Salesforce (CRM) will report first quarter results this afternoon and host a call at 17:00 PM ET. 

Salesforce has guided for Q1 adjusted EPS of $0.46-0.47 (vs. $0.28 last year) with revenue up 23% to $2.935-2.945 bln and deferred revenue up 23-24%. 

Salesforce is the leader in customer relationship management (CRM) cloud software, including sales force automation, customer service and support, marketing automation, digital commerce, community management, analytics, application development, Internet of Things (IoT) integration and collaborative productivity tools. Salesforce had a near 20% market share in CRM last year while Oracle (ORCL) and SAP (SAP) were both in the 7% range. 

 

TECHS:

Salesforce has a $97 billion market cap and the stock trades at ~56x EPS or ~7.6x sales estimates for the year.

Salesforce beats by $0.06, beats on revs; guides Q2 and FY19 including MuleSoft acquisition  

  • Reports Q1 (Apr) earnings of $0.52 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of $0.46; revenues rose 25.4% year/year to $3.01 bln vs the $2.94 bln Capital IQ Consensus.  
  • Deferred revenue +25% (+23% in constant currency) vs. +23-24% guidance
  • Co issues guidance for Q2 and FY19 including MuleSoft (estimates do not appear to include that recent acquisition), sees Q2 EPS of $0.46-0.47, may not be comparable to $0.52 Capital IQ Consensus Estimate; sees Q2 revs of $3.22-3.23, may not be comparable to $3.11 bln Capital IQ Consensus Estimate; unearned rev +22-23%.
  • Sees FY19 non-GAAP EPS of $2.29-2.31, up from $2.25-2.27, not comparable to $2.15 Capital IQ Consensus Estimate; sees FY19 revs of $13.075-13.125 bln up from $12.66-12.71 bln, not be comparable to $12.76 bln Capital IQ Consensus Estimate.