CALIFORNIA: Cloud-based enterprise software provider Salesforce reported strong revenue growth for the third quarter and raised its revenue guidance for the full year. Here are the details.
If there was any question about the momentum of cloud-based business, Salesforce (CRM) has eliminated it with recent earnings announcements, and yesterday’s was no exception. The cloud-based software giant posted third quarter revenue of $1.71 billion, up 24% year-over-year, and deferred revenue of $2.85 billion, up 28% year-over-year.
Salesforce also raised its revenue guidance for the full year to $6.65 billion from $6.64 billion.
Salesforce reported a net loss of $27.2 million in Q3 compared to $39 million in the same quarter last year.
The strong top-line growth stands in contrast to other players in the enterprise software market that have built their businesses on on-premises deployments and haven’t been as quick to move to the cloud. Oracle’s most recent earnings for the quarter ended August 31 had a total revenue decline of 2% year-over year. SAP reported a total revenue increase of 17% year-over-year for its most recent quarter ended September 30. SAP and Oracle also have larger total revenue than Salesforce, so it’s more challenging for them to post dramatic growth numbers.
