digibyte - Salesforce crushes FY2017 Q3, reiterates $10bn FY2018 target

Profile picture for user gonzodaddy By Den Howlett November 17, 2016
Summary:
Salesforce beats and ups outlook as it eyes $10bn revenue for FY2018

Salesforce crushed it in Q3 FY2017 with revenue of $2.14bn, up 25% year over year and $20 million above expectations.

Deferred revenue was $3.5 bn - up 23% year over year while unbilled deferred income now sits at $8.6 bn, up 28% year over year.

Cash generated was a modest $154 million, down 5% year over year while cash and equivalents now stand at $1.75 billion.

Reflecting the trend towards larger deals, professional services grew 39% year over year to $161 million while subscriptions/support grew 24% to $1.96 bn.

Salesforce is now projecting Q4 revenue at $2.267-2.277 billion, up from a consensus of $2.24 bn and up 25-26%.

For FY 2018, Salesforce now projects revenue at $10.1 to $10.15 bn.

Given the unbilled deferred number, it is no surprise that Salesforce is projecting revenue in the range $8.365-$8.375bn for FY 2017.

CEO Marc Benioff said in prepared remarks:

I'm delighted to announce that we expect to deliver our first $10 billion year during our fiscal year 2018, which puts us well on the path to reach $20 billion faster than any other enterprise software company.

More to come in Stuart Lauchlan's detailed analysis to follow.