The 10-second takeaway
For the quarter ended Jan. 31 (Q4), salesforce.com, inc met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased significantly. GAAP loss per share increased.
Margins dropped across the board.
salesforce.com, inc tallied revenue of $834.7 million. The 39 analysts polled by S&P Capital IQ hoped for a top line of $830.9 million on the same basis. GAAP reported sales were 32% higher than the prior-year quarter's $631.9 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 $0.51. The 40 earnings estimates compiled by S&P Capital IQ forecast $0.40 per share. Non-GAAP EPS of $0.51 for Q4 were 19% higher than the prior-year quarter's $0.43 per share. GAAP EPS were -$0.14 for Q4 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 78.0%, 40 basis points worse than the prior-year quarter. Operating margin was -2.5%, 150 basis points worse than the prior-year quarter. Net margin was -2.5%, 190 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $886.3 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $3.86 billion. The average EPS estimate is $1.98.
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 $178.61.
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