Salesforce shares climbed around 7% in expanded trading on Thursday after the software company reported more than expected quarterly revenue and lifted its forecast for the year.
Here are the key figures for the second quarter of fiscal year 2020:
- Revenue: 66 cents per share, excluding certain items, against 47 cents per share as analysts expected, according to Refinitiv.
- Revenue: $ 4 billion, against $ 3.95 billion as expected by Refinitive.
Revenues increased 22% from the previous year, the company said in a statement. Sales Cloud, the company's largest product, generated $ 1
While Salesforce is still generating organic growth as several large companies move their applications to the cloud, the company has also been in a quandary to move into new areas and open the door for new expansion opportunities. Earlier this month, Salesforce closed the $ 15.3 billion acquisition of Tableau, by far the largest deal ever, and squeezed in data visualization tools.
It followed last year's $ 6.5 billion acquisition of MuleSoft, which put Salesforce into the business of data integration, more of a back-end technology.
Salesforce raised its revenue forecast for the year to between $ 16.75 and $ 16.9 billion from its previous guidance of up to $ 16.25 billion. For the third quarter of the fiscal year, the company said it expects revenues of $ 4.44 billion to $ 4.45 billion, representing 31% year-over-year growth.
In last quarter's revenue, co-CEO Marc Benioff said Salesforce would reach $ 26 billion to $ 28 billion in annual tax revenue 2023. It was a week before the announcement of the Tableau acquisition, snapping up a company that produced around $ 1.3 billion in annual revenue.
Salesforce shares jumped as high as $ 158.50 after the report. The stock rose 0.6% in ordinary trading to close at $ 148.24 and is up just over 1% over the past year.
Executives will discuss the results with analysts at 5 p.m. Eastern time.
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