Yahoo Finance Salesforce Continues Its Growth Story in Fiscal 1Q17
How Salesforce Continued Its Growth Story in Fiscal 1Q17
Salesforce’s fiscal 1Q17 surpasses analysts’ expectations
As scheduled, Salesforce (CRM) reported its fiscal 1Q17 earnings on May 18, 2016. Following the same trend over the past couple of quarters, Salesforce’s revenue has once again exceeded analysts’ expectations. For fiscal 1Q17, Salesforce posted revenue and non-GAAP (generally accepted accounting principle) EPS (earnings per share) of $1.9 billion and $0.24, respectively. Salesforce’s revenue beat analysts’ expectations by $30 million, while its EPS beat analysts’ expectations marginally, by $0.01. Unlike last quarter, Salesforce reported a profit. It reported EPS of $0.06 per share in fiscal 1Q17.
Salesforce’s fiscal 1Q17 revenue not only exceeded analysts’ expectations but its own guidance as well. In its fiscal 2016 release, it provided revenue guidance in the range of $1.89 billion–$1.9 billion. On a constant currency basis, its fiscal 1Q17 revenue grew by 28% on a YoY (year-over-year) basis.
Operating and geographic performance
As in fiscal 2016, Salesforce’s subscription and support revenue continued to be a major contributor towards the overall revenue, as the above chart shows. The subscription and support revenue was $1.8 billion—an increase of 26% on a YoY basis. Professional services, which contributed the remaining 7% of the overall revenue, grew by 33% to $105.8 million.
In fiscal 1Q17, the Americas posted $1.4 billion in revenue, and Europe (EFA) and Asia-Pacific (FAX) posted ~$327 million and ~$175 million in revenue, respectively. Unlike peers IBM (IBM) and Oracle (ORCL), which are encountering difficulties growing their revenues, Salesforce continues to report double-digit growth with each passing quarter.
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