Salesforce delivered significantly better-than-expected first quarter financial results after the bell Tuesday. The CRM giant reported non-GAAP earnings of 93 cents per share, compared to the 61 cents expected by Wall Street. The company's Q1 revenue was $3.74 billion, up 24% year over year. Analysts were expecting revenue of $3.68 billion.
The company's Q1 net income was $392 million, or a 49 cents per share. Subscription and support revenues increased 24% annually to $3.50 billion. Professional services and other revenues totaled $241 million, up 23% year over year.
Breaking subscription revenues down by segment, Sales Cloud revenue was $1.1 billion, Service Cloud revenue was $1 billion, Marketing and Commerce Cloud revenue was $600 million, and Salesforce platform and other revenue was $800 million.
As for the outlook, Wall Street is looking for earnings of 66 cents a share on revenue of $3.68 billion for the current quarter. Salesforce responded quite a bit below target on the EPS side. The company now expects revenue in the range of $3.94 billion to $3.95 billion with earnings between 46 cents to 47 cents per share. Nonetheless, shares of Salesforce were up just over 2% after hours.
"I am thrilled with our results this quarter, and I am especially excited to have delivered record revenue in Q1 and operating cash flow of almost $2 billion, up 34% year-over-year," said Marc Benioff, chairman and coCEO of Salesforce, in prepared remarks. "We have a massive opportunity in front of us and are well-positioned for long-term growth."