Salesforce Q2 F2018 earnings were released after closing bell tonight, and the company reported non-GAAP earnings of 33 cents per share on $2.56 billion in revenue. Analysts had been expecting 32 cents per share in non-GAAP earnings on $2.52 billion in revenue. In May, Salesforce.com, inc. (NYSE:CRM) management guided for non-GAAP earnings of 31 cents to 32 cents per share on $2.51 billion to $2.52 billion in revenue.
In the second quarter of fiscal 2017, the company reported 24 cents per share in earnings on $2.04 billion in revenue.
Salesforce Q2 F2018 earnings
On a GAAP basis, the company reported earnings of 2 cents per share, while Wall Street had been looking for a GAAP result of 1 cent per share in earnings.
Salesforce had $4.82 billion in deferred revenue, marking a 26% year-over-year increase. Unbilled deferred revenue rose 30% to about $10.4 billion, including about $625 million in unbilled deferred revenue from Demandware. Subscription and support revenues grew 26% year over year to $2.37 billion, while professional services and other revenues increased 28% to $193 million.
“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,” Salesforce Chairman and Chief Executive Marc Benioff said in a statement. “We did this faster than any other enterprise software company in history.”
Salesforce raises full-year guidance
For the third quarter, Salesforce management expects between $2.64 billion and $2.65 billion in revenue, representing a year-over-year increase of 23% to 24%. The company projects GAAP earnings of 4 cents to 5 cents per share and non-GAAP earnings of 36 cents to 37 cents per share.
The company also increased its outlook for fiscal 2018. It expects revenue to come in between $10.35 billion and $10.4 billion, also representing a 23% to 24% increase year over year. Salesforce expects full-year GAAP earnings of 7 cents to 9 cents per share and non-GAAP earnings of $1.29 to $1.31 per share for the full year.
After Salesforce Q2 F2018 earnings were released, the company’s stock declined by as much as 2.1% to $91 in after-hours trading.