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.
The Average American Is Losing Momentum on Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4%* today. Checking accounts are even worse.
But there is good news. To win qualified customers, some accounts are paying nearly 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.