Salesforce.com (NYSE: CRM) reported fiscal 2018 second-quarter results on Aug. 22. The leading provider of customer relationship management solutions is enjoying sharp gains in sales and profits as it expands its share of the global enterprise software market.
Salesforce.com results: The raw numbers
What happened with Salesforce.com this quarter?
Total revenue jumped 26% year over year to $2.56 billion, as Salesforce delivered more than 20% growth -- on both a reported and constant-currency basis -- in all of its major markets.
Impressively, Salesforce gained market share in each of its core business segments.
Signs point toward more strong growth ahead, with Salesforce's deferred revenue -- basically subscription revenue that's been booked from contracts but not earned yet -- leaping 26% to $4.82 billion as of July 31. And unbilled deferred revenue -- essentially business that is contracted but not yet invoiced -- rose 30%, to $10.4 billion.
All told, non-GAAP earnings per share -- which excludes stock-based compensation, acquisition-related expenses, income tax adjustments, and certain other items -- soared 38% to $0.33. And, importantly, Salesforce continues to strengthen its cash generation, with operating cash flow surging 32% to $331 million.
For the third quarter, Salesforce forecasts revenue of $2.64 billion to $2.65 billion, representing growth of 23% to 24%. GAAP and non-GAAP earnings per share are projected to be $0.04 to $0.05 and $0.36 to $0.37, respectively. Salesforce also expects deferred revenue to grow 18% to 19% year over year.
Additionally, Salesforce boosted its guidance for fiscal 2018 for the third time, including:
- Revenue of $10.35 billion to $10.40 billion, up from a previous forecast of $10.25 billion to $10.30 billion
- GAAP EPS of $0.07 to $0.09, up from $0.06 to $0.08
- Non-GAAP EPS of $1.29 to $1.31, versus $1.28 to $1.30
"We had a phenomenal quarter of growth, reaching a huge milestone for the company, becoming the first enterprise cloud software company to break the $10 billion revenue run rate," Chairman and CEO Marc Benioff said in a press release. "Our continued momentum as the leader in CRM, the fastest-growing segment of our industry, combined with more than $15 billion in billed and unbilled deferred revenue, puts us well on the path to $20 billion and beyond."
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