Salesforce tops Q1 targets on revenue of $1.92 billion, ups fiscal year guidance

Salesforce CEO Marc Benioff said the company was raising its fiscal 2017 revenue by $80 million.

Salesforce reported solid first quarter financial results Wednesday after the bell.

The CRM giant reported net income of $38.7 million, or six cents a share.

Non-GAAP earnings were 24 cents per share on revenue of $1.92 billion, up 27 percent year-over-year (statement).

Wall Street was looking for earnings of 23 cents per share with revenue of $1.89 billion.

Subscription and support revenues increased 26 percent annually to $1.78 billion. Professional services and other revenues totaled $141 million, up 33 percent year-over-year.

For the current quarter, analysts are looking for earnings of 25 cents a share on revenue of $1.98 billion.

Salesforce responded with a revenue range of $2.005 billion to $2.015 billion with earnings between 24 cents and 25 cents per share. For the fiscal year, Salesforce upped its guidance by $80 million to reach $8.2 billion.

Salesforce CEO Marc Benioff, who usually reiterates the social enterprise purveyor's goal to achieve $10 billion in annual revenue, said the increase was due to the "strong response" to the company's web-based sales and marketing software.

Salesforce COO Keith Block, who joined Salesforce from Oracle in February, said the company landed yet another 9-figure transaction during Q1.

"No other enterprise software company is building strategic relationships of this size and scale -- and certainly not at this pace," Block said.

Salesforce shares climbed more than six percent in late trading.