Salesforce Sales Jump 25% -- Earnings Review

   By Austen Hufford 
 

Salesforce.com Inc. (CRM) reported results for its first quarter. Here is what you need to know:

REVENUE: Total sales for the company rose 25% to $3.01 billion. Subscription-related sales rose 27% to $2.81 billion as professional-services revenue rose 4% to $196 million.

ACCOUNTING CHANGES: The company adopted new accounting rules, which impacted how the company accounts for contract revenue, deferred costs, investments and other items. The move also makes it hard to compare with what analysts were expecting.

PROFIT: Net income for the quarter was $344 million, or 46 cents a share, compared with $1 million, or zero cents a share, in the prior-year period. On an adjusted basis, earnings per share came in at 74 cents. The accounting changes boosted adjusted earnings per share by 22 cents.

SHARES: In post-market trading, shares rose 3.5% to $131.41.

OUTLOOK: For the fiscal year, the company now expects adjusted earnings per share of $2.29 to $2.31, higher than the $2.25 to $2.27 expected previously. Revenue of $13.08 billion to $13.13 billion is now expected for the year, higher than the $12.66 billion to $12.71 billion expected previously.

GLOBAL GROWTH: The Americas remained, by far, the company's largest geographic unit, bringing in 70% of total revenue, but that is down from 74% a year before. Europe now accounts for 20% of revenue, up from 17% before.

Write to Austen Hufford at [e-mail]

(END) Dow Jones Newswires

May 29, 2018 17:05 ET (21:05 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.