Salesforce.com Inc.’s share price up, posts soaring sales, raises guidance

Salesforce.com Inc., the largest customer-management software maker, posted quarterly earnings today, to reveal a massive increase in revenue and an upgrade to its guidance for future results.

Revenue for the second quarter of the 2015 fiscal year, ended July 31 2014, totaled $1.32 billion, up 37.5% on an annual basis, while the net result of the quarter was a loss of $0.06bn, or $0.10 per share, in comparison with a $0.07bn profit a year ago. Non-GAAP profit, which excludes some expenses, was at $0.13.

Meanwhile, revenue for Q315 is projected at $1.365bn to $1.37bn, an increase of 27% year-over-year, while full-year revenue is forecast at $5.34bn to $5.37bn, an increase of 31% to 32% year-over-year.

“Salesforce.com continues to be the fastest growing top 10 software company,” said Marc Benioff , Chairman and CEO, salesforce.com. “We have now raised our fiscal 2015 revenue guidance by $170 million since we first initiated guidance last year.”

The San Francisco-based company is in a quickly growing market with a massive potential, as businesses move towards cloud-based software and away from the limitations of the clumsy on-site computing. Salesforce has been betting on further development in the field, acquiring companies vertically, which include data management startup RelateIQ, and e-mail marketing provider ExactTarget.

CEO Benioff said RelateIQs acquisition is something like “getting Salesforce on steroids,” while ExactTargets sales also bumped up sentiment, rising 10% in the last quarter.

Salesforce has also agreed partnership with tech-giant Microsoft, and Benioff said his company will unveil a “major new product” at its Dreamforce conference in October.

“We continue to see greater upside potential in the second half as our checks suggest there are mega-deals in the pipeline that could close,” J. Derrick Wood, analyst at Susquehanna, said in a note before the report.

Salesforce.com Inc. was 0.58% up to close at $55.71 per share yesterday, marking a one-year change of +28.07% and valuing the company at $34.21bn. According to CNN Money, the 38 analysts offering 12-month price forecasts for Salesforce.com Inc have a median target of $71.00, with a high estimate of $80.00 and a low estimate of $24.00. The median estimate represents a +27.45% increase from the last price of $55.71.