salesforce.com, inc.(NYSE:CRM) in the third quarter FY 17 has reported 25% growth in the total revenue to $2.14 billion year-over-year, and posted 27% growth in constant currency. CRM has beaten the analysts’ expectations of consensus revenue of $2.12 billion. The subscription and support revenues grew 24% to $1.98 billion year-over-year and the Professional services and other revenues registered a 39% growth to $161 million year-over-year. CRM is expected to deliver the first $10 billion year during FY 18, which puts them on the path to reach $20 billion faster than any other enterprise software company. Most of the company’s revenue growth has been organic, although CRM has acquired at least 11 companies since December 2015.
Additionally, the deferred revenue grew 23% to $3.50 billion, while unbilled deferred revenue, enhanced 28% to over $8.6 billion.
Moreover, in the 3Q FY 17 CRM posted the non-GAAP diluted earnings per share was $0.24, beating the analysts’ expectation for earnings per share excluding certain items of 21 cents. CRM reported a net loss of $37.3 million in 3Q FY 17 compared with a net loss of $25.2 million reported in 3Q FY 16.
CRM enhanced full FY17 revenue by $50 million to $8.375 billion as well as non-GAAP earnings per share guidance. But, the group lowered the GAAP earnings per share guidance. However, CRM has also initiated the revenue guidance for FY 18.
For Q4 FY17, salesforce.com expects the revenue in the range $2.267 billion to $2.277 billion, which is a rise of 25% to 26% year-over-year. Deferred revenue rise is forecasted at 22% to 23% year-over-year. For fiscal year of 2017, the revenue is forecasted to over $8.365 billion to $8.375 billion, rising by 25% to 26% year-over-year. The GAAP diluted earnings per share is projected to be $0.24 to $0.25, while non-GAAP diluted earnings per share is projected to be $0.97 to $0.98. CRM is expecting the Operating cash flow growth to be 20% to 21% year-over-year.
In addition, CRM forecasts over $10.1 billion to $10.15 billion revenue for fiscal year of 2018, which is 21% year-over-year growth.
CRM stock surged over 7.2% in pre-market today (November 18th, 2016; Source: Google Finance) and might maintain a bullish momentum today. According to tipranks.com, 34 analysts has covered the stock while recommend a “Strong Buy”. CRM has an average price target of $93.10, which is a further upside of 23.82%.