Cloud giant Salesforce’s Q2 revenues surge 25pc to $2bn

1 Sep 2016211 Views

Salesforce plans to reveal unveil Salesforce Einstein, an artificial intelligence platform for CRM, at its upcoming Dreamforce conference

Cloud business software player Salesforce has reported a 25pc increase in second quarter revenues to $2bn.

CFO Mark Hawkins said that Salesforce grew deferred revenue – an important metric for cloud companies – by 26pc to $3.8bn.

However, the strong performance has been undermined by a warning that revenues in the third quarter might be lower than expected, which sent stock down 6pc in overnight trading.

‘No other enterprise software company of our size is growing at this pace’
– MARC BENIOFF, SALESFORCE

Salesforce, which has an international operation in Dublin, predicted that third-quarter revenues will be in the range of $2.1bn to $2.2bn, which is slightly below analyst expectations.

The company, however, raised its full-year revenue target to $8.3bn.

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“Second quarter revenue grew 25pc in dollars, and 26pc in constant currency, propelling Salesforce past the $2bn quarterly revenue milestone,” CEO Marc Benioff said.

“No other enterprise software company of our size is growing at this pace.

“At Dreamforce, you’re going to see the next generation of Salesforce when we unveil Salesforce Einstein, the world’s first comprehensive artificial intelligence platform for CRM. I’ve never been more excited about the innovation happening at Salesforce,” Benioff said.

Salesforce image via Shutterstock

John Kennedy is an award-winning technology journalist who served as editor of Siliconrepublic.com for 17 years.

editorial@siliconrepublic.com