- Salesforce beat estimates on revenue for its fiscal first quarter, and its second-quarter revenue guidance also exceeded estimates.
- The company got off to a slow start in the quarter, according to one analyst note.
Salesforce stock rose 4 percent on Tuesday after the company delivered better-than-expected results for the first quarter of its 2019 fiscal year.
- Earnings: Excluding certain items, 74 cents per share.
- Revenue: $3.01 billion vs. $2.95 billion as expected by analysts, according to Thomson Reuters.
In terms of guidance, Salesforce said in a statement that it predicts in the fiscal second quarter it will come up with 46-47 cents in earnings per share, excluding certain items, on $3.22-3.23 billion in revenue. Analysts were expecting Salesforce to forecast $3.11 billion in revenue, according to Thomson Reuters.
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Across the board, the company's revenue rose 25 percent year over year. Salesforce gets almost all of its revenue from subscription and support fees, and in that category revenue of $2.81 billion was up 27 percent, coming in above the FactSet analyst consensus of $2.73 billion.
Sales Cloud for customer relationship management is Salesforce's biggest product, but Service Cloud saw greater year-over-year growth -- 29.3 percent -- in the quarter. The company's Einstein artificial intelligence technology is also getting more use, with 2 billion predictions happening every day.
Three months ago Salesforce raised its guidance more than ever before. Since then the company announced its $6.5 billion acquisition of MuleSoft. It also announced the launch of Salesforce Essentials for small businesses.
Mizuho analysts Abhey Lamba and Parthiv Varadarajan wrote in a note on Tuesday that they were hearing of "consistent deal flow following a very strong" fiscal fourth quarter, but Evercore ISI analysts led by Kirk Materne said in a note last Thursday that conversations with partners suggested "the year got off to a slower start in certain segments."
On a call with analysts, chief financial officer Mark Hawkins said MuleSoft will deliver $315 million in additional revenue in the fiscal year. "We're pleased with this, especially post-close," Hawkins said.
Salesforce raised its full 2019 fiscal year guidance by $47.5 million, pegging it at $13.08-13.13 billion.
Salesforce shares are up 24 percent since the beginning of the year.
Programming Note: For more on Salesforce.com, watch "Mad Money" host Jim Cramer's interview with Chairman and CEO Marc Benioff tonight at 6 p.m. Eastern time.
Correction: A previous version of this story compared Salesforce's EPS number with earnings estimates from Thomson Reuters. The numbers are not comparable.