Salesforce.com Earnings: Here’s Why Investors are Excited Now

Salesforce.com (NYSE:CRM) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 7.33%.

Salesforce.com Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 18.18% to $0.09 in the quarter versus EPS of $0.11 in the year-earlier quarter.

Revenue: Rose 30.8% to $957 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Salesforce.com reported adjusted EPS income of $0.09 per share. By that measure, the company beat the mean analyst estimate of $0.07. It beat the average revenue estimate of $939.25 million.

Quoting Management: “Salesforce.com continues to be the fastest growing software company of its size with year-over-year growth of more than 30% in revenue, deferred revenue, and operating cash flow,” said Marc Benioff, Chairman and CEO, salesforce.com. “I’m delighted to announce that just four years after delivering our first $1 billion revenue year, we are now poised to deliver our first $1 billion revenue quarter in the third quarter of fiscal 2014.”

Key Stats (on next page)…

Revenue increased 7.21% from $892.63 million in the previous quarter. EPS decreased 10% from $0.10 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.13 to a profit $0.07. For the current year, the average estimate has moved down from a profit of $0.49 to a profit of $0.33 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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