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


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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