Salesforce Results Fly Past Street View, Outlook Raised Again and Stocks Rise

The shares of Salesforce.com Inc. rose Wednesday after the cloud-based customer relationship management company sailed easily past Wall Street estimates and once again raised its outlook for the year.

Salesforce CRM,
+0.46%
shares were up 2% after hours, following a 0.5% gain in the regular session to close at $260.85.

Salesforce reported net income of $535 million, or 56 cents per share, in the second quarter, compared to $2.63 billion, or $2.85 per share, in the same period a year ago when the company claimed a $2. billion due to changes in its international business activities. structure. Last year’s second-quarter earnings report also propelled the stock to its best-ever one-day gain. Adjusted earnings for the just completed second quarter were $1.48 per share, compared to $1.44 per share for the same period a year ago.

Revenue rose to $6.34 billion, from $5.15 billion in the same quarter a year ago.

Analysts polled by FactSet had estimated earnings at 92 cents per share on revenue of $6.24 billion, based on Salesforce’s forecast of 91 cents to 92 cents per share on revenue of $6.22 billion to $6. 23 billion.

“As companies and governments around the world continue to accelerate their digital transformations, we delivered our fifth phenomenal quarter in a row,” said Marc Benioff, chairman and CEO of Salesforce, in a statement. “Our Customer 360 platform is now powered by a herd of unicorns perfectly designed for this all-digital world. Sales, Service, Marketing & Commerce, Platform, Tableau, MuleSoft and now Slack are all billion-dollar products that deliver customer 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 per share on revenue of $6.66 billion .

For fiscal 2022, Salesforce forecasts adjusted earnings of $4.36 to $4.38 per share on revenues of $26.2 billion to $26.3 billion, while analysts are forecasting $3.84 per share on revenues of $26.2 billion. $26 billion. Earlier, Salesforce had forecast $3.79 to $3.81 per share on revenue of $25.9 billion to $26 billion.

The full year outlook includes approximately $530 million in revenue from the company’s acquisition of Slack Technologies Inc. closed on July 21.

Operating margins for the second quarter were 5.2% on an unadjusted basis and 20.4% on an adjusted basis, compared to 5.9% unadjusted and 20.2% adjusted in the first quarter.

Last quarter, analysts debated whether Salesforce’s operating margins could be better, after the company forecast an unadjusted operating margin of about 1.4% and an adjusted operating margin of 18% for the year. This quarter, Salesforce asked for operating margins of 1.8% unadjusted and 18.5% adjusted for the year.

In the past 12 months, Salesforce shares are up 21%, while the iShares Expanded Tech-Software Sector ETF IGV,
+0.22%
is up 37%, the S&P 500 index SPX,
+0.22%
won 31%, the tech-heavy Nasdaq Composite Index COMP,
+0.15%
is up 31%, and the Dow Jones Industrial Average DJIA,
+0.11%
— which added Salesforce as a component at this time last year — is up 25%.

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