Salesforce jumps on earnings beat

Salesforce CEO Marc BenioffJustin Sullivan/Getty ImagesSalesforce CEO Marc Benioff

Salesforce just reported its third quarter earnings.

It’s an overall beat across the board. Shares are up roughly 3% after hours.

Here are the most important numbers:

Revenue: $US1.71 billion vs. $US1.70 billion expected

EPS: $US0.21 per share vs. $US0.19 per share

Salesforce shares have been reaching record highs lately after consistently beating earnings expectations in recent quarters.

The company says it expects to generate $US7 billion in annual revenue.

In the past quarter, Salesforce held its annual Dreamforce conference, which brought in over 170,000 people from all over the world. It also struck a number of deals with Microsoft, which has kept talks of a possible sale afloat even after 6 months the rumour was first reported.

Salesforce has been able to grow at a healthy ~25% rate annually, proving to be a rare breed in the enterprise software space, where most companies of its size see growth slow down. Investors have also been keeping an eye on how Salesforce is managing to improve its operating margin, as it grows into the larger enterprise market.

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