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Compared to Estimates, Salesforce.com (CRM) Q3 Earnings: A Look at Key Metrics

The headline numbers for Salesforce.com (CRM) give insight into how the company performed in the quarter ended October 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals. Read More...

Salesforce.com (CRM) reported $9.44 billion in revenue for the quarter ended October 2024, representing a year-over-year increase of 8.3%. EPS of $2.41 for the same period compares to $2.11 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $9.34 billion, representing a surprise of +1.13%. The company delivered an EPS surprise of -0.82%, with the consensus EPS estimate being $2.43.

While investors closely watch year-over-year changes in headline numbers — revenue and earnings — and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company’s underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock’s price performance.

Here is how Salesforce.com performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Remaining performance obligation (RPO) – Current: $26.4 billion compared to the $26.04 billion average estimate based on eight analysts.

  • Remaining performance obligation (RPO) – Total: $53.1 billion versus the five-analyst average estimate of $53.71 billion.

  • Remaining performance obligation (RPO) – Noncurrent: $26.7 billion compared to the $27.67 billion average estimate based on five analysts.

  • Geographic Revenue- Americas: $6.22 billion versus the two-analyst average estimate of $6.54 billion. The reported number represents a year-over-year change of +6.1%.

  • Geographic Revenue- Asia Pacific: $996 million versus $926.76 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +15.8% change.

  • Geographic Revenue- Europe: $2.23 billion versus the two-analyst average estimate of $1.87 billion. The reported number represents a year-over-year change of +11.5%.

  • Revenue- Professional services and other: $565 million versus the 12-analyst average estimate of $528.54 million. The reported number represents a year-over-year change of -2.4%.

  • Revenue- Subscription and support: $8.88 billion versus $8.81 billion estimated by 12 analysts on average. Compared to the year-ago quarter, this number represents a +9.1% change.

  • Revenue- Subscription and support- Service: $2.29 billion compared to the $2.26 billion average estimate based on four analysts. The reported number represents a change of +10.3% year over year.

  • Revenue- Subscription and support- Marketing and Commerce: $1.33 billion versus the four-analyst average estimate of $1.29 billion. The reported number represents a year-over-year change of +8.5%.

  • Revenue- Subscription and support- Platform and Other: $1.83 billion versus $1.81 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +8.2% change.

  • Revenue- Subscription and support- Integration and Analytics: $1.31 billion versus the four-analyst average estimate of $1.40 billion.

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