Stock of Salesforce rallied by 7% on Thursday after the software giant’s quarterly revenue beat analyst estimates. The firm reported revenue of $4 billion for the July quarter against the estimated$3.96 billion. This represents a growth of 22% from a year earlier. Amidst weakening sentiment among buyers of enterprise-technology, Salesforce reported record revenue in the quarter and raised its internal revenue guidance for the full-year.
Revenue is estimated to be around $4.45 billion for the October quarter, again beating analyst estimates of $4.18 billion. Earnings-per-share stood at 66 cents, significantly higher than an estimated 47 cents. Salesforce stock closed at $148.32 surging 7% while the S&P 500 and NASDAQ Composite indices were down by 0.1% and 0.4%, respectively. This is the first earnings report released by Salesforce after it acquired Tableau Software for $15.3 billion. Cloud offerings have been a huge source of revenue for the California based firm. Sales Cloud and Service Cloud are the largest products in the company’s portfolio, and they generated combined revenue of $2.22 billion. Sales Cloud revenue saw an increase of 13% while Service-cloud revenue surged by 22%.
Fueled by large businesses migrating to the cloud, Salesforce has a healthy organic growth. The company is investing a lot of capital to expand to new opportunities. Acquisition of Tableau was Salesforce’s biggest acquisition ever. It paid $15.3 billion to acquire the data-visualization software maker. CFO Mark Hawkins commented that the company earned close to half-a-billion dollars from the acquisition of Tableau and a combined $225 million from the purchase of Salesforce.org and ClickSoftware. The company had bought ClickSoftware for $1.35 billion earlier this month. Co-CEO Marc Benioff had said in the previous quarter’s earnings call that Salesforce was poised to reach about $26 billion to $28 billion in annual revenue by 2023.The stock touched a day high at $158.50 and closed at $148.24 up 0.6%.