Salesforce delivered better than expected revenue numbers in its first quarter of 2019 fiscal year. As a result, Salesforce’s stock rose 4% on Tuesday. Salesforce has gained 74 cents per share (excluding certain items), while it’s revenue has touched $3.01 billion more than the prediction which was $2.95 billion as per Thomson Reuters. According to a statement released by Salesforce, they are expecting 46-47 cents earnings per share, excluding certain items and $3.22-3.23 billion in revenue in the second quarter of 2019 fiscal year.
Salesforce’s revenue rose 25% year over year. They are getting a big portion of their revenue from subscription and support fees. In this category, the revenue was of $2.81 billion which was up by 27%, also beats the expectation of $2.73 billion. If we break the subscription revenue down by segment, Sales Cloud revenue was $965 million, Service Cloud revenue was $848 million, Marketing and Commerce Cloud revenue was $422 million, and other revenue was $575 million including Salesforce platform. Since past many years, Sales Cloud for Salesforce CRM was their biggest product, but the Q1 saw a significant growth of Service Cloud which rose by 29.3%. Even Einstein artificial intelligence technology gained more customers with around 2 billion predictions happening every day, almost double its number of last quarter.
Salesforce is in news since its $6.5 billion Mulesoft acquisition and launch of Salesforce Essentials for small businesses. The company’s forecast for the current quarter also exceeded Wall Street’s expectations. The 2019 fiscal year is looking very bright for Salesforce as the first quarter revenue numbers are a real boost for them.
