Market Overview

Salesforce Q3 Profit Tops Estimates, Shares Rise

Share:

Shares of salesforce.com, inc. (NYSE: CRM) surged over 3 percent in after-hours trading after the company reported stronger-than-expected earnings for the third quarter on Wednesday.

The San Francisco, California-based company reported a quarterly loss of $25.2 million, or $0.04 per share, versus a year-ago loss of $38.9 million, or $0.06 per share. Excluding items, the company's adjusted earnings came in at $0.19 per share.

Its total revenue climbed 24 percent year-over-year to $1.71 billion. However, analysts were expecting earnings of $0.19 per share on revenue of $1.7 billion.

The average estimate among 184 Estimize users was for earnings of $0.20 per share and revenue of $1.71 billion.

Subscription and support revenue surged 24 percent to $1.60 billion, while professional services and other revenue jumped 22 percent year-over-year to $116 million.

At the end of the quarter, the company had $2.30 billion in total cash, cash equivalents and marketable securities.

"Salesforce delivered yet another exceptional quarter with 27% constant currency growth in revenue and 30% constant currency growth in deferred revenue," said Marc Benioff, Chairman and CEO, Salesforce. "I'm delighted to announce that we expect to deliver our first $8 billion year during our fiscal year 2017, which puts us well on the path to reach $10 billion faster than any other enterprise software company."

The company expects Q4 adjusted earnings of $0.18 to $0.19, on revenue of $1.782 billion to $1.792 billion. Analysts projected earnings of $0.19 per share on revenue of $1.78 billion.

For FY16, Salesforce projects adjusted earnings of $0.74 to $0.75 per share, on revenue of $6.64 billion to $6.65 billion. Analysts expected earnings of $0.73 per share on revenue of $6.62 billion.

The company projects FY17 revenue of $8.0 billion to $8.1 billion.

Salesforce shares gained 3.42 percent to $80.04 in the after-hours trading session.

Posted-In: lossEarnings News Guidance

 

Related Articles (CRM)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com