Salesforce Q1 tops estimates
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Salesforce delivered better-than-expected first quarter financial results after the bell Tuesday, with CEO Marc Benioff touting the momentum surrounding the company's AI platform Einstein.
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The CRM giant reported non-GAAP earnings of 74 cents per share on revenue of $3.01 billion, up 25 percent year over year.
Wall Street was looking for earnings of 46 cents per share with revenue of $2.94 billion.
The company's Q1 net income was $344 million, or a 46 cents per share. Subscription and support revenues increased 27 percent annually to $2.81 billion. Professional services and other revenues totaled $196 million, up four percent year over year.
Breaking subscription revenues down by segment, Sales Cloud revenue was $965 million, Service Cloud revenue was $848 million, Marketing and Commerce Cloud revenue was $422 million, and Salesforce platform and other revenue was $575 million.
As for Einstein, Benioff said the platform is delivering nearly two billion AI predictions per day, double its number of daily predictions last quarter.
"This is the most strategic technology for our customers," Benioff said during a call with analysts.
As for the outlook, Wall Street is looking for earnings of 52 cents a share on revenue of $3.11 billion for the current quarter. Salesforce responded with a revenue range of $3.22 billion to $3.23 billion with earnings between 46 and 47 cents per share.