NEW YORK (TheStreet) Shares of Salesforce.com (CRM) plunged 5.2% to $52.71 following third-quarter earnings that largely beat Wall Street estimates, and signs the company could generate over $5 billion in revenue in just two short years.
For the third quarter, salesforce.com revenues rose 36% year over year to $1.08 billion, as it benefited from the acquisition of email marketing firm ExactTarget. Subscription and support revenues rose 36% to $1 billion, while professional services and other revenues grew 50% to $72 million. Deferred revenue increased 34% to $1.73 billion.
The San Francisco-based company earned 9 cents a share, with analysts surveyed by Thomson Reuters looking for the company to generate $1.055 billion in revenue, earning 9 cents on a non-GAAP basis.
Going forward, salesforce said it expects to generate between $1.12 and $1.13 billion in revenue, earning between 5 and 6 cents per share, as the company rolls out new products, including Salesforce1.
|Salesforce.com CEO Marc Benioff|
"The impact of Salesforce1 is a completely new approach to our platform as well as our sales cloud and marketing cloud," CEO Marc Benioff said on the earnings call. "It will change how our customers run their customers and connect with their customers."
Analysts expect salesforce to generate $1.12 billion in sales, earning 7 cents per share.
Benioff also noted that salesforce expects to generate over $5 billion in revenue in fiscal 2015. "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," Benioff said on the call.