Salesforce.com, Inc. (NYSE: CRM) released fiscal third-quarter financial results after markets closed Tuesday. The firm said that it had $1.74 in earnings per share (EPS) and $5.42 billion in revenue, compared with consensus estimates that called for $0.75 in EPS and $5.25 billion in revenue. The same period from last year had $0.75 in EPS and $4.51 billion in revenue.

Management noted that the company had another record quarter. At the same time, it announced that it is acquiring Slack in a cash-and-stock deal.

Under the terms of the acquisition, Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share, representing an enterprise value of approximately $27.7 billion based on the closing price of Salesforce’s common stock on November 30.

In terms of earnings, revenues grew 20% year over year, and 19% in constant currency in the third quarter.

Subscription and support revenues totaled $5.085 billion, an increase of 20.0%. Professional services and other revenues increased by 21.9% to $334 million.

Looking ahead to the fiscal fourth quarter, the company expects to see EPS in the range of $0.73 to $0.74 and revenue in the range of $5.665 billion to $5.675 billion. Consensus estimates are calling for $0.86 in EPS and $5.52 billion in revenue for the coming quarter.

Total cash, cash equivalents and marketable securities at the end of the first quarter were $9.49 billion.

Shares of Salesforce closed Tuesday at $241.61, with a 52-week range of $115.29 to $284.50. The consensus analyst price target is $281.03. Following the announcement, the stock was initially down over 3% at $233.00 in the after-hours session.

Get Our Free Investment Newsletter

I have read, and agree to the Terms of Use

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.