Its second-quarter revenue of $5.1 billion jumped 29% year over year, topping analysts’ consensus estimate by $200 million. The revenue growth is driven by an increase of 29% in subscription and support revenues while professional services and other revenues came in at $0.31 billion. On top, its earnings grew substantially compared to the past year period and topped analysts’ expectations by $2.86 per share. The company forecast third-quarter revenue in the range of $5.24 billion to $5.25 billion, representing a growth of 16% from the past year period. Salesforce stock price jumped 14% in post-market trading on the earnings announcement. The shares of Salesforce grew 32% so far this year, extending the twelve months gain to 32%. JMP analyst Patrick Walravens sees strength in the service cloud and sales morale. “If Salesforce were to trade in line with the peer group, it would imply a share price of $300,” Walravens said. Salesforce expects full-year revenue in the range of $20.7-20.8 billion compared to the previous estimate for $20 billion and analysts’ consensus estimate for $20.06 billion.
