Salesforce Reported Better Than Expected Results

Salesforce is a famous American cloud-based software company based in San Francisco. This week, the company reported fiscal second-quarter earnings that exceeded expectations. Interestingly, the S&P Dow Jones Indices made the decision to replace Exxon Mobil with Salesforce in the 30-stock Dow Jones Industrial Average on August 31.

Let’s have a look at the results. Interestingly, the adjusted earnings were positively influenced by mark-to-market accounting for the company’s investments. Notably, Salesforce saw a $617 million unrealized gain in the fiscal second-quarter through its stake in nCino. As a reminder, a nCino operates cloud-based software for banks. This company went public in July. Importantly, Salesforce also derives revenue from nCino’s use of its services. 

It is worth noting that, overall revenue increased by 29% year over year in the fiscal second quarter. The quarter ended on July 31. In the previous quarter, revenue grew by 30%. 

Salesforce and interesting details

As mentioned above, the San Francisco-based company enjoyed a great quarter. Notably, revenue from the core Sales Cloud, which enables salespeople and managers to keep track of business, reached $1.28 billion. 

Moreover, revenue from the Service Cloud product for customer support reached $1.30 billion. Interestingly, the Service Cloud revenue also slightly exceeded the result from the previous quarter.

Also, the company’s Platform and Other category, came to $1.51 billion. Notably, Platform and Other category include the Tableau data visualization software, the company acquired last year for $14.8 billion $14.9 billion. 

Notably, when it comes to guidance, Salesforce called for 73 cents to 74 cents in adjusted earnings per share on $5.24 billion to $5.25 billion in revenue for the fiscal third quarter. 

It is worth noting that, for the full 2021 fiscal year the company now sees $3.72 to $3.74 in adjusted earnings per share as well as $20.70 billion to $20.80 billion in revenue.