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Salesforce had a positive third quarter (Q3) report. The cloud computing company revealed high earnings per share (EPS) and a rise in revenue. The corporation’s stock surged after the initial news.
Salesforce’s revenue report
Salesforce beat estimates with its revenue, making $3.39 billion, exceeding the expected $3.37 billion. Profits increased by 26% since 2017. The company also overdelivered on EPS, with $0.61 per share, more than the $0.50 projected by financial experts.
Why Salesforce succeeded
The corporation outperformed because of its wide offering of software applications to clients in the sales and marketing departments of their businesses. Salesforce has been able to capitalise on more consumers moving onto cloud services to cover its customer relationship management services.
Salesforce’s sales also grew after buying Mulesoft, another technology company. The $6.5 billion purchase increased the corporation's profits. The merger helped customers save time by implementing platforms to connect apps and services.
‘We believe that MULE is significantly outperforming expectations in both the quarter and the year and is already ahead of annual targets with another full quarter left to go,’ noted Alex Zukin, an analyst at Piper Jaffray.
Salesforce expectations for Q4
Salesforce is looking to the technology of the future to increase sales in Q4. The cloud software company is conducting heavy research into using analytics and artificial intelligence to help customers better interpret data about their businesses.
The corporation projects EPS to $0.55 a share for Q4. Salesforce also projects revenue to be $3.55 billion.