Free Post Earnings Research Report: Salesforce’s Q1 Top-Line Surged 25% Y-o-Y; Outperformed Projections

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LONDON, UK / ACCESSWIRE / June 26, 2018 / If you want access to our free earnings report on salesforce.com, inc. (NYSE: CRM) (“Salesforce”), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CRM. The Company posted its financial results on May 29, 2018, for the first quarter of the fiscal year 2019 (Q1 FY19). The San Francisco, California-based Company’s quarterly total revenues rose 25% y-o-y, beating market consensus estimates. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Earnings Highlights and Summary

For Q1 FY19, Salesforce reported record total revenues of $3.01 billion, rising from the $2.40 billion posted at the end of Q1 FY18. The Company’s revenue numbers for the reported quarter outperformed market expectations of $2.94 billion. During the reported quarter, the Company’s subscription and support revenues surged to $2.81 billion from $2.21 billion in the prior year’s same period. Furthermore, the Company’s professional services and other revenues came in at $196 million in Q1 FY19 compared to $188 million in Q1 FY18.

The CRM software maker reported a net income of $344 million, or $0.46 per diluted share, in Q1 FY19 compared to $1 million, or $0.00 per diluted share, in Q1 FY18. Meanwhile, the Company recorded a non-GAAP net income of $557 million, or $0.74 per diluted share, in Q1 FY19 versus $212 million, or $0.29 per diluted share, in the prior year’s comparable quarter. Furthermore, the Company’s non-GAAP net income outperformed market earnings estimates of $0.46 per diluted share.

Operating Metrics

For the three months ended April 30, 2018, the Company incurred total cost of revenues of $767 million compared to $651 million in Q1 FY18. The Company posted an adjusted gross profit of $2.31 billion in Q1 FY19 compared to $1.82 billion in the prior year’s corresponding quarter. The Company’s non-GAAP operating expenses increased to $1.80 billion during Q1 FY19 from $1.49 billion in Q1 FY18. Furthermore, the Company’s non-GAAP income from operations increased to $512 million during Q1 FY19 from $331 million in Q1 FY18.

Geographical Contribution

During Q1 FY19, Salesforce’s sales in the Americas, which is the largest market for the Company, were approximately $2.10 billion, or 70% of total revenues, compared to $1.77 billion, or 74% of total revenues, in Q1 FY18.

Salesforce’s revenues from the European region grew to $606 million, or 20% of total revenues, in Q1 FY19 from $409 million, or 17% of revenues, in the last year’s same quarter.

The Company generated $299 million of sales revenues from the Asia/Pacific region in Q1 FY19, which came in above the $223 million recorded in the prior year’s comparable quarter.

Cash Flow and Balance Sheet

For the three months ended April 30, 2018, Salesforce generated cash from operations of $1.47 billion compared to $1.23 billion at the end of the year ago corresponding period. The Company’s free cash flow increased to $1.34 billion in Q1 FY19 from $1.07 billion in Q1 FY18.

The Company had a cash and cash equivalents balance of $5.92 billion as on April 30, 2018, up from $2.54 billion at the close of books on January 31, 2018. Furthermore, the Company’s non-current debt balance stood at $3.17 billion as on April 30, 2018, compared to $695 million as on January 31, 2018.

Outlook

In its guidance for Q2 FY19, Salesforce expects revenues to be in the range of $3.22 billion to $3.23 billion, rising 25% at the mid-point. The Company’s GAAP diluted loss per share is projected to be between $0.09 and $0.08, while its non-GAAP diluted earnings per share is anticipated to be in the band of $0.46 to $0.47 for Q2 FY19.

For the full fiscal year 2019, Salesforce’s management projects revenues to be in the range of $13.075 billion to $13.125 billion, up 24% to 25% y-o-y. The Company’s GAAP diluted earnings per share is forecasted to be in the band of $0.49 to $0.51, whereas its non-GAAP diluted earnings per share is projected to be between $2.29 and $2.31 for FY19. Furthermore, the Company’s operating cash flow growth is expected to be 14% to 15% y-o-y for FY19.

Stock Performance Snapshot

June 25, 2018 – At Monday’s closing bell, salesforce.com’s stock declined 1.35%, ending the trading session at $133.19.

Volume traded for the day: 5.58 million shares, which was above the 3-month average volume of 5.22 million shares.

Stock performance in the last month – up 3.46%; previous three-month period – up 11.95%; past twelve-month period – up 50.29%; and year-to-date – up 30.28%

After yesterday’s close, salesforce.com’s market cap was at $100.59 billion.

Price to Earnings (P/E) ratio was at 145.25.

The stock is part of the Technology sector, categorized under the Application Software industry.

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