Goldman Sachs reiterated a Conviction Buy on salesforce.com (NYSE: CRM) with a price target of $74. Comments follow strong Q1 results.

Analyst Heather Bellini said, "Revenue of $1.227bn grew +37% yoy versus consensus of $1.209bn (+35% yoy) while non-GAAP EPS of $0.11 was a penny better than the Street. Guidance for the quarter was for revenue to fall within a range of $1.205bn - $1.210bn (+35.0% to 35.6% yoy) and for non-GAAP EPS to be between $0.09 - $0.10. All key metrics showed upside versus expectations. Deferred revenue grew 34% yoy to $2.32bn (consensus +32%), ahead of management’s forecast of low 30% growth. As such, coupled with the upside in sales, bookings (defined as revenue plus deferred on the cash flow statement) increased 35% yoy to $1.029bn versus the consensus forecast of $1.0bn (+31%). CFO increased 67% yoy to $473mn, well ahead of the Street at $328mn (+16%)."

"For FY15, management guided to revenue of $5.30bn-5.34bn (30-31% yoy) versus the Street at $5.29bn (+30% yoy) and prior guidance of $5.25bn- 5.30bn (+29-30%). FY15 Non-GAAP EPS was forecasted to be in a range of $0.49-0.51 versus consensus of $0.49 and prior guidance of $0.48-$0.50. We note that management maintained its full year CFO forecast (post the considerable 1Q outperformance) of mid 20s yoy growth. If we assume this level implies growth of 23-27% it suggests a range of $1.077bn - $1.11bn versus consensus of $1.08bn (GSe $1.10bn). We are now modeling FY15 bookings growth of 30% to $6.11bn versus our prior view of 29% to $6.06bn," she added.

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Shares of salesforce.com closed at $52.89 yesterday.