Salesforce.com Results Beat in Q3; Acquires Slack for $27.7B

By Yasin Ebrahim

Salesforce.com lifted its annual guidance after reported on Tuesday third-quarter results that beat analysts’ forecasts and the cloud company confirmed it would acquire messaging platform Slack for $27.7 billion.

Salesforce.com (NYSE:CRM) fell 4.3%, while Slack Technologies Inc (NYSE:WORK) was down 0.3%. “This is a match made in heaven. Together, Salesforce and Slack will shape the future of enterprise software and transform the way everyone works in the all-digital, work-from-anywhere world. I’m thrilled to welcome Slack to the Salesforce Ohana once the transaction closes,” the company said. Looking ahead to fiscal 2021, the company lifted guidance on EPS to a range of $4.62-to-$4.63, up from $3.72-to-$3.74, previously on revenue of between $21.1B-to-$21.11B, up from prior guidance of $20.7B-to-$20.8B.

Salesforce.com announced earnings per share of $1.74 on revenue of $5.42B. Analysts polled by Investing.com anticipated EPS of $0.747 on revenue of $5.25B.

Subscription and support, which makes up the bulk of growth, saw revenue for the quarter rise 20% to $5.09 billion. Professional services and other revenues for the quarter were $0.33 billion, an increase of 22% year-over-year.

“Our results are being driven by the success of our customers and the relevance of our Customer 360 Platform in this new normal,” the company said.

For the four-quarter, the company sees EPS of between $0.73 and $0.74 on revenue between $5.665B to $5.675B.

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