Salesforce Q2 tops estimates on strong sales across clouds

Salesforce reported strong second quarter financial results on Thursday that topped estimates and raised its fiscal 2020 guidance. The CRM giant delivered non-GAAP earnings of 66 cents per share on revenue of $4 billion, up 22% year over year.

Wall Street was looking for earnings of 47 cents per share with revenue of $3.95 billion. Salesforce stock was up nearly 7% in late trading.

Elsewhere on the balance sheet, the company’s Q2 net income was $91 million, or 11 cents per share. Subscription and support revenues increased 22% annually to $3.75 billion. Professional services and other revenues totaled $252 million, up 14% year over year.

Breaking subscription revenues down by segment, Sales Cloud revenue was $1.13 billion, Service Cloud revenue was $1.09 billion, Marketing and Commerce Cloud revenue was $616 million, and Salesforce platform and other revenue was $912 million.

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As for the outlook, analysts are looking for earnings of 61 cents a share on revenue of $4.25 billion for the current quarter. Salesforce responded with a revenue range of $4.44 billion to $4.45 billion and earnings between 65 and 66 cents per share.

For the full-year, Salesforce expects earnings between $2.82 and $2.84 per share on revenue between $16.75 billion and $16.9 billion, representing growth of 31% year over year.

Article source: https://www.zdnet.com/article/salesforce-q2-tops-estimates-on-strong-sales-across-clouds/#ftag=RSSbaffb68