Salesforce’s Profit Narrowly Beats Analyst Estimates As Costs Rise
Salesforce.com reported a quarterly profit that edged past analysts’ estimates as it continued to invest heavily to fend off competition.
Total operating costs rose 19.7% to $1.84 million in the second quarter ended July 31.
Revenue from Sales Cloud, the company’s flagship product, rose 17.4% to $886.4 billion, while total revenue rose 25.8% to $2.56 billion.
The company’s deferred revenue, a key-metric for subscription-based software businesses, rose 26% to $4.82 billion.
Analysts on average had expected revenue of $4.69 billion, according to financial and data analytics firm FactSet.
Salesforce’s net income fell to $17.7 million, or 2 cents per share, in the latest quarter from $229.6 million, or 33 cents per share, a year earlier.
On an adjusted basis, the company earned 33 cents per share.
Analysts on average had expected a profit of 32 cents and revenue of $2.51 billion, according to Thomson Reuters I/B/E/S.
Shares of the company (CRM) fell 1.5% after the bell on Tuesday.