Salesforce.com Inc (NYSE: CRM) popped nearly 3% in after-hours trading session Tuesday, after the San Francisco-based company improved its full-year earnings outlook and posted record high first-quarter revenue.
The cloud computing giant generates most of its revenues from cloud powered subscriptions as well as services that businesses use to analyze, organize, and store data.
Demand for its MuleSoft offerings rose in the latest quarter, months after the company spent the tidy sum of $6.5 billion to acquire the data connectivity software vendor.
Salesforce stock, which has jumped more than 9.5% since the beginning of the year, ended the regular session with a gain of 3.97% to $150.81.
CRM Earnings & Outlook
Net income for the three months to April 29, 2019 was $392 million, or $0.49 per share, up from $344 million, or $0.46 per share, in the earlier period. On an adjusted basis, earnings were $0.93 per share surpassing the $0.61 per share that analysts surveyed by Refinitiv expected.
Revenue came to $3.74 billion, an increase of 24% from $3.01 billion in the same period last year. On average, analysts polled by Refinitiv were expecting revenue of $3.69 billion in the quarter.
Looking into the second quarter, Salesforce hopes to report adjusted earnings of between $0.46 to $0.47 per share on revenue of between $3.94 billion to $3.95 billion. For the full year, the company forecasts earnings of $2.88 to $2.90 per share on revenue of $16.10 billion to $16.25 billion.
On average, analysts expect it to come out with second-quarter adjusted earnings of $0.65 per share on revenue of $3.94 billion, and full-year adjusted earnings of $2.67 per share on revenue of $16.14 billion.
Salesforce CEO Comments
“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,” commented Marc Benioff, chairman and co-CEO, Salesforce. “We have a massive opportunity in front of us and are well-positioned for long-term growth as the world’s #1 CRM.”
“Our strong revenue growth in the quarter reflects the strength of our business and the tremendous demand we’re seeing from customers worldwide,” said Keith Block, co-CEO, Salesforce. “Companies of every size and industry are undergoing a digital transformation to better serve their customers and they are choosing Salesforce as their partner.”
Salesforce.com Inc Profile
Salesforce.com provides enterprise cloud computing solutions, including Sales Cloud, the company’s main customer relationship management software-as-a-service product.
Salesforce.com also offers Service Cloud for customer support, Marketing Cloud for digital marketing campaigns, Commerce Cloud as an e-commerce engine, the Salesforce Platform, which allows enterprises to build applications, and other solutions, such as MuleSoft for data integration.