Salesforce stock surges as results, outlook top Street estimates

Salesforce stock surges as results, outlook top Street estimates

Full-year revenue outlook raised following acquisitions Inc. shares rallied in the extended session Thursday after the customer-relationship management software company’s quarterly results topped Wall Street estimates and its recent acquisition of Tableau Software Inc. boosted its revenue outlook.

Salesforce CRM, +0.58% shares surged 7% after hours, following a 0.6% rise in the regular session to close at $148.32. In comparison, the S&P 500 index SPX, -0.05% slipped less than 0.1%, the Nasdaq Composite COMP, -0.36% declined 0.4%, and the iShares Expanded Tech-Software Sector ETF IGV, -0.21% declined 0.1%.

“With our organic growth and our acquisitions of Tableau,, and Click Software we’re raising our fiscal-year ’20 revenue guidance to $16.9 billion, at the high end of our range, representing about 27% growth year-over-year,” said Marc Benioff, Salesforce’s chairman & co-chief executive, on a conference call.

Back in June, Tableau Software Inc. agreed to be acquired by Salesforce for $15.7 billion. Less than a week after the Tableau deal closed on Aug. 1, Salesforce said it was acquiring ClickSoftware for $1.35 billion. In April, the company acquired

Salesforce said it expects revenue of $4.44 billion to $4.45 billion for the third quarter, and a range of $16.75 billion to $16.9 billion for the year. Analysts had forecast revenue of $4.18 billion for the third quarter, and $16.43 billion for the year.

In what Benioff called an “outstanding quarter,” the company reported second-quarter net income of $91 million, or 11 cents a share, compared with $299 million, or 39 cents a share, in the year-ago period. Adjusted earnings were 66 cents a share.

Revenue rose to a few million dollars shy of $4 billion from $3.28 billion in the year-ago quarter.

Analysts surveyed by FactSet had forecast earnings of 47 cents a share on revenue of $3.96 billion.

“An enormous wave of digital transformation is sweeping across every industry, and major brands, like FedEx, AXA and Unicredit, turned to Salesforce in the quarter to propel their growth,” said Keith Block, Salesforce’s co-CEO, in a statement. “The trust our customers have in us to drive their digital transformations is reflected in our strong quarterly results across our clouds and regions.”

error: Content is protected !!