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Salesforce.com (CRM) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
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Salesforce.com (CRM - Free Report) reported $8.72 billion in revenue for the quarter ended October 2023, representing a year-over-year increase of 11.3%. EPS of $2.11 for the same period compares to $1.40 a year ago.
The reported revenue represents a surprise of +0.12% over the Zacks Consensus Estimate of $8.71 billion. With the consensus EPS estimate being $2.06, the EPS surprise was +2.43%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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:
Remaining performance obligation (RPO) - Current: $23.9 billion versus $23.26 billion estimated by eight analysts on average.
Remaining performance obligation (RPO) - Total: $48.3 billion versus $45.42 billion estimated by six analysts on average.
Remaining performance obligation (RPO) - Noncurrent: $24.4 billion versus the five-analyst average estimate of $22.3 billion.
Full time equivalent headcount: 70,843 compared to the 72,594 average estimate based on three analysts.
Geographic Revenue- Americas: $5.86 billion compared to the $6.11 billion average estimate based on two analysts. The reported number represents a change of +9.4% year over year.
Geographic Revenue- Asia Pacific: $860 million versus the two-analyst average estimate of $858.32 million. The reported number represents a year-over-year change of +17.7%.
Geographic Revenue- Europe: $2 billion versus the two-analyst average estimate of $1.74 billion. The reported number represents a year-over-year change of +14.5%.
Revenue- Professional services and other: $579 million versus the 14-analyst average estimate of $622.63 million. The reported number represents a year-over-year change of -4.1%.
Revenue- Subscription and support: $8.14 billion versus the 14-analyst average estimate of $8.09 billion. The reported number represents a year-over-year change of +12.6%.
Revenue- Subscription and support- Service: $2.07 billion versus the five-analyst average estimate of $2.07 billion. The reported number represents a year-over-year change of +11.8%.
Revenue- Subscription and support- Marketing and Commerce: $1.23 billion versus the five-analyst average estimate of $1.25 billion. The reported number represents a year-over-year change of +9%.
Revenue- Subscription and support- Platform and Other: $1.69 billion versus $1.69 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +11.4% change.
Shares of Salesforce.com have returned +12% over the past month versus the Zacks S&P 500 composite's +10.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Salesforce.com (CRM) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
Salesforce.com (CRM - Free Report) reported $8.72 billion in revenue for the quarter ended October 2023, representing a year-over-year increase of 11.3%. EPS of $2.11 for the same period compares to $1.40 a year ago.
The reported revenue represents a surprise of +0.12% over the Zacks Consensus Estimate of $8.71 billion. With the consensus EPS estimate being $2.06, the EPS surprise was +2.43%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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:
- Remaining performance obligation (RPO) - Current: $23.9 billion versus $23.26 billion estimated by eight analysts on average.
- Remaining performance obligation (RPO) - Total: $48.3 billion versus $45.42 billion estimated by six analysts on average.
- Remaining performance obligation (RPO) - Noncurrent: $24.4 billion versus the five-analyst average estimate of $22.3 billion.
- Full time equivalent headcount: 70,843 compared to the 72,594 average estimate based on three analysts.
- Geographic Revenue- Americas: $5.86 billion compared to the $6.11 billion average estimate based on two analysts. The reported number represents a change of +9.4% year over year.
- Geographic Revenue- Asia Pacific: $860 million versus the two-analyst average estimate of $858.32 million. The reported number represents a year-over-year change of +17.7%.
- Geographic Revenue- Europe: $2 billion versus the two-analyst average estimate of $1.74 billion. The reported number represents a year-over-year change of +14.5%.
- Revenue- Professional services and other: $579 million versus the 14-analyst average estimate of $622.63 million. The reported number represents a year-over-year change of -4.1%.
- Revenue- Subscription and support: $8.14 billion versus the 14-analyst average estimate of $8.09 billion. The reported number represents a year-over-year change of +12.6%.
- Revenue- Subscription and support- Service: $2.07 billion versus the five-analyst average estimate of $2.07 billion. The reported number represents a year-over-year change of +11.8%.
- Revenue- Subscription and support- Marketing and Commerce: $1.23 billion versus the five-analyst average estimate of $1.25 billion. The reported number represents a year-over-year change of +9%.
- Revenue- Subscription and support- Platform and Other: $1.69 billion versus $1.69 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +11.4% change.
View all Key Company Metrics for Salesforce.com here>>>Shares of Salesforce.com have returned +12% over the past month versus the Zacks S&P 500 composite's +10.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.