Salesforce shares are popping 5.5% in after hours trading after the company beat Wall Street's Q1 financial targets across the board.
Here are the most important numbers from Salesforce's earning report:
- EPS (non-GAAP): $0.24 per share vs. $0.23 per share expected by analysts
- Revenue: $1.92 billion (up 27% year-over-year) vs. $1.89 billion expected by analysts
Salesforce has been on a roll lately, consistently beating street estimates over the past few years. With more and more companies making the shift to the cloud, Salesforce has been a major beneficiary and has been able to quickly expand its business.
Salesforce raised its revenue guidance for the full year to the range of $8.16 billion to $8.20 billion. For the second quarter, Salesforce expects to report revenue in the range of $2.005 billion to $2.015 billion, up 23% from the same period of last year, despite experiencing a major server outage last week.
Salesforce continues to prove it has a strong cash-generating business, as it recorded $1.05 billion in operating cash flow in the first quarter. Its deferred revenue and unbilled deferred revenue each came in at $4.01 billion and $7.6 billion, respectively, showing there's over $11 billion in booked contracts that have not been recorded as actual revenue yet.
A lot of this is being propelled by signing huge, enterprise-level contracts that are worth more than $100 million. Last quarter, it said it signed two new 9-figure contracts, and this quarter it looks like it signed another $100 million-plus deal.
"We continued to drive larger and more strategic transactions in the first quarter, including yet another 9-figure transaction. No other enterprise software company is building strategic relationships of this size and scale—and certainly not at this pace," Salesforce COO Keith Block said in a statement.
