Baird says salesforce.com, inc. CRM shows positive momentum ahead of a critical fourth quarter with a solid third quarter beat and increase to its FY 2017 outlook.
The company reported billings growth of 19 percent, handily topping consensus of 13 percent, and implied fourth quarter billings growth guidance of 24 percent, also above consensus of 21 percent.
“That was the first time in eight quarters implied-next-quarter Billings guidance exceeded consensus,” analyst Steven Ashley wrote in a note.
Among business units, Sales Cloud continued to grow at a solid 13 percent and Marketing Cloud rose 46 percent. However, Service Cloud saw a slight slowdown at 26 percent and Salesforce 1 Platform also slowed a bit in the third quarter to 38 percent.
That said, Salesforce called out strength in large seven-figure deals, and introduced initial FY 2018 revenue guidance of $10.1 billion, directly in line with consensus, and implying 21 percent year-over-year growth.
At last check, shares of Salesforce rose 3.96 percent to $78.17. Ashley has an Outperform rating on the stock, with a price target of $90.
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