Salesforce Q1 - Tops Forecasts -
May 19, 2017
Salesforce results for its fiscal
first quarter ended April 30, 2017.
“With our outstanding first quarter results, we are thrilled to be
raising our fiscal 2018 revenue guidance by $100 million and raising our
GAAP and non-GAAP earnings per share expectations for the year,” said
Marc Benioff, chairman and CEO, Salesforce. “Salesforce has once again
been named the CRM market leader, and we continue to grow our share in
CRM -- the fastest growing enterprise software market.”
Salesforce delivered the following results for its fiscal first quarter
Revenue: Total Q1 revenue was $2.39 billion, an increase of 25%
year-over-year, and 25% in constant currency. Subscription and support
revenues were $2.2 billion, an increase of 24% year-over-year.
Professional services and other revenues were $187 million, an increase
of 32% year-over-year.
Earnings per Share: Q1 GAAP loss per share was ($0.01), and non-GAAP
diluted earnings per share was $0.28.
Investors were looking for adjusted
earnings of 26 cents a share on sales of $2.35 billion.
Cash: Cash generated from operations
for the first quarter was $1.23 billion, an increase of 17%
year-over-year. Total cash, cash equivalents and marketable securities
finished the quarter at $3.22 billion.
Deferred Revenue: Deferred revenue on the balance sheet as of April 30,
2017 was $5.04 billion, an increase of 26% year-over-year, and 27% in
constant currency. Unbilled deferred revenue, representing business that
is contracted but unbilled and off balance sheet, ended the first
quarter at approximately $9.6 billion, up 26% year-over-year. This
includes approximately $450 million related to unbilled deferred revenue
As of May 18, 2017, the company is initiating revenue, earnings per
share, and deferred revenue guidance for its second quarter of fiscal
year 2018. In addition, the company is raising its full fiscal year 2018
revenue and earnings per share guidance, and maintaining its operating
cash flow guidance, previously provided on February 28, 2017.
FY18 Guidance: Revenue is projected to be approximately $2.51 billion to
$2.52 billion, an increase of 23% to 24% year-over-year.
GAAP diluted earnings per share is projected to be $0.00 to $0.01, while
non-GAAP diluted earnings per share is projected to be $0.31 to $0.32.
On balance sheet deferred revenue growth is projected to be
approximately 22% year-over-year.
Full Year FY18 Guidance: Revenue is projected to be approximately $10.25
billion to $10.30 billion, an increase of 22% to 23% year-over-year.
GAAP diluted earnings per share is projected to be $0.06 to $0.08, while
non-GAAP diluted earnings per share is projected to be $1.28 to $1.30.
Operating cash flow growth is projected to be 20% to 21% year-over-year.