Salesforce beats Q3 expectations

The CRM giant should deliver its first $10 billion year in fiscal year 2018, CEO Marc Benioff says.
Written by Stephanie Condon, Senior Writer

Salesforce reported its third quarter earnings on Thursday, slightly beating market expectations.

The CRM giant posted earnings per share of 24 cents on revenue of $2.14 billion.

Wall Street was looking for 21 cents a share on $2.12 billion in revenue. A year earlier, Salesforce had an EPS of 21 cents a share on $1.71 billion in revenue.

"Salesforce delivered an exceptional quarter with year-over-year revenue growth of 25 percent in dollars and 27 percent in constant currency," said CEO Marc Benioff in a statement. "I'm delighted to announce that we expect to deliver our first $10 billion year during our fiscal year 2018, which puts us well on the path to reach $20 billion faster than any other enterprise software company."

Subscription and support revenues came to $1.98 billion, an increase of 24 percent year over year. Professional services and other revenues hit $161 million, an increase of 39 percent year over year.

The company is raising its fiscal full-year 2017 revenue guidance to between $8.365 billion and $8.375 billion.

For the fourth quarter, the company expects revenue between $2.267 billion and $2.277 billion with non-GAAP earnings per share projected to fall between 24 cents and 25 cents.

Saleforce's full fiscal year 2018 revenues are projected to fall somewhere between $10.1 billion and $10.15 billion.

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