Salesforce Maintains Growth of Operating Earnings
December 03 2019 - 5:23PM
Dow Jones News
By Aaron Tilley
Salesforce.com Inc. posted a fiscal third-quarter net loss after
closing its biggest ever acquisition even as its operating earnings
remained on a growth track.
The company, a provider of subscription-based business software,
said on Tuesday that it had a net loss of $109 million compared
with a $105 million net profit a year earlier.
In August, Salesforce said it completed the purchase of Tableau
Software Inc., a data-analytics platform, for more than $15 billion
in stock. The addition, Salesforce has said, is expected to help
the company build out a new business in data-analytics software,
though it weighed on the last quarter's bottom line because of
charges related to the deal.
Sales in the quarter ended Oct. 31 rose 33% to a record $4.51
billion, compared with $4.45 billion that analysts surveyed by
FactSet had been expecting. Salesforce's closely watched
anticipated billings for the coming months from its
subscription-based revenue model rose 28% year-over-year. The
company previously promised growth of 24% to 25%.
The San Francisco company raised last month the top end of its
full-year sales guidance to $17 billion after boosting its outlook
already once over the summer. Salesforce also said it would
increase sales to as high as $35 billion in the fiscal year ended
Jan. 31, 2024.
Revenue in the current quarter should reach $4.74 billion to
$4.75 billion, Salesforce said. Analysts had forecast sales of
$4.74 billion. The company also said sales in the first quarter of
the coming financial year should rise as much as 29% to $4.84
billion compared with the prior-year period.
Shares fell 1.79% in after-hours trading.
(END) Dow Jones Newswires
December 03, 2019 17:08 ET (22:08 GMT)
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