Salesforce forecasts full-year results above expectations, shares rise

 Salesforce forecasts full-year results above expectations, shares rise

(Reuters) - Salesforce.com Inc beat analysts' estimates for quarterly revenue and profit on Tuesday and forecast full-year results above expectations, as customers looking to rein in costs boosted demand for its Sales Cloud product.

The San Francisco-based company's shares rose 3% in trading after the bell.

Revenue from the company's flagship product, Sales Cloud, rose 11% to $1.1 billion in the first quarter.

The company raised its full-year 2020 adjusted profit forecast to be in the range of $2.88 to $2.90 per share and revenue between $16.10 billion and $16.25 billion. Analysts on average were expecting a profit of $2.66 per share on revenue of $16.12 billion.

Salesforce and other cloud-based service providers are benefiting from a growing trend among companies to shift their operations onto lower cost cloud-based services that also offer more scalability.

Last week, smaller rival Workday Inc reported better-than-expected quarterly profit and revenue, as it enrolled more companies for its cloud-based financial and human resources software.

Salesforce's net income rose to $392 million, or 49 cents per share, in the first quarter ended April 30, from $344 million, or 46 cents per share, a year earlier.

The company's total revenue rose 24% to $3.74 billion from $3.01 billion.

Excluding items, the company earned 93 cents per share, while analysts on average had expected 61 cents.

(Reporting by Sayanti Chakraborty in Bengaluru; Editing by Maju Samuel)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date: Jun 05, 2019 03:05:56 IST