Salesforce.com (NYSE: CRM)
Salesforce.com announced impressive fiscal third-quarter earnings after markets closed on Tuesday.
Salesforce edged above expectations of Wall Street analysts and raised its revenue and earnings-per-share guidance for the current quarter, pushing its shares up more than 5% in the after-hours session.
Shares of the cloud enterprise software company closed the regular trading session with a gain of 0.89% to change hands at $127.54.
CRM Earnings & Outlook
Salesforce posted earnings of $105 million, or $0.13 per share, down from $107 million, or $0.14 per share, in the same three months last year. Earnings, adjusted for special items came to $0.61 per share during the quarter, beating expectations for adjusted earnings of $0.50 per share.
Total revenue during the quarter increased 26% from $2.7 billion in same period a year ago to $3.39 billion. Analysts had called for total revenue of $3.37 billion, according to figures compiled by Refinitiv. Americas generated 71% of total revenue, while Asia Pacific and Europe accounted for 10% and 19%, respectively.
Support and subscription revenues were $3.17 billion, up 26% in the prior year period. Revenue from professional and other services climbed 15% year over year to $224 million. Cash generated from operations increased by 14% from the earlier year quarter to $143 million. Marketable securities, cash equivalents and total cash ended the quarter at $3.45 billion.
Looking ahead, the company expects fourth quarter revenue to be in the range of $3.55 billion to $3.56 billion, while analysts polled by Refinitiv forecast revenue of $3.52 billion. Salesforce also expects fourth quarter adjusted earnings of between $0.54 and $0.55 per share, below average consensus of $0.57 per share.
Salesforce CEO Comments
“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,” said Keith Block, co-CEO, Salesforce. “Companies across every industry, in every geography have a mandate to digitally transform their businesses and are turning to Salesforce as a strategic partner.”
Marc Benioff, chairman and co-CEO, Salesforce added, “I’m thrilled that Salesforce will be the fastest enterprise software company in history to reach $16 billion in revenue. I would like to thank all of our Ohana who make everything we do possible.”
Salesforce Company Profile
Salesforce.com, Inc. engages in the design and development of cloud-based enterprise software for customer relationship management. Its solutions include sales force automation, customer service and support, marketing automation, digital commerce, community management, collaboration, industry-specific solutions, and salesforce platform.
It also provides guidance, support, training, and advisory services. The company was founded by Marc Russell Benioff, Parker Harris, David Moellenhoff, and Frank Dominguez in February 1999 and is headquartered in San Francisco, CA – CNN Money
