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Salesforce.com (CRM) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

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For the quarter ended January 2023, Salesforce.com (CRM - Free Report) reported revenue of $8.38 billion, up 14.4% over the same period last year. EPS came in at $1.68, compared to $0.84 in the year-ago quarter.

The reported revenue represents a surprise of +4.99% over the Zacks Consensus Estimate of $7.99 billion. With the consensus EPS estimate being $1.35, the EPS surprise was +24.44%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Salesforce.com performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Revenue- Professional services and other: $595 million compared to the $595.25 million average estimate based on 13 analysts. The reported number represents a change of +19.5% year over year.
  • Revenue- Subscription and support: $7.79 billion versus $7.39 billion estimated by 13 analysts on average. Compared to the year-ago quarter, this number represents a +14.1% change.
  • Revenue- Subscription and support- Service: $1.92 billion versus $1.88 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +12.5% change.
  • Revenue- Subscription and support- Marketing and Commerce: $1.18 billion versus the four-analyst average estimate of $1.14 billion. The reported number represents a year-over-year change of +12.5%.
  • Revenue- Subscription and support- Platform and Other: $1.56 billion versus $1.52 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +15.3% change.
  • Revenue- Subscription and support- Data: $1.34 billion versus $1.14 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +18.3% change.
  • Revenue- Subscription and support- Sales: $1.79 billion versus $1.72 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +12.7% change.

View all Key Company Metrics for Salesforce.com here>>>

Shares of Salesforce.com have returned -2.6% over the past month versus the Zacks S&P 500 composite's -2.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.


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