The 10-second takeaway
For the quarter ended April 30 (Q1), salesforce.com, inc met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew. GAAP loss per share expanded.
Margins dropped across the board.
salesforce.com, inc logged revenue of $892.6 million. The 34 analysts polled by S&P Capital IQ anticipated a top line of $887.3 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $695.5 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 $0.10. The 37 earnings estimates compiled by S&P Capital IQ predicted $0.10 per share. Non-GAAP EPS of $0.10 for Q1 were 11% higher than the prior-year quarter's $0.09 per share. GAAP EPS were -$0.12 for Q1 compared to -$0.04 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 76.6%, 160 basis points worse than the prior-year quarter. Operating margin was -5.0%, 180 basis points worse than the prior-year quarter. Net margin was -7.6%, 480 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $935.4 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $3.87 billion. The average EPS estimate is $0.50.
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 $48.21.
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