By Chris Thompson
Salesforce has continued its stellar financial performance by announcing a record third fiscal quarter for 2019, delivering revenue of $3.39 billion.
Having carved out its status as the global leader in CRM, Salesforce’s financial results indicate we’ll see further dominance over the market in the coming years, as revenue guidance increases across the board.
Salesforce’s third-quarter revenue of $3.39 billion is an increase of 26% year-over-year, while fourth-quarter revenue guidance has been increased from $3.551 billion to $3.561 billion.
Salesforce delivered the following results for its fiscal third quarter:
Revenue: Total third-quarter revenue was $3.39 billion, an increase of 26% year-over-year, and 26% in constant currency. Subscription and support revenues were $3.17 billion, an increase of 26% year-over-year. Professional services and other revenues were $224 million, an increase of 15% year-over-year.
Earnings per Share: Third quarter GAAP diluted earnings per share was $0.13, and non-GAAP diluted earnings per share was $0.61. Mark-to-market accounting of the company’s strategic investments, required by ASU 2016-01, benefited GAAP diluted earnings per share by $0.07 and non-GAAP diluted earnings per share by $0.06.
Cash: Cash generated from operations for the third quarter was $143 million, an increase of 14% year-over-year. Total cash, cash equivalents and marketable securities ended the third quarter at $3.45 billion.
Unearned Revenue: Unearned revenue on the balance sheet as of October 31, 2018 was $5.38 billion, an increase of 25% year-over-year, and 26% in constant currency.
Remaining Performance Obligation: Remaining performance obligation, representing future revenues that are under contract but have not yet been recognized, ended the third quarter at approximately $21.2 billion, an increase of 34% year-over-year. This includes approximately $300 million related to the remaining performance obligation from MuleSoft. Current remaining performance obligation, which represents the future revenues under contract expected to be recognized over the next 12 months, ended the third quarter at approximately $10.0 billion, an increase of 27% year-over-year.
“Given the strength of this quarter’s results and the incredible customer demand we are seeing, we are again raising our FY19 revenue guidance and initiating our full year fiscal 2020 revenue guidance at $16 billion at the high end of the range,” said Keith Block, co-CEO, Salesforce. “Companies across every industry, in every geography have a mandate to digitally transform their businesses and are turning to Salesforce as a strategic partner.”
“I’m thrilled that Salesforce will be the fastest enterprise software company in history to reach $16 billion in revenue,” said Marc Benioff, chairman and co-CEO, Salesforce. “I would like to thank all of our Ohana who make everything we do possible.”
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