Salesforce stocks climb as guidance tops expectations

by Jonathan Adams
Salesforce

The enterprise software maker reported earnings of $1.48 per share, including a 43-cent investment gain

Salesforce late Wednesday reported July quarter per-share earnings and revenue ahead of analyst estimates, including a small contribution from recently acquired Slack Technologies. CRM stock gained as Salesforce earnings guidance came in above Wall Street targets.

Salesforce reported earnings of $1.48 per share, including a 43-cent investment gain, on an adjusted basis. Moreover, revenue jumped 23% to $6.34 billion, including the acquisitions of Slack and Accumen which closed on July 21.

A year earlier, Salesforce earnings were $1.44, including investment gains on revenue of $5.15 billion. Excluding investment gains, Salesforce earned $1.05 in the July quarter versus 68 cents a share a year earlier.

Analysts expected Salesforce to report earnings of 92 cents a share on sales of $6.24 billion.

The enterprise software maker said current remaining performance obligations, or CRPO bookings, rose 23% to $18.7 billion. That topped analyst estimates of $18.23 billion. CRPO bookings are an aggregate of deferred revenue and order backlog.

CRM stock gained 1.3% to 264.27 in extended trading on the stock market today. Heading into the earnings report, Salesforce stock traded nearly 4% below an entry point of 271.02.

Salesforce’s revenue outlook for the current quarter ending in October came in above expectations. The software maker expects revenue between $$6.78 billion to $6.79 billion compared with estimates of $6.65 billion.

The company forecast earnings in a range of 91 cents to 92 cents a share against analysts’ projections of a profit of 82 cents a share.

Salesforce sells software under a subscription model. Its software helps businesses organize and handle sales operations and customer relationships.



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