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Here's What Key Metrics Tell Us About Salesforce.com (CRM) Q4 Earnings

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Salesforce.com (CRM - Free Report) reported $9.29 billion in revenue for the quarter ended January 2024, representing a year-over-year increase of 10.8%. EPS of $2.29 for the same period compares to $1.68 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $9.21 billion, representing a surprise of +0.81%. The company delivered an EPS surprise of +1.33%, with the consensus EPS estimate being $2.26.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Salesforce.com performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Remaining performance obligation (RPO) - Current: $27.6 billion compared to the $27.12 billion average estimate based on eight analysts.
  • Remaining performance obligation (RPO) - Noncurrent: $29.3 billion versus $27.27 billion estimated by five analysts on average.
  • Remaining performance obligation (RPO) - Total: $56.9 billion versus the five-analyst average estimate of $54.4 billion.
  • Full time equivalent headcount: 72,682 versus 72,839 estimated by three analysts on average.
  • Geographic Revenue- Americas: $6.18 billion compared to the $6.71 billion average estimate based on two analysts. The reported number represents a change of +9.2% year over year.
  • Geographic Revenue- Asia Pacific: $906 million versus $923.62 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +14.4% change.
  • Geographic Revenue- Europe: $2.21 billion versus the two-analyst average estimate of $1.58 billion. The reported number represents a year-over-year change of +14%.
  • Revenue- Professional services and other: $539 million compared to the $626.29 million average estimate based on 12 analysts. The reported number represents a change of -9.4% year over year.
  • Revenue- Subscription and support: $8.75 billion versus $8.59 billion estimated by 12 analysts on average. Compared to the year-ago quarter, this number represents a +12.3% change.
  • Revenue- Subscription and support- Marketing and Commerce: $1.27 billion versus the four-analyst average estimate of $1.27 billion. The reported number represents a year-over-year change of +8.2%.
  • Revenue- Subscription and support- Service: $2.16 billion versus the four-analyst average estimate of $2.12 billion. The reported number represents a year-over-year change of +12.2%.
  • Revenue- Subscription and support- Platform and Other: $1.72 billion versus the four-analyst average estimate of $1.74 billion. The reported number represents a year-over-year change of +10.5%.
View all Key Company Metrics for Salesforce.com here>>>

Shares of Salesforce.com have returned +4.1% over the past month versus the Zacks S&P 500 composite's +4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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