Shares of Salesforce.com Inc. rose on Wednesday after the cloud-based customer relationship management firm easily exceeded Wall Street estimates and raised its outlook for the year again.
Salesforce CRM,
shares rose 2% after hours, after a 0.5% gain in the regular session to close at $ 260.85.
Salesforce reported second-quarter net tax revenue of $ 535 million, or 56 cents a share, compared to $ 2.663 million or $ 2.85 per share, during the previous year, when the company received a $ 2 billion tax benefit for changes in its international corporation. structure. Last year’s second-quarter earnings report also led stocks to their best one-day gain. Adjusted second-quarter earnings were $ 1.48 per share, compared to $ 1.44 per share for the prior year period.
Revenue rose to $ 6.34 billion, up from $ 5.15 billion in the previous quarter.
Analysts surveyed by FactSet estimated earnings of 92 cents per share on revenue of $ 6.24 million were based on Salesforce’s forecast of 91 cents to 92 cents per share on revenue of $ 6.222 billion to $ 6.23 million. dollars.
“With companies and governments around the world continuing to accelerate their digital transformations, we delivered our fifth phenomenal consecutive quarter,” Marc Benioff, president and CEO of Salesforce, said in a statement. “Our Customer 360 platform is now powered by a herd of unicorns perfectly designed for this fully digital world. Sales, Services, Marketing and Commerce, Platform, Tableau, MuleSoft and now Slack are more than a billion dollar products that offer customers success like no other company. ”
Salesforce expects adjusted third-quarter earnings of 91 cents to 92 cents per share on revenue of $ 6.78 billion to $ 6.79 billion, while analysts had forecast 82 cents a share on revenue of $ 6.666 billion.
For fiscal year 2022, Salesforce expects earnings to adjust revenue from $ 4.36 to $ 4.38 for revenue from $ 26.2 billion to $ 26.3 billion, with analysts expecting $ 3.84 for revenue of $ 26 billion. Earlier, Salesforce had planned an action of $ 3.79 to $ 3.81 for revenue of $ 25.9 billion to $ 26 billion.
The outlook for the full year includes revenue of approximately $ 530 million from the acquisition of Slack Technologies Inc. of $ 27.7 billion, which closed on July 21st.
Operating margins in the second quarter were 5.2% unadjusted and 20.4% on an adjusted basis, compared with 5.9% in the first quarter unadjusted and 20.2% adjusted.
Last quarter, analysts debated whether Salesforce’s operating margins could be better after the company forecast an unadjusted operating margin of approximately 1.4% and an adjusted operating margin of 18% for the year. . This quarter, Salesforce requested unadjusted operating margins of 1.8% and adjusted 18.5% for the year.
In the last twelve months, Salesforce shares have advanced 21%, while the IGV ETF in the iShares expanded software technology sector,
has increased by 37%, the S&P 500 SPX index,
has gained 31%, the composite index Nasdaq COMP
has risen 31%, and the DJIA Dow Jones Industrial Average,
– which added Salesforce as a component this time last year – has advanced 25%.