Salesforce Beats On Earnings And Revenue In Q1
Salesforce (NYSE: CRM), announced results for its fiscal first quarter, ended April 30, 2017, today. The company reported a net loss of $9.2 million, or 1 cent per share, in the latest quarter, compared with a profit of $38.8 million, or 6 cents per share, a year earlier. On an adjusted basis, Salesforce reported earnings per share of 28 cents, more than the 26 cents EPS analysts were looking for.
Salesforce reported first quarter revenue of $2.39 billion, up 25 percent year-over-year. This was higher than the $2.35 billion analysts were expecting. Its first quarter operating cash flow was $1.23 billion, up 17 percent year-over-year.
Subscription and support revenues were $2.2 billion, an increase of 24 percent year-over-year. Professional services and other revenues were $187 million, an increase of 32 percent year-over-year. Total cash, cash equivalents and marketable securities were $3.22 billion at the end of the quarter.
The company now expects its results for the year to be better than previously expected. The company raised its FY18 revenue guidance from $10.25 billion to $10.30 billion. Operating cash flow growth is projected to be 20 percent to 21 percent year-over-year.
In February, the company had projected GAAP earnings of 5 cents to 7 cents a share and non-GAAP profits of $1.27 to $1.29. Salesforce now expects to post full-year non-GAAP EPS of $1.28 to $1.30 and for full-year GAAP EPS to range from 6 cents to 8 cents. The stock is flat in after-hours trading, down just under 1 percent.
Salesforce announced today that it holds the title of No. 1 CRM Provider for the fourth consecutive year. The title was bestowed by International Data Corporation (IDC) in its latest Worldwide Semiannual Software Tracker. Based on CRM revenue in 2016, Salesforce had the highest revenue gain and market share growth than any other CRM vendor. Salesforce increased its market share in 2016 by more percentage points than the rest of the top ten CRM vendors combined.
Salesforce is the fastest-growing top five enterprise software company in the world today. It is also the leader in sales applications, customer service applications and marketing applications, by market share. Salesforce currently facilitates more than 50 billion customer interactions a month for a global community of more than 150,000 customers.
Last year, Salesforce was named the Innovator of the Decade by Forbes. Salesforce president and chief product officer Alex Dayon said, “Our continued leadership in the CRM market validates Salesforce’s unparalleled ability to empower companies to deliver amazing experiences that transform customer relationships.”
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