Salesforce.com, Inc. (NYSE:CRM) had a strong quarterly showing as the company unveiled its latest results, which came in well ahead of Wall Street’s expectations.
The company reported adjusted earnings of 74 cents per share, which was better than what analysts were calling for at adjusted earnings of 46 cents per share, according to data compiled by FactSet. It also posted revenue of $3.01 billion for its first quarter of fiscal 2019, a 25% gain compared to the company’s year-ago sales.
Salesforce beat estimates as Wall Street was calling for revenue of $2.95 billion, according to data compiled by Thomson Reuters. The company’s subscription and support fees are its most prominent business, which brought in revenue of $2.81 billion, up 27% year-over-year and ahead of the $2.73 billion that analysts were calling for, per FactSet.
The company’s Sales Cloud for customer relationship management is its biggest product, but the Service Cloud grew more by gaining 29.3% compared to the year-ago quarter. Plus, SalesForce’s Einstein artificial intelligence technology is becoming more popular, with 2 billion predictions happening every day.
For its second quarter of fiscal 2019, the company predicts adjusted earnings in the range of 46 cents to 47 cents per share, while its revenue is slated to be in the range of $3.22 billion to $3.23 billion. Analysts are calling for revenue of around $3.11 billion, per Thomson Reuters.
CRM stock fell 0.8% during regular trading hours but gained nearly 3.9% after the bell on its quarterly earnings beat.