shares jumped 6% in extended trading Wednesday after the cloud software company announced quarterly results and guidance that surpassed Wall Street's expectations.
Here's how the company did:
Salesforce's revenue in the fiscal second quarter increased 11% from a year earlier, according to a . Net income rose to $1.27 billion, or $1.28 per share, from $68 million, or 7 cents per share, in the year-ago quarter.
An uncertain economy continues to pressure Salesforce's growth, finance chief Amy Weaver said on a conference call with analysts. The company encountered softness in the U.S. during the quarter, and in several industries like technology, retail and consumer goods, she said.
"We are still seeing elongated sales cycles, additional deal approval layers, and deal compression in our subscription and support and professional services businesses," Weaver said. Clients have been more careful since July 2022, she said.
For the current quarter, Salesforce called for $2.05 to $2.06 in adjusted earnings per share on $8.7 billion to $8.72 billion in revenue. Analysts polled by Refinitiv had expected adjusted earnings of $1.83 per share and $8.66 billion in sales.
The company delivered growth in all five of its product categories, and CEO sees expansion ahead through artificial intelligence.
"We're leading our customers into the new AI era," he was quoted as saying in a statement.
Salesforce lifted its full-year forecast. It now sees $8.04 to $8.06 in adjusted earnings per share on $34.7 billion to $34.8 billion in revenue, implying 11% revenue growth. Analysts surveyed by Refinitiv had been looking for $7.45 per share in profit and $34.65 billion in revenue. , the company issued guidance of $7.41 to $7.43 in adjusted earnings per share and $34.5 billion to $34.7 billion in revenue, which would have meant 10% revenue growth.
During the quarter Salesforce AI enhancements to its Sales Cloud and Service Cloud applications were available for $50 per person per month on top of existing costs. And it an AI Cloud that will encompass tools for marketing and data analysis.
Neither AI nor a will have a major impact on the full-year guidance, Weaver said.
Salesforce shares have climbed 62% so far this year, while the S&P 500 index has gained about 18% over the same stretch.
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