Salesforce (CRM) Posts Q3 Earnings Beat, Revenue Soars 25%

Salesforce.com, Inc. ( (NYSE:CRM) ) just released its third-quarter fiscal 2018 financial results, posting non-GAAP earnings of 39 cents per share and revenues of $2.68 billion.

Currently, CRM is a Zacks Rank #3 (Hold) and is down 1.05% to $107.66 per share in after-hours trading shortly after its earnings report was released.

Salesforce:

Beat earnings estimates. The company posted non-GAAP earnings of $0.39 per share, beating the Zacks Consensus Estimate of $0.37. Salesforce also reported GAAP earnings of $0.07 per share.

Beat revenue estimates. The company saw revenue figures of $2.68 billion, beating our consensus estimate $2.65 billion.

Salesforce’s revenue results marked a year-over-year increase of 25%. Deferred revenue of $4.39 billion was up 26% year-over-year. Subscription and support revenues were $2.49 billion, an increase of 25% from the prior-year quarter. Professional services and other revenues were $194 million, a gain of 20% from last year.

“Salesforce delivered a record third quarter, and we're on a path to exceed $20 billion faster than any enterprise software company in history,” said CEO Marc Benioff. “With this phenomenal growth, we are building a company for the ages, creating value for our Trailblazers – our customers, employees, investors and communities – while helping make the world a better place for decades to come.”

Management said that it expects fourth-quarter revenue in the range of $2.801 billion to $2.811 billion. Our current consensus estimate is calling for revenue of $2.79 billion. Non-GAAP diluted earnings per share is projected to be $0.32 to $0.33 per share, which is in-line with our current consensus estimate of $0.33.

The company also announced preliminary guidance for fiscal 2019. Salesforce expects revenue in the range of $12.45 billion to $12.50 billion, which would represent an increase of 19% to 20% from its fiscal 2018 projections. Our current consensus estimate is calling for revenues of $12.50 billion in fiscal 2019.

Here’s a graph that looks at CRM’s latest earnings surprise history:

Salesforce.com Inc Price, Consensus and EPS Surprise

Salesforce.com Inc Price, Consensus and EPS Surprise | Salesforce.com Inc Quote

Salesforce.com is the market and technology leader in on-demand business services. The company's Salesforce suite of on-demand CRM applications allows customers to manage and share all of their sales, support, marketing and partner information on-demand.

Check back later for our full analysis on CRM’s earnings report!

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