Salesforce Reveals Q2 Results and Annual Revenue Forecast!
Salesforce.com Inc. topped analysts’ quarterly revenue and profit estimates, reported that many corporate customers have responded to the pandemic and economic crisis by upgrading critical technology systems to accelerate their businesses.
In the second quarter, which ended on July 31, 2020, revenue increased by 29% to $5.15 billion. On average, analysts projected $4.9 billion. Profit excluding certain items was $1.44 per share, excluding an additional 58-cent gain from investments, that number would have been 86 cents per share. Salesforce expects its Annual Revenue between $20.7 Billion and $20.8 Billion.
In order to thrive during the Covid-19 outbreak, the company had to get closer to customers and “reimagine its relevance.” In the process, Salesforce launched the work.com and Salesforce Anywhere products, to help clients safely reopen offices and work remotely. Work.com is also used by governments and schools to do coronavirus contact tracing and manage employee shifts.
Companies could not turn down major technology upgrades as they had to make decisions that would take weeks or months, in days.Salesforce shares dropped as high as $247.80 in extended trading after closing at $216.05 in New York. However, the stock has increased to 33% this year.
Revenue from Sales Cloud, the company’s flagship product, increased 13% to $1.28 billion in the second quarter. The company leads the market for sales-tracking software, but growth rates have slowed over time. Service Cloud sales climbed 20% to $1.3 billion in the recent period.
Salesforce offers these tools so companies can communicate with field employees and customers. Revenue in Salesforce’s “Platform and Other” business category, which includes several of its recent acquisitions, gained 66% to $1.5 billion during the second quarter. And, Tableau contributed to 41 percentage points of the total 66% growth figure.
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