Salesforce Revenue Rises 26% - Beats on Top and bottom Lines
August 23, 2017
Salesforce reported results for its fiscal second quarter ended
July 31, 2017.
Salesforce delivered the flowing results for its fiscal second
Revenue: Total Q2 revenue was $2.56 billion, an increase of 26%
year-over-year, and 25% in constant currency. Subscription and
support revenues were $2.37 billion, an increase of 26%
year-over-year. Professional services and other revenues were
$193 million, an increase of 28% year-over-year.
Earnings per Share: Q2 GAAP
diluted earnings per share was $0.02, and non-GAAP diluted
earnings per share was $0.33.
Investors expected an
EPS of 32 cents per share, and revenue of $2.51 billion.
Cash: Cash generated from operations for the second quarter was
$331 million, an increase of 32% year-over-year. Total cash,
cash equivalents and marketable securities finished the quarter
at $3.50 billion.
Deferred Revenue: Deferred revenue on the balance sheet as of
July 31, 2017 was $4.82 billion, an increase of 26%
year-over-year, and 25% in constant currency. Unbilled deferred
revenue, representing business that is contracted but unbilled
and off balance sheet, ended the second quarter at approximately
$10.4 billion, up 30% year-over-year. This includes
approximately $625 million related to unbilled deferred revenue
"We had a phenomenal quarter of growth, reaching a huge
milestone for the company, becoming the first enterprise cloud
software company to break the $10 billion revenue run rate,"
said Marc Benioff, chairman and CEO, Salesforce. "We did this
faster than any other enterprise software company in history.
Our continued momentum as the leader in CRM, the fastest-growing
segment of our industry, combined with more than $15 billion in
billed and unbilled deferred revenue, puts us well on the path
to $20 billion and beyond."
As of August 22, 2017, the company is initiating revenue,
earnings per share, and deferred revenue guidance for its third
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 May 18, 2017.
Q3 FY18 Guidance: Revenue is projected to be $2.64 billion to
$2.65 billion, an increase of 23% to 24% year-over-year.
diluted earnings per share is projected to be $0.04 to $0.05,
while non-GAAP diluted earnings per share is projected to be
$0.36 to $0.37.
On balance sheet deferred revenue growth is projected to be 18%
to 19% year-over-year.
Full Year FY18 Guidance: Revenue is projected to be $10.35
billion to $10.40 billion, an increase of 23% to 24%
GAAP diluted earnings per share is projected to be $0.07 to
$0.09, while non-GAAP diluted earnings per share is projected to
be $1.29 to $1.31.
Operating cash flow growth is projected to be 20% to 21%