Yahoo Finance Salesforce Continued to Beat Analyst Expectations in Fiscal 3Q16
Why Did Salesforce Raise Fiscal 2016 Guidance Again?
Salesforce posted double-digit revenue growth in fiscal 3Q16
On November 18, 2015, Salesforce (CRM) reported its fiscal 3Q16 results. The company posted revenue and non-GAAP (generally accepted accounting principles) EPS (earnings per share) of $1.7 billion and $0.21 per share, respectively. Salesforce’s revenues and EPS beat analyst expectations by $10.1 million and 2 cents per share, respectively.
The company’s revenue of $1.7 billion grew 24% on a YoY (year-over-year) basis. On a constant currency basis, this growth was 27%.
Operating performance
In fiscal 3Q16, Salesforce’s subscription and support revenues, which contributed 93% towards overall revenues, stood at $1.6 billion. Professional services, which contributed the remaining 7% towards overall revenues, stood at $115.6 million. On a YoY basis, the company posted an increase of 24% and 22% for these segments, respectively.
Dollar appreciation continued to impact Salesforce revenue performance
Currency fluctuations, specifically US dollar appreciation (UUP) in relation to other currencies, impacted Salesforce too. Currency fluctuation had a ~3% impact on Salesforce’s overall revenue growth. IBM (IBM) in its recent fiscal 3Q15 earnings blamed the US dollar for its revenue fall. Microsoft (MSFT) and ServiceNow (NOW) were some other technology players who blamed the dollar’s appreciation for their recent performances though both companies managed to beat analyst expectations.
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