Salesforce (CRM 93.33, +0.38 +0.41%), a software and customer relationship management firm, broke out to fresh all-time highs today after beating market expectations for Q2 earnings and revenues on top of guiding Q3 ahead of expectations.
By all accounts the Q2 report impressed investors. Earnings per share (EPS) came in at $0.33 while revenues grew 25.7% compared to last year to about $2.56 billion. Additionally, billings (which is distinguished by adding overall revenues and the change in deferred revenues on a quarter-over-quarter basis) were down about 26% compared to last year to about $5.04 billion.
Breaking it down, subscription and support revenues were $2.37 billion, up about 26% year-over-year, while professional services and other revenues were $193 million, an increase of 28% year-over-year. By cloud service offering, Sales Cloud performed the best by growing about 17% compared to last year to $886.4 million. Service Cloud came in at $698.5 million, Salesforce Platform and Other revenues were $466.5 million and Marketing and Commerce Cloud revenues were $317.1 million.
As mentioned, guidance was another point of strength at CRM this period. The company sees Q3 earnings and revenues ahead of market expectations at $0.36-0.37 and $2.64-2.65 billion, respectively. Also for Q3, CRM now sees deferred revenue growth between 18-19%. For the Full Year FY18, CRM sees Eps of $1.29-1.31 (up from $1.28-1.30) on revenues between $10.35-10.40 billion (up from $10.25-10.30 billion) with operating cash flow growth projected to be 20-21% year-over-year.
The stock follows suit today as impressive results and guidance show through in trading action. As mentioned, CRM notched a new all-time high today as the stock now boasts gains of about 34% YTD.