While many are of the opinion that the stock is overvalued, the market touted Salesforce to earn 55 cents a share on revenue of about $3.5 billion. This is almost 25% higher top-line than a year ago.
Unearned revenue on the balance sheet as of January 31, 2019 was $8.56 billion, up 22% year-over-year. For the year, revenue grew 26% to $13.28 billion, generating earnings of $1.43 per diluted share.
“This is just the beginning, which is why we’re now targeting $26 to $28 billion in revenue by FY23 – organically doubling our revenue again in the next four years,” said Salesforce co-CEO Keith Block.
LOOKING FORWARD
In the upcoming first-quarter of fiscal 2020, Salesforce sees quarterly revenue grow about 22% to hit $3.67-3.68 billion, generating GAAP EPS of $0.10-0.11 and Non-GAAP EPS of $0.60-0.61.
For the fiscal year 2020, the company touts revenue to jump 20-21% and reach between $15.95 and $16.05 billion. Salesforce expects to earn 66 to 68 cents per share on a GAAP basis, and $2.74-2.76 per adjusted share.
Despite top-line and bottom-line results beating the Street consensus, the stock fell in after-market trade as investors did not take kindly to the tepid outlook.