Salesforce crushed it, again.
Like Workday (WDAY) - Get Workday, Inc. (WDAY) Report , ServiceNow (NOW) - Get ServiceNow, Inc. Report and a slew of other cloud software firms, Salesforce.com (CRM) - Get salesforce.com, inc. Report has made a lot of headway growing its revenue from its top enterprise clients.
The company's strong April quarter earnings report, released after Tuesday's close, has much to do with reaping the fruits of this growth strategy. Salesforce beat estimates on the back of 25% revenue growth, issued solid sales guidance and disclosed the total value of future revenue it has under contract rose 36% to $20.4 billion.
"Salesforce remains a Top Pick as enterprises continue investing in intelligent applications, specifically systems of engagement, where CRM remains a standout leader," said Credit Suisse analyst Brad Zelnick.
Most of this growth didn't come from Salesforce's age-old Sales Cloud platform, which is widely used in enterprise sales departments. Instead, it came from offerings in fields such as customer support, e-commerce and marketing software, as well as from its cloud app platforms for enterprise developers. Going forward, the company's $6.5 billion purchase of app integration software firm MuleSoft, which closed in early May, should act as another growth engine.
Salesforce's shares rose almost 5% in after-hours trading on Tuesday, making new highs, and were up 6% in pre-market trading on Wednesday. They're now up about 30% in 2018.