Salesforce Stock Pops on Better-than-expected Earnings and Guidance

Salesforce shares rose as much as 3% in extended trading on Wednesday after the enterprise software maker reported fiscal second-quarter earnings and forward guidance that exceeded analysts’ estimates.

Here’s how the company did:

Earnings: $1.48 per share, adjusted, vs. 92 cents per share expected by analysts, according to Refinitiv
Revenue: $6.34 billion, vs. $6.24 billion expected by analysts, according to Refinitiv
Revenue increased 23% year over year in the quarter, which ended July 31, the company said in a statement. In the prior quarter revenue grew 23%.

Salesforce’s Platform and Other unit, which includes the MuleSoft integration software and Tableau data-analytics software, delivered $1.88 billion in revenue, which was up 24%.

The Service Cloud segment posted $1.60 billion in revenue, representing about 23% growth.

Salesforce’s core Sales Cloud product, which salespeople use to stay on top of business opportunities, had $1.48 billion in revenue, up 15%.

Salesforce has reopened about half of its offices so far after closing them last year with the onset of the coronavirus pandemic.

“I don’t think the delta variant will be material to our business,” CEO Marc Benioff said during a conference call with analysts. “If anything, it only accelerates it.”