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Compared to Estimates, Salesforce.com (CRM) Q2 Earnings: A Look at Key Metrics
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Salesforce.com (CRM - Free Report) reported $8.6 billion in revenue for the quarter ended July 2023, representing a year-over-year increase of 11.4%. EPS of $2.12 for the same period compares to $1.19 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $8.52 billion, representing a surprise of +0.93%. The company delivered an EPS surprise of +11.58%, with the consensus EPS estimate being $1.90.
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.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
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:
Remaining performance obligation (RPO) - Current: $24.1 billion versus $23.7 billion estimated by six analysts on average.
Remaining performance obligation (RPO) - Total: $46.6 billion compared to the $46.8 billion average estimate based on five analysts.
Remaining performance obligation (RPO) - Noncurrent: $22.5 billion compared to the $23.1 billion average estimate based on five analysts.
Full time equivalent headcount: 70456 versus the three-analyst average estimate of 73746.43.
Geographic Revenue- Americas: $5.77 billion compared to the $5.91 billion average estimate based on two analysts. The reported number represents a change of +9.7% year over year.
Geographic Revenue- Asia Pacific: $860 million compared to the $831.36 million average estimate based on two analysts. The reported number represents a change of +20.5% year over year.
Geographic Revenue- Europe: $1.97 billion compared to the $1.78 billion average estimate based on two analysts. The reported number represents a change of +13.1% year over year.
Revenue- Professional services and other: $597 million versus the 13-analyst average estimate of $624.77 million. The reported number represents a year-over-year change of +3.5%.
Revenue- Subscription and support: $8.01 billion versus $7.90 billion estimated by 13 analysts on average. Compared to the year-ago quarter, this number represents a +12.1% change.
Revenue- Subscription and support- Service: $2.05 billion versus the five-analyst average estimate of $2.01 billion. The reported number represents a year-over-year change of +12.1%.
Revenue- Subscription and support- Marketing and Commerce: $1.24 billion versus $1.21 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +10.4% change.
Revenue- Subscription and support- Platform and Other: $1.64 billion compared to the $1.64 billion average estimate based on five analysts. The reported number represents a change of +10.8% year over year.
Shares of Salesforce.com have returned -5.5% over the past month versus the Zacks S&P 500 composite's -1.7% 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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Compared to Estimates, Salesforce.com (CRM) Q2 Earnings: A Look at Key Metrics
Salesforce.com (CRM - Free Report) reported $8.6 billion in revenue for the quarter ended July 2023, representing a year-over-year increase of 11.4%. EPS of $2.12 for the same period compares to $1.19 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $8.52 billion, representing a surprise of +0.93%. The company delivered an EPS surprise of +11.58%, with the consensus EPS estimate being $1.90.
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.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
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:
- Remaining performance obligation (RPO) - Current: $24.1 billion versus $23.7 billion estimated by six analysts on average.
- Remaining performance obligation (RPO) - Total: $46.6 billion compared to the $46.8 billion average estimate based on five analysts.
- Remaining performance obligation (RPO) - Noncurrent: $22.5 billion compared to the $23.1 billion average estimate based on five analysts.
- Full time equivalent headcount: 70456 versus the three-analyst average estimate of 73746.43.
- Geographic Revenue- Americas: $5.77 billion compared to the $5.91 billion average estimate based on two analysts. The reported number represents a change of +9.7% year over year.
- Geographic Revenue- Asia Pacific: $860 million compared to the $831.36 million average estimate based on two analysts. The reported number represents a change of +20.5% year over year.
- Geographic Revenue- Europe: $1.97 billion compared to the $1.78 billion average estimate based on two analysts. The reported number represents a change of +13.1% year over year.
- Revenue- Professional services and other: $597 million versus the 13-analyst average estimate of $624.77 million. The reported number represents a year-over-year change of +3.5%.
- Revenue- Subscription and support: $8.01 billion versus $7.90 billion estimated by 13 analysts on average. Compared to the year-ago quarter, this number represents a +12.1% change.
- Revenue- Subscription and support- Service: $2.05 billion versus the five-analyst average estimate of $2.01 billion. The reported number represents a year-over-year change of +12.1%.
- Revenue- Subscription and support- Marketing and Commerce: $1.24 billion versus $1.21 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +10.4% change.
- Revenue- Subscription and support- Platform and Other: $1.64 billion compared to the $1.64 billion average estimate based on five analysts. The reported number represents a change of +10.8% year over year.
View all Key Company Metrics for Salesforce.com here>>>Shares of Salesforce.com have returned -5.5% over the past month versus the Zacks S&P 500 composite's -1.7% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.