Salesforce Gatherings of Actions as Best Profit Estimates

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Shares are gaining ground in response to better-than-expected financial results for the company’s fiscal second quarter, ended July 31.

At the end of the session, Salesforce stock (ticker: CRM) rose 1.9% to $ 265.75.

For the quarter, Salesforce reported revenue of $ 6.34 billion, up 23% from a year ago, or 21% adjusted for currency. The cloud-based business software provider had forecast revenue of $ 6.22 billion to $ 6.23 billion, while Street forecast $ 6.25 billion. This was the company’s first quarter with sales of more than $ 6 billion.

Non-GAAP earnings were $ 1.48 per share, which includes a mark-to-market gain of 43 cents on the company’s strategic investment portfolio. Management’s forecast was 91 to 92 cents a share, while the Street had projected 92 cents. After adjusting for the mark-to-market gain, the result involves an increase in profits of more than 10 cents per share.

According to generally accepted accounting principles, profits were 56 cents per share.

The remaining performance bonds, a measure of work contracted but not yet delivered, totaled $ 36.2 billion at the end of the quarter, up 18% from a year earlier. Current residual performance bonds, covering work due over the next 12 months, stand at $ 18.7 billion, up 23%.

“As businesses and governments around the world continue to accelerate their digital transformations, we achieved our phenomenal fifth quarter in a row,” CEO Marc Benioff said in a statement. “Salesforce has never experienced better execution or greater momentum. “

For the October quarter, Salesforce is forecasting revenue of $ 6.78 billion to $ 6.79 billion, with non-GAAP earnings of 91 to 92 cents per share. The consensus call was for $ 6.67 billion in revenue and 81 cents in earnings per share.

For the full year ending January 2022, Salesforce now reports revenues of between $ 26.2 billion and $ 26.3 billion, with non-GAAP earnings of $ 4.36 to $ 4.38 per share, at- above its previous forecast of revenue of $ 25.9 billion to $ 26 billion and earnings of $ 3.79 to $ 3.81 per share. The Street expected $ 26 billion and $ 3.82 per share.

In an interview with, Bret Taylor, president and COO of Salesforce, said the strong growth during the quarter “reflects how relevant our products are right now, with customer demand for what we do… digital transformation begins and ends with your customers. “He says customers are accepting that the pandemic is not going to go away and are adjusting their systems accordingly.

“We are seeing strong growth in all areas, for sales, service, marketing and commerce software. ” he said.

Taylor said of the roughly $ 300 million increase in revenue forecast for the full year, about $ 40 million reflects the Slack acquisition, while the rest will come from the company’s organic growth. . Regarding the sharp increase in earnings prospects, he said the company “is performing better than ever.” He says the company has “outperformed in terms of revenue,” as staff travel less and management maintains discipline over costs.

Meanwhile, Taylor says the company’s annual Dreamforce conference, which in the past has drawn as many as 200,000 people to San Francisco, will be mostly virtual when it takes place next month. Hundreds of people will be on hand for the main presentations, but most will participate online.

Write to Eric J. Savitz at [email protected]