The 10-second takeaway
For the quarter ended Oct. 31 (Q3), salesforce.com, inc beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share grew.
Margins shrank across the board.
salesforce.com, inc tallied revenue of $788.4 million. The 36 analysts polled by S&P Capital IQ wanted to see revenue of $776.6 million on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $584.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.33. The 38 earnings estimates compiled by S&P Capital IQ averaged $0.32 per share. GAAP EPS were -$1.55 for Q3 compared to -$0.03 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 76.4%, 160 basis points worse than the prior-year quarter. Operating margin was -6.9%, 520 basis points worse than the prior-year quarter. Net margin was -27.9%, 2,730 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $830.1 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $3.04 billion. The average EPS estimate is $1.51.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on salesforce.com, inc is outperform, with an average price target of $174.28.
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