reported second-quarter net profit of $ 2.63 billion, or $ 2.85 per share, on revenue of $ 5.15 billion, up from $ 4 billion in the last year’s quarter . Adjusted profit, which excluded a $ 2 billion tax benefit stemming from changes in the international structure of Salesforce’s business, was $ 1.44 per share, down from 66 cents per share a year ago.
During the conference call, Chief Executive Officer Marc Benioff said it was “humiliating” and “bittersweet” that the company produced strong results amid the hardships and tragedies created by the COVID-19 pandemic, because businesses need to adapt and digitally connect with their customers. One example mentioned was facilitating the logistics of curbside pick-ups, which most retailers did not offer prior to the pandemic.
“We all want to go back to where we are now, but the reality is that will never happen,” CEO Marc Benioff said on the conference call. “We are in a new world. We are in a fully digital world with digital work, we live digitally, we educate digitally. “
This shift to a digital reality was shown in advice from Salesforce as the company increased its annual revenue outlook for the year. On the revenue side, the company is looking at a range of $ 20.7 billion to $ 20.8 billion, after previously forecasting revenue of $ 20 billion. For annual adjusted earnings, Salesforce expects $ 3.72 to $ 3.74 per share, up from a previous range of $ 2.93 to $ 2.95 per share. Analysts expect earnings of $ 2.97 a share on revenue of $ 20.01 billion.
For the third quarter, Salesforce expects adjusted earnings of 73 cents to 74 cents per share on revenue of $ 5.24 billion to $ 5.25 billion, while analysts had forecast profit adjusted by 76 cents per share on sales of $ 5.02 billion.
Salesforce shares rose 3.6% on Tuesday to close at a record high of $ 216.05 following an announcement from S&P Dow Jones Indices that the stock would replace Exxon Mobil Corp. XOM,
on the Dow DJIA,
at the end of the month. It is the first pure cloud software company to be included in the blue chip index.
Salesforce shares rose more than 13% in after-hours trading after the results were released, pushing more records. As of Tuesday’s close, the stock was up 33% for the year, while First Trust Cloud Computing ETF SKYY,
is up 31%, the S&P 500 SPX index,
is up 6.6%, and the highly technological Nasdaq composite index,
is up 28%.
Salesforce also gained attention recently when the company revealed that it had unloaded its 2.8 million share stake in Zoom Video Communications Inc. ZM,
during the second quarter, when Zoom’s shares were valued between $ 137 and $ 253.54, or up 101% to 273% for the year.