Why salesforce.com Jumped

Before you go, we thought you'd like these...
Before you go close icon

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of salesforce.com (NYS: CRM) jumped today by as much as 11% after the company reported a strong first quarter.

So what: Revenue jumped 38% to $695 million, with non-GAAP earnings per share of $0.37. CEO Mark Benioff said that last year the company became the first enterprise cloud company to reach $2 billion in revenue and is already eyeing $3 billion next year. Salesforce is raising the high end of its revenue guidance to that $3 billion target.


Now what: Deferred revenue jumped 46% to $1.33 billion, although part of this was simply related to longer invoice durations. Unbilled deferred revenue is also now up to $2.7 billion. Second-quarter sales are expected to be between $724 million and $728 million, with adjusted earnings per share of $0.38 to $0.39. Full-year adjusted earnings should be between $1.60 and $1.63. The strong figures have triggered a slew of analyst upgrades, saying the company beat on just about every metric.

Interested in more info on salesforce.com? Add it to yourWatchlist.

At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned. Check out hisholdings and a short bio. The Motley Fool owns shares of salesforce.com.Motley Fool newsletter serviceshave recommended buying shares of salesforce.com and creating a bear put spread position in salesforce.com. The Motley Fool has adisclosure policy. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners