Salesforce released the earnings results from its second fiscal quarter after closing bell tonight, posting adjusted earnings of 19 cents per share on $1.63 billion in revenue, a 24% year over year increase. Analysts had been expecting earnings of 18 cents per share and $1.6 billion in revenue. In the same quarter last year, the cloud service provider reported earnings of 13 cents per share and $1.32 billion in revenue.
Salesforce’s net losses narrow
Salesforce posted flat earnings at 0 cents per share on a GAAP basis compared to last year’s loss of 10 cents per share.
The company saw deferred revenue of $3.03 billion, a 29% year over year increase or 33% in constant currency. Unbilled deferred revenue rose 24% to $6.2 billion. Operating cash flow rose 24% to $304 million. Subscription and support revenues rose 23% year over year to $1.52 billion. Professional services and other revenues rose 32% to $113 million.
“Salesforce has now blown past the $6.5 billion annual revenue run rate faster than any other enterprise software company, and we are once again raising our fiscal year 2016 revenue guidance to $6.625 billion at the high end of our range,” said Salesforce Chairman and CEO Marc Benioff in a statement. “That puts us on pace to reach a $7 billion run rate later this year, and our goal is to be the fastest to reach $10 billion in annual revenue.”
Salesforce provides guidance
Salesforce management guided for revenue of between $1.69 billion and $1.7 billion for the third fiscal quarter. That represents a 22% to 23% increase from last year. They expect GAAP losses of 2 cents to 1 cent per share and non-GAAP earnings of between 18 cents and 19 cents per share.
For the full year, they raised revenue guidance to a range of $6.6 billion to $6.625 billion, representing about a 23% increase year over year. Salesforce projects GAAP losses of 17 cents to 15 cents per share for the full year and non-GAAP earnings of between 70 cents and 72 cents per share.
As of this writing, shares of Salesforce were up 2.85% at $69.75 per share in after-hours trades.