Salesforce rallied as much as 29% on Wednesday after reporting a better-than-expected quarterly performance and raising its full-year sales forecast.
The software giant beat estimates for second-quarter revenue and profits as corporate clients rushed to upgrade technology during the work-from-home shift. Subscription and support revenue surged 29% year-over-year, to $4.84 billion, signaling continued demand for its business systems even as some states reopen and office activity slowly resumes.
Here are the key numbers:
Revenue: $5.15 billion, versus the $4.9 billion estimate from economists surveyed by Bloomberg
Earnings per share: $1.44 adjusted, versus the $0.67 estimate
Full-year revenue: between $20.7 billion and $20.8 billion, versus the $20.1 billion estimate
Full-year adjusted EPS: between $3.72 and $3.74, versus the $2.96 estimate
"It's humbling to have had one of the best quarters in Salesforce's history against the backdrop of multiple crises seriously affecting our communities around the world," CEO Marc Benioff said in the report.
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Salesforce's morning surge led the S&P 500 and pushed the benchmark index slightly higher to a record.
The guidance boost followed the company's decision in May to cut forecasts because of slowed client spending. Benioff touted Salesforce's new Work.com product — made to aid customers with remote work and reopening efforts — as an "incredible victory" and a driver of the company's more optimistic outlook.
Bank of America raised its price target on Salesforce shares to $280 from $235 on Wednesday, deeming the performance "stupendous" and reiterating its "buy" rating for the company. Management's lack of acquisition plans and healthy organic growth should serve as a tailwind for quick expansion, the team led by Kash Rangan said.
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