The 10-second takeaway
For the quarter ended Jan. 31 (Q4), Salesforce beat slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped to a loss.
Margins shrank across the board.
Salesforce logged revenue of $631.9 million. The 35 analysts polled by S&P Capital IQ expected to see net sales of $624.1 million on the same basis. GAAP reported sales were 38% higher than the prior-year quarter's $456.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.43. The 39 earnings estimates compiled by S&P Capital IQ anticipated $0.40 per share on the same basis. GAAP EPS were -$0.03 for Q4 compared to $0.07 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 78.4%, 140 basis points worse than the prior-year quarter. Operating margin was -1.0%, 90 basis points worse than the prior-year quarter. Net margin was -0.6%, 300 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $664.1 million. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $2.91 billion. The average EPS estimate is $1.65.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Salesforce is outperform, with an average price target of $144.99.
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