WASHINGTON (dpa-AFX) - Salesforce.com Inc., (CRM), Tuesday reported a third-quarter profit that trumped Wall Street estimates, as revenues came in higher-than-expected boosted by demand for its flagship Sales Cloud business. Shares gained 5% on the news, in the after hours.
Net income for the third quarter were $105 million or $0.13 per share, compared with $107 million or $0.14 per share last year.
On an adjusted basis, earnings for the quarter rose to $0.61 per share from $0.42 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.50 per share for the quarter. Analysts' estimates typically exclude one-time items.
Third-quarter revenues grew 26% to $3.39 billion from $2.70 billion last year. Analysts had a consensus revenue estimate of $3.37 billion for the quarter.
Subscription and support revenues were $3.17 billion, an increase of 26% year-over-year. Professional services and other revenues were $224 million, an increase of 15% year-over-year.
'Given the strength of this quarter's results and the incredible customer demand we are seeing, we are again raising our FY19 revenue guidance and initiating our full year fiscal 2020 revenue guidance at $16 billion at the high end of the range,' said Keith Block, co-CEO, Salesforce.
Looking forward to the fourth quarter, Salesforce expects adjusted earnings of $0.54 to $0.55 per share and revenues of $3.551 billion to $3.561 billion. Analysts currently estimate earnings of $0.57 per share and revenues of $3.53 billion.
For the full year 2019, the company now expects adjusted earnings of $2.60 to $2.61 per share and revenues of $13.23 billion to $13.24 billion. Analysts currently estimate earnings of $2.51 per share and revenues of $13.17 billion.
Previously, the company expected adjusted earnings of $2.50 to $2.52 per share and revenues of $13.125 billion to $13.175 billion.
For the full year 2020, the company now expects revenues of $15.90 billion to $16.00 billion. Analysts currently estimate revenues of $15.83 billion.
CRM closed Tuesday's trading at $127.54, up $1.13 or 0.89%, on the NYSE. The stock further gained $7.26 or 5.69% in the after-hours trade.
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