salesforce.com, inc. (NYSE:CRM) reported stronger-than-expected earnings for its first quarter and raised its 2020 guidance.
Co-CEO Marc Benioff said, "I am thrilled with our results this quarter, and I am especially excited to have delivered record revenue in Q1 and operating cash flow of almost $2 billion, up 34% year-over-year. We have a massive opportunity in front of us and are well-positioned for long-term growth as the world's #1 CRM."
The San Francisco-based company reported total first-quarter revenue of $3.74 billion, an increase of 24% year-over-year, and 26% in constant currency. Subscription and support revenues were $3.50 billion, an increase of 24% year-over-year. Professional services and other revenues were $241 million, an increase of 23% year-over-year.
First-quarter GAAP diluted earnings per share was $0.49, and non-GAAP diluted earnings per share was $0.93. Mark-to-market accounting of the company's strategic investments, required by ASU 2016-01, benefited GAAP diluted earnings per share by $0.27, based on the US tax rate of 25% and non-GAAP diluted earnings per share by $0.27 based on its non-GAAP tax rate of 22.5%.
Cash generated from operations for the first quarter was $1.97 billion, an increase of 34% year-over-year. Total cash, cash equivalents and marketable securities ended the first quarter at $6.38 billion.
As of yesterday, the company is initiating revenue, earnings per share and current remaining performance obligation growth guidance for its second quarter of fiscal year 2020.
Revenue is projected at $3.94 - $3.95 billion. GAAP loss per share is foreseen to be ($0.08) - ($0.07)
Shares soared $5.25, or 3.5%, to $156.06
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