Salesforce Drops on Q3 Results

Salesforce.com, inc. (NYSE:CRM) reported upbeat results for its third quarter, but issued weak fourth-quarter earnings guidance.

The San Francisco-based Salesforce, the global leader in CRM, today announced third-quarter revenue of $4.5 billion, up 33% year-over-year.

Total third-quarter revenue was $4.5 billion, an increase of 33% year-over-year, and 34% in constant currency. Subscription and support revenues were $4.24 billion, an increase of 34% year-over-year. Professional services and other revenues were $274 million, an increase of 22% year-over-year.

Third-quarter GAAP loss per share was $0.12, and non-GAAP diluted earnings per share was $0.75. Mark-to-market accounting of the company's strategic investments, required by ASU 2016-01, benefited GAAP loss per share by $0.01 based on a U.S. tax rate of 25% and non-GAAP diluted earnings per share by $0.01 based on a non-GAAP tax rate of 22.5%.

"We're now on track to double our revenue in five years," said co-CEO Marc Benioff. "With Customer 360, only Salesforce is providing companies with a single source of truth, bringing them even closer to their customers across every touchpoint."

For the next quarter, Salesforce has issued guidance of $4.743 - $4.753 billion, with projected loss per share around three to four cents.

As of this week, Salesforce is initiating revenue, earnings per share and current remaining performance obligation growth guidance for its fourth quarter of fiscal year 2020.

Shares in CRM doffed $1.51, at Wednesday’s opening bell, to $160.30.