salesforce.com Delivers 36% Sales Growth in the Third Quarter
In the third quarter of fiscal year 2014, salesforce.com just reported results in line with analyst targets.
Revenues jumped 36.5% year over year, landing at $1.08 billion. That's just ahead of the average analyst estimate and management's own guidance, both of which pointed to $1.06 billion. Non-GAAP earnings increased by a penny to $0.09 per share, in line with both Wall Street's projections and Salesforce's guidance.
The strongest growth this quarter came from the services and support segment, whose sales surged 50% year over year. The segment is on the fast track to growth, but it remains a small fraction of Salesforce's overall operations with tight margins to boot. Services and support accounted for 6.6% of Salesforce's total sales this quarter, and just 0.3% of the company's gross profits.
Looking ahead, management expects a 35% revenue increase in the fourth quarter. Adjusted earnings could double to $0.06 per share.
CEO Marc Benioff celebrated "strong customer response to our next generation social and mobile cloud technologies," lifting Salesforce toward an expected $5 billion revenue performance in fiscal year 2015.
The stock gained less than 1% in after-hours trading, following a 3.1% drop during the regular Monday session. The session also included an intraday high of $58.37, setting a new all-time highs. salesforce.com shares have gained 54% over the past year.
The article salesforce.com Delivers 36% Sales Growth in the Third Quarter originally appeared on Fool.com.Fool contributor Anders Bylund has no position in any stocks mentioned. Check out Anders' bio and holdings or follow him on Twitter, LinkedIn, and Google+. The Motley Fool recommends salesforce.com. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.