Shares of Salesforce (CRM) were up close to 5% to $78.70 in after-hours trading on Thursday after the cloud computing company reported better-than-anticipated results for the third quarter of fiscal 2017 and gave a positive outlook.
Adjusted earnings for the quarter were 24 cents a share, while revenue jumped 24% year-over-year to $2.14 billion. Analysts surveyed by Factset were modeling adjusted earnings of 21 cents per share on revenue of $2.12 billion.
Subscription and support revenues grew 24% over last year to $1.98 billion, as professional services and other revenues advanced 39% annually to $161 million.
Shares were up 2.6% during Thursday's session but year to date are down about 4%.
For the fiscal fourth quarter, the San Francisco-based company projects adjusted earnings in the range of 24 cents to 25 cents a share on revenue between $2.27 billion and $2.28 billion, up 25% to 26% over last year. Wall Street was expecting earnings of 21 cents per share on $2.24 billion in revenue.
Salesforce estimates full-year adjusted earnings per share of 97 cents to 98 cents, with revenue rising between 25% and 26% year-over-year to $8.37 billion to $8.38 billion, and issued upbeat guidance for fiscal 2018 as well. Salesforce forecasts that revenue will gain 20% to 21% annually, totaling between $10.10 billion and $10.15 billion. Analysts were looking for $10.08 billion.
"We had outstanding execution in the third quarter, closing a record number of large transactions as more and more companies look to Salesforce as their trusted adviser to redefine their customer strategies," COO Keith Block said in a company statement. "No other enterprise software company is delivering customer success at this scale -- and certainly not at this pace."
About 11.01 million Salesforce shares traded hands on Thursday, above the stock's 30-day average volume of 8.02 million shares.