Salesforce increases its revenue forecast for the full year



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Salesforce.com
Inc.

CRM 0.58%

He raised his revenue outlook for the full year after posting record results in the last quarter, a positive sign for spending on enterprise technology, some companies have launched warnings about customer sentiment in recent weeks.

The enterprise software provider said Thursday its revenue grew 22 percent to $ 4 billion for the quarter ended July 31, exceeding the consensus forecast of $ 3.96 billion and internal forecasts. of the society.

Salesforce's profit fell 70% to $ 91 million, or 11 cents per share, although the company said it expected to record a loss. The company recorded a $ 166 million charge related to the purchase of Salesforce.org for $ 300 million.

Excluding stock-based compensation and other items, earnings were 66 cents per share, higher than the 47 cents expected by analysts surveyed by FactSet.

For the current year, the San Francisco-based company has raised its revenue forecast between $ 16.75 and $ 16.9 billion, up from $ 16.1 to $ 16.25 billion. The company also reduced its earnings outlook by digesting a series of acquisitions. Salesforce announced Thursday that it was expecting earnings per share of 28 to 30 cents, down from earlier forecasts of 78 to 80 cents.

Equities rose about 7% after trading hours.

Salesforce is the fifth largest enterprise application software company in the world in terms of revenue, with 5% of the market, according to

Gartner
Inc.

The research firm expects enterprise application software spending to rise 8.8 percent this year to $ 210.69 billion, a slower pace than the 13 percent growth rate last year .

Salesforce has made several acquisitions in recent years to provide its customers with more tools and services. The latest was announced earlier this month when the company announced a $ 1.35 billion purchase and purchase agreement for the acquisition of ClickSoftware Technologies Ltd. It should be concluded during the quarter.

In June, Salesforce agreed to purchase the Tableau Software Inc. data analytics platform for a stock of more than $ 15 billion, its largest acquisition to date. Last year, she purchased the MuleSoft Inc. web service under a $ 6.5 billion contract. In 2016, the company purchased the Demandware Inc. e-commerce platform for $ 2.8 billion.

Write to Sarah E. Needleman at [email protected]

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