Home / Technology / Salesforce beats Q3 expectations and predicts record $8B 2017

Salesforce beats Q3 expectations and predicts record $8B 2017


Marc Benioff, CEO of Salesforce, which has reported its third quarter earnings for 2015. (Justin Sullivan, Getty Images)

Marc Benioff, CEO of Salesforce, which has reported its third quarter earnings for 2015. (Justin Sullivan, Getty Images)

SAN FRANCISCO – Cloud-based CRM (customer relationship management) giant Salesforce beat third-quarter expectations Wednesday, announcing earnings per share of 21 cents on revenue of $1.71 billion. Analyst estimates were 19 cents per share on $1.7 billion.

Salesforce shares jumped 3% in after hours trading to $80. Valued at $50 billion, Salesforce took an early lead in providing sales-focused companies with cloud-based solutions to their various customer interaction needs.

CEO Marc Benioff said in a statement that the company expected to deliver its “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 also initiated fourth quarter revenue guidance of $1.792 billion, up from $1.782 billion, and raised its FY16 revenue guidance to $6.65 billion from $6.64 billion.

The quarter’s revenue figures represent an increase of 24% year-over-year. Subscription and support revenues were $1.60 billion, an increase of 24% year-over-year. Professional services and other revenues were $116 million, an increase of 22% year-over-year.

As companies across the tech landscape increasingly realize the shift towards cloud computing, many are scrambling to add such capability to their portfolio. Paramount among those Microsoft, long rumored as a potential Salesforce buyer, which under CEO Satya Nadella is remaking itself as a cloud- and mobile-first company. Dell’s recent $67 billion purchase of storage and analytics company EMC also underscores the shift.

Follow USA TODAY tech reporter Marco della Cava on Twitter @marcodellacava.

 

 



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