Technology

What's Holding Salesforce Back in Q1

Salesforce.com, Inc. (NYSE: CRM) released fiscal first-quarter financial results after markets closed Tuesday. The firm said that it had $0.70 in earnings per share (EPS) and $4.87 billion in revenue, compared with consensus estimates that called for $0.69 in EPS and $4.85 billion in revenue. The same period from last year had $0.93 in EPS and $3.74 billion in revenue.

During the quarter, revenues grew 30% year over year, and 31% in constant currency.

Subscription and support revenues totaled $4.58 billion, an increase of 31%. Professional services and other revenues increased by 20% to $290 million.

Looking ahead to the fiscal second quarter, the company expects to see EPS in the range of $0.66 to $0.67 and revenue in the range of $4.89 billion to $4.90 billion. Consensus estimates are calling for $0.75 in EPS and $5.05 billion in revenue for the coming quarter.

Total cash, cash equivalents and marketable securities at the end of the first quarter were $9.80 billion.

Marc Benioff, chairman & co-CEO of Salesforce, commented:

Our results, amidst this global crisis, demonstrated our ability to execute at speed, innovate at scale and the strength of our business model. We made long-term investments in keeping our employees safe, supporting our customers, delivering crucial innovation like Work.com, and helping our communities with PPE, grants, and technology. The pandemic showed us that digital is an imperative for every company, and we’re confident Salesforce will continue to accelerate as we bring our customers into the new normal.

Shares of Salesforce closed Thursday at $181.37, with a 52-week range of $115.29 to $195.72. The consensus analyst price target is $194.38. Following the announcement, the stock was initially down 2.5% at $176.77 in the after-hours session.