salesforce.com Q1 Profit Tops Estimates, Lifts Sales Forecast

Shares of

climbed more than 4 percent in after-hours trading after the company reported better-than-expected earnings for the first quarter and lifted its sales outlook for the full year. The San Francisco, California-based company reported quarterly net income of $4.09 million, or 0.01 per share, versus a year-ago loss of $96.91 million, or $0.16 per share. Its adjusted earnings came in at $0.16 per share. Its revenue climbed 23 percent year-over-year to $1.51 billion. However, analysts were expecting earnings of $0.14 per share on revenue of $1.51 billion. The average estimate among 63 Estimize users was for earnings of $0.14 per share and revenue of $1.51 billion. Deferred revenue on the balance sheet as of April 30, 2015 rose 31 percent year-over-year to $3.06 billion. Subscription and support revenue rose 22 percent to $1.41 billion in the quarter, while professional services and other revenue gained 33 percent to $106 million. The company ended the quarter with total cash, cash equivalents and marketable securities of $1.92 billion. "Salesforce has surpassed the $6 billion annual revenue run rate faster than any other enterprise software company, and our current outlook puts us on track to reach a $7 billion revenue run rate later this year," said Marc Benioff, Chairman and CEO, Salesforce. "Our goal is to be the fastest to reach $10 billion in annual revenue." For the second quarter, salesforce.com expects adjusted earnings of $0.17 to $0.18 per share, versus analysts' estimates of $0.17 per share. The company also projects Q2 revenue of $1.59 billion to $1.60 billion, versus analysts' expectations of $1.59 billion. It projects full-year earnings of $0.69 to $0.71 per share on revenue of $6.52 billion to $6.55 billion for the year. Analysts had expected earnings of $0.69 per share on revenue of $6.51 billion. salesforce.com shares gained 4.05 percent to $73.00 in the after-hours trading session.