Salesforce (CRM) Tops Q2 EPS, Revenues; Issues Solid Outlook

Salesforce (NYSE: CRM) reported Q2 EPS of $1.44, versus the analyst estimate of $0.67. Revenue for the quarter came in at $5.15 billion versus the consensus estimate of $4.9 billion.

Second quarter GAAP diluted earnings per share was $2.85, and non-GAAP diluted earnings per share was $1.44. Mark-to-market accounting of the company\'s strategic investments, required by ASU 2016-01, benefited GAAP diluted earnings per share by $0.55 based on a U.S. tax rate of 25% and non-GAAP diluted earnings per share by $0.58 based on a non-GAAP tax rate of 22%. GAAP diluted earnings per share was also benefited by $2.17 as the company changed its international corporate structure, which included the consolidation of intangible property, resulting in a $2 billion net tax benefit related to foreign deferred tax assets. Please note that this had no impact on Non-GAAP diluted earnings per share, as the company utilizes a fixed long-term projected non-GAAP tax rate, which generally excludes effects for discrete events.

"It's humbling to have had one of the best quarters in Salesforce's history against the backdrop of multiple crises seriously affecting our communities around the world," said Marc Benioff, Chair and CEO of Salesforce. "Salesforce was founded on our belief in stakeholder capitalism and our core values of trust, customer success, innovation and equality. Our success in the quarter brought all of this together with the power of our Customer 360 platform, the resilience of our business model, putting our customers first and doing our part to take care of all of our stakeholders. We know that together we have an opportunity to emerge from these times even stronger."

GUIDANCE:

Salesforce sees Q3 2021 EPS of $0.73-$0.74, versus the consensus of $0.76. Salesforce sees Q3 2021 revenue of $5.24-5.25 billion, versus the consensus of $5.01 billion.

Salesforce sees FY2021 EPS of $3.72-$3.74, versus the consensus of $2.95. Salesforce sees FY2021 revenue of $20.7-20.8 billion, versus the consensus of $20.7 billion.

For earnings history and earnings-related data on Salesforce (CRM) click here.

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