CFO Mark Hawkins noted he company “expanded our year-over-year non-GAAP operating margin for the fifth consecutive quarter”, and “delivered more than $1 billion in operating cash flow in the first half of the year, an increase of 44% over last year”.
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Salesforce posted flat earnings at 0 cents per share on a GAAP basis compared to last year’s loss of 10 cents per share. The Thomson Reuters estimates for the third quarter called for EPS of $0.18 and $1.6 billion in revenue.
Another strong fiscal quarter, with solid growth across its major cloud services and development platform, gave Salesforce CEO Marc Benioff a chance to praise his company’s joint efforts with Microsoft, mock some other rivals, and promote the upcoming Dreamforce convention.
The customer-management software developer posted revenue of $1.63 billion in the period, also beating Street forecasts.
Salesforce now projects $6.6 billion to $6.62 billion in revenue this year – a run rate upgraded by $75 million.
Deferred Revenue: Deferred revenue on the balance sheet as of July 31, 2015 was $3.03 billion, an increase of 29% year-over-year, and 33% in constant currency.
Shares of the cloud computing company jumped nearly four during the extended trading hours following the company’s announcement of a raised revenue forecast for the ongoing quarter which also surpassed analysts’ expectations.
“Salesforce has now blown past the $6.5 billion annual revenue run rate faster than any other enterprise software company, and we are once again raising our fiscal year 2016 revenue guidance to $6.625 billion at the high end of our range”, Benioff wrote in prepared remarks.
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The Dow Jones Industrial Average dropped 358.04 points, or 2.1%, to 16,990.69, its steepest percentage decline since Feb 3, 2014. Thirty-eight analysts had a consensus revenue estimate of $1.60 billion for the second quarter. That’s up 24% from a year ago.
