Salesforce, the cloud-based customer relationship management company, recorded more than $5 billion in quarterly revenue for the first time. This contributed to a 13% rally in the American company after the publication of financial statements, reports DailyComm.
In May-July 2020, the company generated $5.15 billion, which is 29% more than a year earlier. Net income jumped from $ 91 million to $ 2.63 billion during that time, thanks to a $2 billion tax break that the cloud provider received as a result of an international corporate structure change that led to a consolidation of intangibles.
Aside from one-off income and expenses, Salesforce posted a so-called adjusted earnings of $1.44 per share in the last quarter. Analysts polled by FactSet expected the company to make such a profit of 67 cents per share on sales of $4.9 billion. The vendor itself predicted an adjusted profit in the range of 66-67 cents and revenues of 4.89-4.9 billion dollars.
During a conference call dedicated to release of quarterly totals, Salesforce CEO Marc Benioff called “bitter joy” the strong financial performance from the hardships and tragedy of the COVID-19 pandemic, as companies are forced to change the way they work and use digital technologies to interact with customers.
“We all want to go back to the way it was, but in reality this will never happen. We are in a new world. We live in a completely digital world with digital work, we live and learn in digital format,” he said.
Salesforce’s cloud-based sales and marketing business generated $1.28 billion in revenue in the second financial quarter, up from $1.13 billion a year earlier.
In the Service Cloud business, revenues increased year over year from $1.09 billion to $1.3 billion. The company earned about $746 million from cloud solutions Marketing and Commerce Cloud, while in the second quarter of the previous fiscal year, revenue here was equal to 912 million.
NIX Solutions adds that the main demand for Salesforce products continues to be in the Americas, which provided 70% of the company’s revenue in May-July 2020. The shares of Europe and the Asia-Pacific region in the vendor’s turnover amounted to 21% and 9%, respectively.