Salesforce posts a slight beat, stock rises

Marc BenioffKenneth Yeung – CEO Marc Benioff

Salesforce just reported earnings for the quarter ended July 31, and it’s a slight beat on earning.

Here are the numbers:

  • $US0.19 EPS vs $US0.18 expected (non-GAAP). GAAP earnings per share were $US0.00.
  • $US1.63 billion revenue vs $US1.60 billion expected. That’s up 24% from last year.

The stock is up more than 3% after hours on the solid revenue growth and guidance.

However, the stock had fallen almost 5% during regular trading, in a tough day for the market overall.

In the earnings release, Salesforce boasted that the company was on track to book $US6.5 billion in annual recurring revenue this year, making it the fastest-ever enterprise software company to reach that mark.

The company’s Service Cloud, a set of tools for marketing and customer support, showed the fastest growth from last year, growing almost 40% to $US445 million. Its largest and oldest business, the Sales Cloud, which is for salespeople, grew only 10% to $US671 million.

The company also issued guidance for next quarter of $US1.69 to $US1.70 billion in revenue, with non-GAAP earnings of $US0.18 to $US0.19 per share.

Headcount stands at over 17,000, making it the biggest tech employer based in San Francisco. It’s added more than 2,000 full time employees in the last year.

Salesforce has been on a tear for the last couple of quarters, and its stock reached an all time high immediately following its last earnings report in April.

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