Salesforce reported earnings on Wednesday.
The company blasted Wall Street forecasts for its second-quarter earnings and issued a robust outlook for the final months of the year.
Salesforce said adjusted earnings for the quarter were pegged at $1.44 per share, up 118% from the same period last year, and well ahead of the Street consensus forecast of 67 cents per share. Group revenues also impressed, rising 29% to $5.15 billion and again beating analysts' forecast of a $4.9 billion tally.
Work-from-home increases, which have driven profits for cloud and software focused rivals, should continue to boost near-term revenues, Salesforce said, which are expected to rise some 20% from last year to $20.8 billion.
"While the demand trends were strong in Q2, we remain mindful on how the pandemic may continue to impact our customers and community,' CFO Mark Hawkins told investors on a conference call late Tuesday. "Therefore, our guidance assumes that the revenue attrition remains consistent with Q2's after performance and assumes we deliver modest new business growth during the second half of fiscal 2021."
"We are taking this quarter-by-quarter as the pandemic is not over and we are only halfway through the fiscal year," he added. In that mind, from that perspective we will continue to evolve and re-imagine our business to enhance our relevance and deliver the highest level of customer success and innovation," he continued.
"As we look out over the next 12 to 24 months we realized it is important for us to make a strategic shift in investments today to better position our company for continued growth and customer success and this new all-digital work from anywhere environment," Hawkins said.
Latest Videos From TheStreet and Jim Cramer:
- Coronavirus Update: Salesforce Beats Earnings Expectations
- McDonald’s Looking Into More Cover-Ups Under Former CEO’s Watch
- Stocks Muted, With Tech Leading Wednesday
- 'Unhinged' Signals Worst Is Over for Struggling Movie Theaters
- Wedbush's $3,500 Bull Case for Tesla: Is It Credible?
- Which Biotech Companies Are Producing a COVID-19 Vaccine?
- Hot Commodity in the NBA Bubble? Barbers