Salesforce (CRM) Q4 Earnings Top, Stock Down On Co-CEO Exit
Zacks Investment Research | Feb 25, 2020 08:04PM ET
salesforce.com Inc. (NYSE:CRM) delivered better-than-expected results for fourth-quarter fiscal 2020. The company’s fiscal fourth-quarter non-GAAP earnings of 66 cents per share beat the Zacks Consensus Estimate by 20%. Nonetheless, quarterly earnings declined 6% from the year-ago quarter’s level of 70 cents, as benefits of higher revenues were more than offset by elevated operating expenses.
Salesforce’s fiscal fourth-quarter revenues of $4.85 billion jumped 35% year over year, surpassing the Zacks Consensus Estimate of $4.75 billion. Moreover, the top-line figure improved 34% in constant currency (cc). The company also noted that the acquisition Tableau in August 2019 contributed $344 million to its quarterly revenues. Excluding the sales of acquired businesses, total revenues were up 22% year over year.
The enterprise cloud computing solutions provider has been benefiting from a robust demand environment as customers are undergoing a major digital transformation. The rapid adoption of its cloud-based solutions led to the better-than-expected performance during the fiscal fourth quarter.
Quarter in Detail
Coming to the company’s business segments, revenues at Subscription and Support increased about 35% from the year-earlier period to $4.56 billion. Professional Services and Other revenues climbed 26% to $288 million.
Sales Cloud revenues grew 17% year over year to $1.23 billion. Revenues from Service Cloud, one of the company’s largest and the fastest-growing businesses, also improved 26% to $1.22 billion. Moreover, Marketing & Commerce Cloud revenues jumped 28% to $690 million. Salesforce Platform and Other revenues surged 74% to $1.43 billion.
Geographically, the company registered revenue growth of 32% in the Americas (70% of total revenues), 28% in the Asia Pacific (9%), and 49% in Europe and Middle East Asia or EMEA (21%) on a year-over-year basis.
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