Cloud-based software company Salesforce.com, Inc. (CRM) has reported stronger-than-expected results for the second quarter ended July 31, 2021, on the back of robust growth in revenues.
Following the news, shares of the company appreciated 1.8% in Wednesday’s extended trade to close at $265.50.
Quarterly revenues of $6.34 billion jumped 23% year-over-year from $5.15 billion, topping the Street’s estimates of $6.24 billion. Subscription and support revenues grew 22% year-over-year to $5.91 billion at the end of the quarter and accounted for roughly 93.2% of the total revenues.
The company reported quarterly earnings per share (EPS) of $1.48, up 2.8% from the same quarter last year. The figure further topped analysts’ estimates of $0.92 per share.
In other metrics, the company’s remaining performance obligation and current remaining performance obligation stood at $36.2 billion (up 18% year-over-year) and $18.7 billion (up 23% year-over-year), respectively.
The company anticipates revenues for the third quarter to be in the range of $6.78 billion to $6.79 billion. Further, it expects to post EPS of $0.91 to $0.92 in the same period.
For Fiscal Year 2022, the company anticipates revenues to be in the range of $26.2 billion to $26.3 billion against the consensus estimates of $26.01 billion. It expects EPS in the range of $4.36 to $4.38.
The CFO of Salesforce, Amy Weaver, said, “We exceeded our financial expectations in the quarter, achieving record levels of new business, and saw strong demand across our portfolio. And we are excited to build on Slack’s momentum with the power of our two companies now together.” (See Salesforce stock chart on TipRanks)
Two days ago, Wedbush analyst Daniel Ives reiterated a Buy rating on the stock with a price target of $300. The analyst’s price target implies upside potential of 15% from current levels.
Consensus among analysts is a Strong Buy based on 23 Buys and 5 Holds. The average Salesforce price target of $281.7 implies upside potential of 8% from current levels.
Salesforce scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock is likely to outperform market expectations. Shares have declined 4.2% over the past year.