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Marc Benioff, billionaire and co-founder and CEO of Salesforce.com Inc., pauses during a panel session on the opening day of the World Economic Forum (WEF) in Davos, Switzerland on Tuesday, January 21 2020. World leaders, influential leaders, bankers and policymakers attend the 50th annual meeting of the World Economic Forum in Davos from January 21-24. Photographer: Jason Alden / Bloomberg via Getty Images
Jason Alden | Bloomberg | Getty Images
Salesforce shares rose as much as 3% in extended trading on Wednesday after the enterprise software maker reported second-quarter tax results and guidance that beat analyst estimates.
Here’s how the company did it:
- Earnings: $ 1.48 per share, adjusted, compared to 92 cents per share as expected by analysts, according to Refinitiv.
- Returned: $ 6.34 billion, compared to $ 6.24 billion as predicted by analysts, according to Refinitiv.
Revenue was up 23% year-over-year in the quarter, which ended July 31, the company said in a statement. In the previous quarter, sales increased by 23%.
Salesforce’s Platform & Others unit, which includes MuleSoft integration software and Tableau data analysis software, generated $ 1.88 billion in revenue, up 24%.
The Service Cloud segment recorded revenue of $ 1.60 billion, representing growth of approximately 23%.
Salesforce’s core Sales Cloud product, which reps use to stay on top of business opportunities, generated $ 1.48 billion in revenue, up 15%.
During the quarter, Salesforce completed its $ 27.7 billion acquisition of team communication apps company Slack. Also in the quarter, Salesforce announced plans for tools targeting investment banks through its financial services cloud, and announced that it would release Work.com software for the benefit of employees.
As for the forecast, Salesforce said it expects adjusted earnings per share of 91 to 92 cents in the third quarter on revenue of $ 6.78 billion to $ 6.79 billion. Analysts polled by Refinitiv were looking for 82 cents in adjusted earnings per share and $ 6.66 billion in revenue.
Salesforce has raised its profit and revenue forecast for full year 2022.
It now has adjusted earnings per share of $ 4.36 to $ 4.38 and revenue of $ 26.2 to $ 26.3 billion. The consensus among analysts polled by Refinitiv was $ 3.82 in adjusted earnings per share and $ 26.01 billion in revenue. Revenue includes $ 530 million from Slack, $ 30 million more than Salesforce predicted a quarter earlier. The company forecast its operating margin for the year to be 1.8%, larger than the forecast of 1.4% for the previous quarter.
Despite the after-hours move, Salesforce shares have risen 17% since the start of 2021, while the S&P 500 index has risen nearly 20% during the same time frame.
Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.
This is last minute news. Please check for updates.
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