Cloud software company Salesforce.com reported its third quarter earnings that surpassed analysts’ expectations. However, the company’s guidance was below expectations.
Salesforce.com’s GAAP earnings of $1.15 per share was a major improvement from the year-ago quarter’s loss of -12 cents per share a year ago. Adjusted earnings came in at $1.74 a share, compared to the 75 cents per share forecasted by analysts surveyed by Factset.
Revenue surged +20% year-over-year to $5.42 billion, beating the $5.25 billion expected by analysts polled by FactSet.
The quarter’s subscription and support revenues rose +20% year-over-year.
For the fourth quarter, Salesforce.com expects earnings in the range of 73 cents to 74 cents, and revenue range of $5.67 billion to $5.68 billion. Analysts polled by FactSet estimated earnings of 86 cents a share and revenue of $5.51 billion.
Looking further ahead, Salesforce projects full-year earnings to range between $4.63 and $4.63. It expects revenue in the range of $21.10 billion to $21.11 billion. Those are lower expectations compared to the Street forecasts of earnings of $3.75 per share on revenue of $20.78 billion.