Salesforce reported better-than-expected third quarter financial results on Tuesday but its earnings projection for the current quarter and fiscal year fell below estimates. The CRM software giant delivered non-GAAP earnings of 75 cents per share on revenue of $4.5 billion, up 33% year over year.
Wall Street was looking for earnings of 66 cents per share with revenue of $4.45 billion.
As for the outlook, analysts are looking for earnings of 62 cents a share on revenue of $4.72 billion for the current quarter. Salesforce responded with a revenue range of $4.743 billion to $4.753 billion and earnings between 54 and 55 cents per share.
For the full-year, Salesforce expects earnings between $2.82 and $2.84 per share on revenue between $16.99 billion and $17 billion. Analysts expect full-year earnings of $2.86 per share on revenue of $16.9 billion. Salesforce stock was down around 2% in late trading.
Elsewhere on the balance sheet, the company reported a Q3 net loss of $109 million, or 12 cents per share. Subscription and support revenues increased 34% annually to $4.24 billion. Professional services and other revenues totaled $274 million, up 22% year over year.
Breaking subscription revenues down by segment, Sales Cloud revenue was $1.17 billion, Service Cloud revenue was $1.14 billion, Marketing and Commerce Cloud revenue was $640 million, and Salesforce platform and other revenue was $1.29 billion.
Salesforce says it's now targeting $34 billion to $35 billion in revenue by 2024, organically doubling its revenue over five years.
"We're now on track to double our revenue in five years," said Salesforce co-CEO Marc Benioff, in a statement. "With Customer 360, only Salesforce is providing companies with a single source of truth, bringing them even closer to their customers across every touchpoint."