salesforce.com
The 10-second takeaway
For the quarter ended April 30 (Q1), Salesforce beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue increased significantly.
Margins shrank across the board.
Revenue details
Salesforce reported revenue of $695.5 million. The 37 analysts polled by S&P Capital IQ expected revenue of $678.2 million on the same basis. GAAP reported sales were 38% higher than the prior-year quarter's $504.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.37. The 41 earnings estimates compiled by S&P Capital IQ predicted $0.34 per share. GAAP EPS were -$0.14 for Q1 versus $0.00 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 78.2%, 140 basis points worse than the prior-year quarter. Operating margin was -3.2%, 260 basis points worse than the prior-year quarter. Net margin was -2.8%, 290 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $728.5 million. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $3.00 billion. The average EPS estimate is $1.65.
Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Salesforce is outperform, with an average price target of $158.59.
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