This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Salesforce.com Beats Estimates, Shares Choppy

Stocks in this article: CRM

NEW YORK (TheStreet) -- Salesforce.com (CRM) shares were swinging between gains and losses in afterhours trading Monday, as investors braced for developments out of the company's massive annual Dreamforce developers' conference and projected fourth-quarter earnings below expectations.

Shares of the customer relationship giant were down 0.74% to $55.10 at last check.

During the company's quarterly conference call, CEO Marc Benioff spoke about the company's revamped mobile platform Salesforce1, which the company revealed on Monday ahead of a more detail announcement expected on Tuesday at Dreamforce.

"The impact of Salesforce1 is a completely new approach to our platform as well as our sales cloud and marketing cloud," Benioff said on the call. "It will change how our customers run their customers and connect with their customers."

San Francisco-based salesforce.com expects fiscal fourth-quarter revenue to be between $1.12 billion and $1.13 billion, versus the average analyst estimate of $1.12 billion. it expects to earn between 5 and 6 cents per share, below the consensus estimate of 7 cents.

For the third-quarter, salesforce reported a 36% year-over-year increase in sales to $1.08 billion, benefiting it says, from the acquisition of email marketing firm ExactTarget, a deal that closed in July. Subscription and support revenues came in at $1 billion, a 36% increase. Professional services and other revenues grew 50% to $72 million.

A total revenue of $1.055 billion was expected, according to analysts surveyed by Thomson Reuters.  Deferred revenue increased 34% to $1.73 billion.

"Salesforce.com is the first enterprise cloud computing company to deliver a $1 billion quarter, with outstanding third quarter revenue growth at 36%," said Benioff. "Given the strong customer response to our next generation social and mobile cloud technologies, I'm delighted to announce that we expect to deliver our first $5 billion year during our fiscal year 2015."

Third quarter earnings per share of 9 cents a share came in as expected.

Gross margin declined to 75.1% from 76.4%, amid a 44% rise in input costs. Operating expenses rose 38% as research and development costs jumped 50%.

-- Written by Andrea Tse

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs