Salesforce earnings (NYSE:CRM) were stronger than what Wall Street was projecting late Tuesday afternoon, sending CRM stock up after the bell on the day.
The San Francisco-based cloud-based software company said that for its third quarter of fiscal 2018, it brought in adjusted earnings of 61 cents per share when excluding certain items. The figure was stronger than the 50 cents per share that analysts polled by Refinitiv were calling for.
Salesforce added that its revenue for the period tallied up to $3.39 billion, a 26% increase from the company’s third quarter of fiscal 2017. Analysts were calling for the company to bring in revenue of $3.37 billion, according to data compiled by Refinitiv.
The company added that its research and development costs in the quarter were 22% higher year-over-year, reaching $481 million as it continues to invest in artificial intelligence and analytics tools. Salesforce’s sales and marketing costs were also higher at $1.59 billion, surging 36% year-over-year.
For its fourth quarter of the current fiscal year, the company is projecting sales of $3.55 billion to $3.56 billion, compared to the Wall Street outlook of $3.52 billion, per Refinitiv. Salesforce guides earnings of 54 cents to 55 cents per share, below the 57 cents per share that analysts call for.
CRM stock is soaring nearly 7% after the bell following the company’s impressive third-quarter earnings results. Shares had been gaining nearly 0.9% during regular trading hours in anticipation of the company’s results.