Shares of Salesforce (NYSE:CRM) are up as much as 3% in premarket trading after the cloud computing giant reported second quarter earnings and forward guidance that exceeded Wall Street estimates.
Salesforce’s earnings per share (EPS) came in at $1.48 U.S. per share compared to $0.92 U.S. per share that had been expected by analysts, according to Refinitiv data. The company’s revenue totaled $6.34 billion U.S. versus $6.24 billion U.S. expected by analysts.
Salesforce’s revenue increased 23% year-over-year in the second quarter. Salesforce’s Platform and Other unit, which includes the MuleSoft integration software and Tableau data-analytics software, delivered $1.88 billion U.S. in revenue, which was up 24%.
Salesforce’s core Sales Cloud product, which salespeople use to stay on top of business opportunities, had $1.48 billion U.S. in revenue, up 15%.
In the quarter, Salesforce completed its $27.7 billion U.S. acquisition of team communication app Slack. Also in the quarter, Salesforce announced plans for tools targeting investment banks through its Financial Services Cloud, and it said it would release Work.com software for employee wellness.
With respect to guidance, Salesforce said it now sees $0.91 U.S. to $0.92 U.S. in adjusted third-quarter earnings per share on $6.78 billion U.S. to $6.79 billion U.S. in revenue. Analysts had been looking for $0.82 U.S. in adjusted earnings per share and $6.66 billion U.S. in revenue.
The company projects that its operating margin for the fiscal year would be 1.8%, wider than the 1.4% guidance from the previous quarter.