Research Desk Line-up: Workday Post Earnings Coverage
LONDON, UK / ACCESSWIRE / June 8, 2017 / Pro-Trader Daily publishes post-earnings coverage on Salesforce.com, inc. (NYSE: CRM) following the Company's reporting of its first quarter fiscal 2018 financial results on May 18, 2017. The global leader in CRM outperformed revenue and earnings expectations and also raised its fiscal 2018 guidance. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Application Software industry. Pro-TD has currently selected Workday, Inc. (NYSE: WDAY) for due-diligence and potential coverage as the Company announced on June 01, 2017, its financial results for Q1 FY18 which ended on April 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Workday when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on CRM; also brushing on WDAY. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/'symbol=CRM
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Earnings Reviewed
For its fiscal first quarter ended April 30, 2017, Salesforce's revenue surged 25% to $2.39 billion compared to revenue of $1.92 billion for Q1 FY17. The Company's revenue numbers surpassed analysts' consensus estimates of $2.35 billion.
For Q1 FY18, Salesforce's Subscription and support revenues grew 24% to $2.20 billion compared to revenue of $1.78 billion for Q1 FY17. The Company's Professional services and other revenues soared 32% to $186.67 million in the reported quarter compared to revenue of $141.11 million in the prior year's corresponding quarter. On geographical basis, Salesforce reported revenue growth of 29% in EMEA and 26% in APAC and 36% in the Americas, respectively, on a y-o-y basis.
Salesforce reported Q1 FY18 net loss of $9.2 million, or $0.01 per share, compared with income of $38.8 million, or $0.06 per share, in Q1 FY17. However, on a non-GAAP basis, the Company posted earnings of $0.28 per share compared with $0.24 per share recorded in the year ago same period. Salesforce's earnings exceeded Wall Street's expectations of $0.26 per share.
Cash Matters
During Q1 FY18, Salesforce's cash generated from operations was $1.23 billion, an increase of 17% on a y-o-y basis. The Company recorded free cash flow of $1.07 billion in the reported period. As of April 30, 2017, Salesforce's total cash, cash equivalents, and marketable securities were at $3.22 billion.
Salesforce's deferred revenue on the balance sheet as of April 30, 2017, was $5.04 billion, an increase of 26% y-o-y and 27% in constant currency. The Company's unbilled deferred revenue, representing business that is contracted but unbilled and off balance sheet ended Q1 FY18 at approximately $9.6 billion, up 26% on a y-o-y basis. This includes approximately $450 million related to unbilled deferred revenue from Demandware.
Guidance
Salesforce initiated revenue, earnings per share, and deferred revenue guidance for Q2 FY18. Additionally, the Company raised its full fiscal year 2018 revenue and earnings per share guidance, while maintaining its operating cash flow guidance.
For Q2 FY18, Salesforce's revenue is projected to be approximately $2.51 billion to $2.52 billion, an increase of 23% to 24% on a y-o-y basis. The Company's GAAP diluted earnings per share is projected to be $0.00 to $0.01, while non-GAAP diluted earnings per share is estimated to be $0.31 to $0.32. On its balance sheet, the Company's deferred revenue growth is projected to be approximately 22% year-over-year.
For FY18, Salesforce is forecasting revenue in the range of approximately $10.25 billion to $10.30 billion, an increase of 22% to 23% on a y-o-y basis. The Company's GAAP diluted earnings per share is projected to be $0.06 to $0.08, while non-GAAP diluted earnings per share is projected to be $1.28 to $1.30. Operating cash flow growth is projected to be 20% to 21% year-over-year.
Stock Performance
At the closing bell, on Wednesday, June 07, 2017, Salesforce.com's stock was slightly up by 0.32%, ending the trading session at $91.39. A total volume of 3.48 million shares have exchanged hands. The Company's stock price surged 9.48% in the last three months, 29.08% in the past six months, and 9.92% in the previous twelve months. Moreover, the stock soared 33.49% since the start of the year. The stock is trading at a PE ratio of 481.00 and currently has a market cap of $64.51 billion.
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