Salesforce.com rises on Earnings beat

Salesforce.com, Inc. (NYSE:CRM) reported q3 earnings that beat analyst expectations across the board. The share value is up over 6 percent in after-hours trading. Earnings per share of $0.24 was reported, beating analyst expectation of $0.21 per share. Revenue was reported $2.14 billion, higher than analyst expectation of $2.12 billion.

There were some concerns with growth stalling due to weaker currency rates. This should ignite investor interest and confidence going into Salesforce’s q4 as q4 is the company’s biggest quarter of the year. Revenue guidance for q4 was raised to $2.26 – $2.27 billion that beat analyst estimates of $2.24 billion.

CEO Marc Benioff announced that the company is on track to hit the $10 billion annual revenue milestone for next year, one of his goals from years ago. “I’m delighted to announce that we expect to deliver our first $10 billion year during our fiscal year 2018, which puts us well on the path to reach $20 billion faster than any other enterprise software company,” Benioff said.

Sales Cloud is the largest business for Salesforce, almost 40 percent of the company’s revenue. All of Salesforce’s cloud computing services have shown growth this quarter. The company announced an operating income (non-GAAP) growth of 20 percent from last year, $273 million this quarter.

Salesforce had its Dreamforce annual conference in October and revealed its new product Einstein. The company also boasted rumors of buying Twitter, where investors were not for the decision so Benioff had to reassure them that he’s not interest in buying Twitter at this time.

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