Salesforce just reported non-GAAP earnings of $0.14 cents per share on $1.38 billion in revenue. Net loss was $39 million, down significantly from last quarter's $61 million.

The numbers came in ahead of expectations, but the stock was quickly off 4% on lighter than expected predictions for Q4 and next year's revenue.

Non-GAAP earnings don't include stock-based compensation and certain other expenses. 

Analysts were expecting non-GAAP earnings of $0.13 per share on $1.37 billion in revenue.

Salesforce said it expects revenue of $6.45 to $6.55 billion next year. Analysts had been expecting $6.66 billion.

The company is managing to cut its losses: This quarter, it lost only $39 million. Last quarter, it lost $61 million on $1.32 billion in revenue, and a year ago it lost $124 million on $1.08 billion. The recent quarter ended October 31, 2014, but Salesforce counts it as the third quarter of its 2015 fiscal year. 

Salesforce is the prime example of a subscription-based software company, and some investors have been skeptical that it will be able to reduce sales and marketing expenses enough to deliver consistent profits. 

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