Salesforce tops analyst's Q1 expectations

CRM giant reports non-GAAP earnings of 93 cents per share as it smashes Wall Street predictions of 61 cents

5Jun

Salesforce reported financial results for 1Q19 that were significantly better than expected, revealing non-GAAP earnings of $0.93 per share on the $0.61 predicted by Wall Street analysts.

Overall, the CRM colossus's revenue for the first quarter of the year was $3.74bn, up 24% year on year, beating analysts' expectations of a $3.68bn revenue. Its 1Q19 net income was a respectable $392m, while subscription and support revenues increased 24% annually to $3.5bn. Professional services and other revenues were also on the up, increasing by 23% year over year to total $241m.

"I am thrilled with our results this quarter, and I am especially excited to have delivered record revenue in 1Q19 and operating cash flow of almost $2bn, up 34% year over year," remarked Salesforce chairman and co-CEO Marc Benioff. "We have a massive opportunity in front of us and are well positioned for long-term growth."

Keith Block, co-CEO of Salesforce, added: "Our strong revenue growth in the quarter reflects the strength of our business and the tremendous demand we're seeing from customers worldwide. Companies of every size and industry are undergoing a digital transformation to better serve their customers and they are choosing Salesforce as their partner."

Off the back of its strong financial reports, the San Francisco-based firm has raised its full-year 2020 profit forecast to be between $2.88–$2.90 a share, with revenue of between $16.1bn–$12.25bn.

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