, inc.: This Is Sending CRM Stock Soaring Today

Salesforce StockCRM Stock Jumps on Strong Earnings, inc. (NYSE:CRM) stock jumped eight percent in after-hours trading as the company reported ahead-of-estimates third quarter earnings., the business software provider and CRM leader, posted revenue of $2.14 billion for the third quarter, beating consensus Wall Street estimates of $2.12 billion. Chairman and CEO Marc Benioff said, “Salesforce delivered an exceptional quarter with year-over-year revenue growth of 25% in dollars and 27% in constant currency.” (Source: Salesforce Announces Fiscal 2017 Third Quarter Results,, inc., November 17, 2016.)

CRM stock touched $81.50 in after-hours high as the company guided revenue of $10.1 billion to $10.15 billion for fiscal 2018. The optimistic CEO noted, “I’m delighted to announce that we expect to deliver our first $10 billion year during our fiscal year 2018, which puts us well on the path to reach $20 billion faster than any other enterprise software company.” (Source: Ibid.)

Salesforce reported robust Q3 results after weak Q2 earnings as the company had to deal with perceived weakness in its billing pipeline in Q2.

Salesforce Chief Operating Officer Keith Block in a company concall informed its customers in the commerce space during the quarter comprised GNC Holdings, while its other enterprise customers entailed PNC Bank, KONE, Shiseido and Telecom Argentina.

In Q3, the company signed seven financial customers including Citigroup Inc. and PNC Financial Services Group Inc., noted Keith Block. (Source: “Salesforce says won customers including Citigroup, PNC Bank in Q3,” Reuters, November 17, 2016.)

Salesforce posted non-GAAP earnings per share of $0.24, ahead of analyst estimates of $0.21.

“We had outstanding execution in the third quarter, closing a record number of large transactions as more and more companies look to Salesforce as their trusted advisor to redefine their customer strategies,” said Block. “No other enterprise software company is delivering customer success at this scale — and certainly not at this pace.” (Source:, inc., op cit.)

For the fourth quarter, the company has given revenue guidance of $2.267 billion to $2.277 billion, an increase of 25% to 26% year-over-year.

GAAP loss per share is projected to be ($0.10) to ($0.09), while non-GAAP diluted earnings per share is projected to be $0.24 to $0.25.

For FY17, revenue is forecasted to be approximately $8.365 billion to $8.375 billion, a 25% to 26% year-over-year increase. “We delivered another strong quarter of booked business on and off the balance sheet, which is now more than $12 billion, up 27% year-over-year,” said Mark Hawkins, CFO, Salesforce.

“We are pleased to raise our fiscal full-year 2017 revenue guidance by $50 million to $8.375 billion at the high end of the range.”