Cloud enterprise software firm Salesforce.com reported better than expected adjusted fiscal second quarter earnings after the market Wednesday. $CRM hit an all-time high today before the report however lowered 3Q guidance below estimates .
Cloud enterprise software firm Salesforce.com reported better than expected adjusted fiscal second quarter earnings after the market Wednesday. $CRM hit an all-time high today before the report however lowered 3Q guidance below estimates .
CRM cloud software has been one of the fastest growing tech spaces and Salesforce contues to add tier one customers. Their major competitor is Oracle $ORCL.
salesforce.com, inc. NYSE: CRM Beat Earnings After Close Thursday
$0.71 Beat $0.47 EPS And $3.28 billion Beat $3.23 billion forecast in revenue.
Earnings
- Salesforce.com net income increased six times to $299 million or $0.39 per share. Excluding special items, earnings per share almost doubled to $0.71 well ahead of analyst views for 47 cents.
- $CRM reported revenue of $3.28 billion, up 27% from the year-ago period and above predictions of $3.23 billion.
salesforce.com, inc. NYSE: CRM
Market Reaction – After hours $149.70 −$5.10 (-3.29%)
Highlights
- Subscription and support revenues were $3.06 billion, an increase of 28% year-over-year.
- Professional services and other revenues were $221 million, an increase of 14% year-over-year.
- Salesforce Platform reporting the highest growth of 54%.
- Geographically, the Americas, which contributes 71% to the company’s revenue, jumped 25%
- Europe posted the highest growth of 35% for the quarter.
Outlook
Salesforce lowered it’s third-quarter outlook on adjusted earnings in the range of 49 cents to 50 cents a share. This was below expectations of 53 cents. Salesforce.com revenue guidance is in the range of $3.35 billion to $3.65 billion. The midpoint was above analyst views for $3.35 billion.
For the fiscal year 2019, the company raised its revenue outlook to a range of $13.125 billion to $13.175 billion from the prior estimate of $13.075 billion to $13.125 billion. GAAP EPS is now expected to be in the range of $0.97 to $0.99 and non-GAAP EPS is now predicted to be $2.50 to $2.52.
Source: Saleforce.com, AlphaStreet