Salesforce Sees Increase in Deferred Revenue -- Update
01 März 2017 - 12:08AM
Dow Jones News
By Jay Greene
Salesforce.com Inc. posted a 29% jump in deferred revenue for
its fiscal fourth quarter, a sign the business-software company
continues to rack up customers moving computing operations to the
cloud.
The company also updated its annual outlook for revenue,
expecting between $10.15 billion and $10.20 billion up from $10.10
billion to $10.15 billion, previously. Analysts surveyed by Thomson
Reuters forecast $10.16 billion.
Because Salesforce relies on subscriptions of its web-based,
on-demand software, deferred revenue better reflects the company's
prospects than does overall revenue.
Deferred revenue, which consists primarily of billings received
in advance for subscription services, rose to $5.54 billion. Nomura
Securities Co. analyst Frederick Grieb had forecast
deferred-revenue growth of 22%.
In constant currency, a measurement used to eliminate the
effects of exchange-rate fluctuations, deferred revenue also
climbed 29%.
Revenue from Sales Cloud, the company's flagship sales-force
automation business, rose 13.5% to $804.9 million.
Its Service Cloud business, which helps companies run
customer-service operations, generated $615.3 million in revenue, a
24.2% gain. And Salesforce's Marketing Cloud, used for email and
advertising campaigns, posted $298.8 million in revenue, up
62.3%.
Salesforce posted $51.4 million in net loss, or 7 cents a share
for the quarter that ended Jan. 31, compared with a loss of $25.5
billion, or 4 cents a share, a year ago.
Excluding the impact of items, such as amortization and
stock-based compensation, adjusted earnings rose to 28 cents from
19 cents a year earlier. Analysts surveyed by Thomson Reuters were
forecasting adjusted earnings of 25 cents a share. Revenue gained
26.8% to $2.29 billion, compared with analysts forecasts of $2.28
billion
Shares fell 0.97% to $80.64 in after-hours trading as per-share
earnings and revenue beat expectations.
Annual revenue hit $8.39 billion, a 26% gain.
Three months ago, the company said it would reach $10 billion in
annual revenue by January 2018, setting a time frame for reaching
one of its longstanding goals.
For the current quarter the company projected revenue between
$2.34 billion and $2.35 billion with income on a per-share basis in
the range of loss between 2 and 3 cents, with adjusted earnings
between 25 cents and 26 cents. Analysts expected $2.37 billion in
revenue and 30 cents in adjusted income on a per-share basis.
Write to Jay Greene at Jay.Greene@wsj.com
(END) Dow Jones Newswires
February 28, 2017 17:53 ET (22:53 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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