Salesforce share price up after raising revenue guidance up to $16.9 billion
The cloud-based software company saw its shares climbed higher in extended trading Thursday following its record second quarter results.
Salesforce shares rose as much 7% in extended trading on Thursday after the company recorded better-than-expected second quarter (Q2) results that saw it raise its full-year revenue guidance.
‘Following an outstanding quarter, we're raising our FY20 revenue guidance to $16.9 billion at the high-end of the range," Salesforce Chairman and co-CEO Marc Benioff said.
‘With our Customer 360 vision, Einstein AI and the millions of Trailblazers innovating on our platform, Salesforce has never been better positioned for the future,’ he added.
Practise trading Salesforce and other US tech stocks with an IG demo account
Salesforce results: key figures
Salesforce recorded $4.0 billion in Q2 revenue, representing an increase of 22% year-over-year and 23% in constant currency.
Subscription and support revenues climbed to $3.75 billion, up 22% year-over-year, while professional services and other revenues hit $252 million, up 14% year-over-year.
‘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,’ Salesforce co-CEO Keith Block said.
‘The trust our customers have in us to drive their digital transformations is reflected in our strong quarterly results across our clouds and regions.’
Earnings per share (EPS) on a diluted basis came in at $0.11, while EPS on a non-diluted basis hit $0.66.
The cloud-based software company generated $436 million in cash from its operations, representing a decrease of 5% year-over-year, with total cash equivalents and marketable securities ending the quarter at $6.04 billion.
Inorganic growth expands Salesforce offering
Salesforce’s Q2 results show that the company is generating strong organic growth, driven by more corporates opting to move their applications to the cloud, but it has also deployed capital effectively to move into new areas via acquisitions.
Earlier this month, Salesforce acquired data visualisation company Tableau in a deal valued at $15.3 billion. The purchase follows its acquisition of MuleSoft for $6.5 billion last year.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
