for Between the Lines
| December 3, 2019 — 21:31 GMT (21:31 GMT)
| Topic: Cloud
Salesforce reported better-than-expected third quarter financial results on Tuesday but its earnings projection for the current quarter and fiscal year fell below estimates. The CRM software giant delivered non-GAAP earnings of 75 cents per share on revenue of $4.5 billion, up 33% year over year.
Wall Street was looking for earnings of 66 cents per share with revenue of $4.45 billion.
As for the outlook, analysts are looking for earnings of 62 cents a share on revenue of $4.72 billion for the current quarter. Salesforce responded with a revenue range of $4.743 billion to $4.753 billion and earnings between 54 and 55 cents per share.
For the full-year, Salesforce expects earnings between $2.82 and $2.84 per share on revenue between $16.99 billion and $17 billion. Analysts expect full-year earnings of $2.86 per share on revenue of $16.9 billion. Salesforce stock was down around 2% in late trading.
Elsewhere on the balance sheet, the company reported a Q3 net loss of $109 million, or 12 cents per share. Subscription and support revenues increased 34% annually to $4.24 billion. Professional services and other revenues totaled $274 million, up 22% year over year.
Breaking subscription revenues down by segment, Sales Cloud revenue was $1.17 billion, Service Cloud revenue was $1.14 billion, Marketing and Commerce Cloud revenue was $640 million, and Salesforce platform and other revenue was $1.29 billion.
Salesforce says it’s now targeting $34 billion to $35 billion in revenue by 2024, organically doubling its revenue over five years.
“We’re now on track to double our revenue in five years,” said Salesforce co-CEO Marc Benioff, in a statement. “With Customer 360, only Salesforce is providing companies with a single source of truth, bringing them even closer to their customers across every touchpoint.”
Tech Earnings
Microsoft’s commercial cloud fuels better-than-expected Q1 results
AMD meets Q3 earnings expectations
Intel delivers strong Q3 as data businesses drive growth
eBay posts solid Q3, concludes operating review
Amazon delivers mixed Q3 results as AWS growth slows
Alphabet Q3 misses earnings targets
T-Mobile Q3: 1.7 million net adds, earnings better than expected, revenue shy of estimates
PayPal Q3 tops estimates as active user base climbs to 295 million
Twitter Q3 disappoints as does Q4 outlook amid ad business woes
Verizon’s Q3 insulated by B2B wireless net adds as it scales 5G rollout
Related Topics:
Salesforce.com
Digital Transformation
Data Centers
CXO
Innovation
Storage
for Between the Lines
| December 3, 2019 — 21:31 GMT (21:31 GMT)
| Topic: Cloud