Salesforce Q1 Earnings Highlights: Revenue And EPS Beats, $42B Remaining In Revenue Under Contract, Guidance And More

Customer relationship management and software-as-a-service giant Salesforce.com Inc CRM reported first-quarter financial results after market close Tuesday. Here are the key highlights.

What Happened: Salesforce reported first-quarter revenue of $7.41 billion, up 24% year-over-year. The total came in ahead of Street estimates of $7.38 billion, according to data from Benzinga Pro.

The company reported first-quarter earnings of 98 cents per share, beating a Street estimate of 94 cents per share.

“We had another great quarter, delivering $7.4 billion in revenue. There is no greater measure of our resilience and the momentum in our business than the $42 billion we have in remaining performance obligation, representing all future revenue under contract,” Salesforce co-CEO Marc Benioff said.

Co-CEO Bret Taylor highlighted the company’s durability and the demand seen by customers.

“Salesforce has become even more strategic and relevant to our customers as we are providing them with the agility and resilience they need to drive growth and efficiency in these uncertain economic times,” Taylor said.

Related Link: What To Watch For When Salesforce Reports Earnings After The Bell 

What’s Next: Along with its first-quarter financial results, Salesforce provided a look at its guidance for the second quarter and full fiscal year.

Salesforce sees second-quarter revenue hitting a range of $7.69 billion to $7.7 billion and earnings per share of $1.01 to $1.02. Both figures came in shy of analyst estimates, according to Benzinga Pro data.

For the full fiscal year, Salesforce is guiding for revenue to hit a range of $31.7 billion to $31.8 billion versus a current Street estimate of $32.06 billion. Full year earnings per share are expected to be in range of $4.74 to $4.76, ahead of Street estimates of $4.65.

“While delivering incredible growth at scale, we’re committed to consistent margin expansion and cash flow growth as part of our long-term plan to drive both top and bottom line performance,” Benioff said.

CRM Price Action: Salesforce shares are up 5% to $170.10 in after hours trading Tuesday, erasing a 2% decline in the regular trading session.