Salesforce.com Inc (NYSE: CRM)
Salesforce.com shares shed more than $5.60 during the extended trading session on Wednesday, even after the company reported better-than-expected financial results for the three months ended July 31, 2018.
Popular for its customer-management services, salesforce.com posted a profit of $299 million, or $0.39 per share, as revenue jumped 27% to $3.28 billion.
Its Platform and Other segment saw revenue jump 54% year-over-year to $712 million, while revenue from its Sales Cloud segment grew 12.7% to slightly over $1 billion.
The San Francisco, California-based company has also raised its third-quarter and full-year earnings and revenue outlook. Its stock, which closed the day at $154.80 after climbing 1.2%, has gained nearly 51% since the beginning of the year.
CRM Earnings & Outlook
Net income during the quarter increased to $299 million, or $0.39 per share, from $46 million, or $0.06 per share, in the second quarter of the previous year.
After stripping costs such as stock-based compensation and amortization, the company earned $0.71 per share topping analyst estimates of $0.47 per share from FactSet.
Net sales came in at $3.28 billion compared with $2.58 billion in the same period last year, and ahead of analyst estimates of $3.23 billion.
Looking ahead, the retailer estimates diluted earnings of between $0.49 to $0.50 per share for its third quarter. The company is also expecting net sales of between $3.36 billion and $3.37 billion.
For the full year, the company sees diluted earnings of between $2.50 to $2.52 per share and sales of $13.13 billion to $13.18 billion.
FactSet, based on analyst predictions, expects the company to post third-quarter diluted earnings of $0.53 per share on $3.35 billion sales. The analysts are also for diluted earnings of $2.31 per share $13.13 billion revenue for the full year.
Salesforce.com CEO Comments
Commenting on the results, Salesforce co-chief executive officer Keith Block said, “Salesforce revenue grew 27% to almost $3.3 billion in the second quarter, with excellent performance across our clouds, industry segments and geographies. With this strong quarter, we’re well on our way to our next milestone of $23 billion in revenue in FY22.”
Salesforce chairman and co-chief executive officer Marc Benioff also issued the following remarks, “Salesforce’s vision and position as the #1 sales, service, marketing and CRM platform is enabling our customers to stay ahead and thrive in this Fourth Industrial Revolution. We are guided by our values as we ensure our technology drives our customers’ success and improves the state of the world.”
Salesforce.com Inc Company Profile
Salesforce.com, Inc. is engaged 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. –CNNMoney
