range of $113.60 to $167.56. The stock has a consensus analyst price target of $182.18. Following the announcement, the stock was up 3.5% at $156.00 in the after-hours trading session.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
