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Salesforce earnings top estimates, stock jumps after hours

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Yahoo Finance's Jared Blikre joins the Live show to break down Salesforce's Q1 revenue beat.

Video Transcript

SEANA SMITH: All right, we need to get to some breaking news. Salesforce is out with its first quarter earnings report. Jared Blikre has that for us. Jared.

JARED BLIKRE: That's right. And let's look at the breakdown here. Revenue came in at $7.41 billion. That's up 24% year over year. And the estimate was for a little bit lower, $7.379 billion. Also taking a look at EPS here, for the quarter, that came in-- adjusted EPS came in at $0.98 and the Street was looking for something a little bit lower, $0.95, so another beat there.

But the key metric for the company is a change-- it's actually the current remaining performance obligation. That came in at $21.5 billion, just a little bit light of the Street estimate. Also, the remaining performance obligations are $42 billion for the quarter. The estimate was for what we're going to call this in line here.

Now, breaking it down by category, sales were $1.63 billion. Estimate was for just a little bit lower. Service revenue, $1.76 billion, a little light there. Platform and other revenue, $1.42 billion, small beat. And marketing and commerce-- e-commerce revenue, $1.09 billion, small there-- small builder-- small beat there, excuse me.

And we do have some forecasts here. So for the full year, they're looking for full year adjusted EPS of $4.74 to $4.76. They were seeing $4.62 to $4.64, so they raised their guidance there. They're seeing full year revenue of $31.7 billion to $31.88 billion. But they previously saw that a little bit higher, so kind of a yin and a yang situation there.

And I do have a quote from the CEO, Marc Benioff. There's no greater measure of our resilience and the momentum in our business than the $42 billion we have in remaining performance obligation. This represents all future revenue under contract. And while delivering incredible growth at scale, we are committed to consistent margin expansion and to cash flow growth as part of our long-term plan to drive both top and bottom line performance.

I do have one more key stat here. Adjusted operating margin, 17.6%, and the estimate was for-- well, it was completely in line. And that is up about 20.2% year over year. So you can see the stock fluctuating in afterhours trading, but it is now up over 5%. It had dipped into the red after those headline numbers dropped. Guys.