FILE PHOTO: the logo of The company Salesforce.com it is displayed in the Salesforce Tower in New York City, united states of america, on March 7, 2019. REUTERS/Brendan McDermid/File Photo
(Ap) – Salesforce.com Inc., and CRM.The forecast for third-quarter revenue above Wall Street estimates on Thursday, encouraged by more and more companies are opting for cloud-based services, sending its shares up more than 7% in extended trading.
The company said it expects revenue of $4.44 billion to $4.45 billion for the current quarter, topping analysts ‘ expectations of $4.25 billion, according to IBES data, Refinitiv.
It has spent billions of dollars on acquisitions in the last couple of years, and the addition of companies such as a Tablet, and MuleSoft, and if it is trying to get their share of the market, in the face of strong competition from Microsoft Corp’s (MSFT.(O) and Oracle Corp (ORCL.(N).
The proceeds from the Sale of the Cloud, the flagship product for a customer relationship management system, which increased by 12.5% to $1.13 billion, accounting for about one-third of its revenue.
Total revenue increased 22% to $4 billion in the second quarter, which ended July 31, compared with analysts ‘ estimates of $3.95 billion, according to IBES data, Refinitiv.
Net income fell to $91 million, or 11 cents a share, up from $299 million, or 39 cents a share, a year earlier.
With the exception of the items, it earned 66 cents per share, well above analysts ‘ expectations of 47 cents per share.
The company, however, forecast a third-quarter loss of 20 cents to 21 cents per share.
Reporting by Neha Malara in Bengaluru; Editing by Anil D’silva