Salesforce earnings top forecasts in 2nd quarter

Salesforce on Wednesday reported strong fiscal second-quarter earnings that beat Wall Street expectations.

The San Francisco customer-management software company posted profit of $299 million. It reported adjusted earnings of 71 cents per share, far exceeding analysts’ forecast of 47 cents.

Revenue was $3.28 billion in the period, also exceeding forecasts.

For the current quarter ending in November, Salesforce expects its earnings to be 49 to 50 cents per share on revenue of $3.36 billion to $3.37 billion. Analysts had projected $3.35 billion in the third quarter. Salesforce also raised its annual revenue forecast to as much as $13.18 billion, with full-year profit of about $2.50 per share.

After closing at $154.80, Salesforce shares lost $5.95 in after-hours trading. The stock is up 51 percent this year.

Salesforce has broadened its focus and sought larger corporate clients while chasing a sales goal of $23 billion by fiscal 2022. It recently bought Datorama and said it will spend billions of dollars to expand internationally.

Salesforce’s growth prospects “continue to defy logic,” BTIG analysts including Joel Fishbein wrote in a note ahead of the earnings release. The company’s acquisition of MuleSoft and push into industryspecific segments has created “reacceleration in core offerings.”

The results were the first for the company with co-CEOs, after Keith Block was promoted earlier this month to join co-founder Marc Benioff in the position. Block will continue to focus on Salesforce’s daily operations and sales. Benioff, who retains his role as board chairman, will focus on the company’s vision and culture.