{"id":42582,"date":"2017-08-23T07:27:22","date_gmt":"2017-08-23T07:27:22","guid":{"rendered":"https:\/\/www.biphoo.com\/bipnews\/?p=42582"},"modified":"2017-08-23T07:27:22","modified_gmt":"2017-08-23T07:27:22","slug":"salesforce-profit-beats-estimates-shares-drop-after-hours","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/technology\/salesforce-profit-beats-estimates-shares-drop-after-hours.html","title":{"rendered":"Salesforce profit beats estimates, shares drop after hours"},"content":{"rendered":"

Salesforce profit beats estimates, shares drop after hours<\/span><\/strong><\/span><\/h2>\n

Salesforce.com Inc posted a quarterly profit that narrowly beat analysts’ estimates as it invested heavily to fend off competition in the cloud-based software sector.<\/span><\/p>\n

Shares of the company fell 1 percent after the bell on Tuesday after closing at $92.95 on the New York Stock Exchange.<\/span><\/p>\n

The San Francisco-based tech giant’s net income grew to $241 million, or 33 cents per share, from $170 million, or 24 cents per share, a year earlier.<\/span><\/p>\n

Analysts were expecting net income of $229 million for the quarter.<\/span><\/p>\n

The company also reported deferred revenue – a key metric for the subscription-based software business – of $4.82 billion for the quarter, up 26 percent on the year, beating expected revenue of $4.69 billion, according to financial and data analytics firm FactSet.<\/span><\/p>\n

Revenue from Sales Cloud, the company’s flagship product, rose 17.4 percent to $886.4 million, while total revenue jumped 25.8 percent to $2.6 billion.<\/span><\/p>\n

“Salesforce’s growth is impressive,” said Joe Tenebruso, analyst for Motley Fool. “There aren’t many businesses that sizes that are growing so rapidly.”<\/span><\/p>\n

The cloud-based software maker has boosted spending on research and development as well as marketing and sales as it faces intense competition from companies including Oracle Corp and Microsoft Corp.<\/span><\/p>\n

“In the next few years, it’s going to be a tough battle in the cloud,” said Tom Taulli, InvestorPlace.com analyst. “Salesforce has done a great job so far, but the competition has gotten better.”<\/span><\/p>\n

Total operating costs rose 19.7 percent to $1.84 million in the second quarter ended July 31.<\/span><\/p>\n

On an adjusted basis, the company earned 33 cents per share.<\/span><\/p>\n

Analysts on average had expected a profit of 32 cents and revenue of $2.51 billion, according to Thomson Reuters I\/B\/E\/S.<\/span><\/p>\n

Salesforce.com profit beats estimates, shares drop after hours<\/span><\/p>\n

Salesforce.com Inc posted a quarterly profit that narrowly beat analysts’ estimates as it invested heavily to fend off competition in the cloud-based software sector.<\/span><\/p>\n

Shares of the company fell 1 percent after the bell on Tuesday after closing at $92.95 on the New York Stock Exchange.<\/span><\/p>\n

The San Francisco-based tech giant’s net income grew to $241 million, or 33 cents per share, from $170 million, or 24 cents per share, a year earlier.<\/span><\/p>\n

Analysts were expecting net income of $229 million for the quarter.<\/span><\/p>\n

The company also reported deferred revenue – a key metric for the subscription-based software business – of $4.82 billion for the quarter, up 26 percent on the year, beating expected revenue of $4.69 billion, according to financial and data analytics firm FactSet.<\/span><\/p>\n

Revenue from Sales Cloud, the company’s flagship product, rose 17.4 percent to $886.4 million, while total revenue jumped 25.8 percent to $2.6 billion.<\/span><\/p>\n

“Salesforce’s growth is impressive,” said Joe Tenebruso, analyst for Motley Fool. “There aren’t many businesses that sizes that are growing so rapidly.”<\/span><\/p>\n

The cloud-based software maker has boosted spending on research and development as well as marketing and sales as it faces intense competition from companies including Oracle Corp and Microsoft Corp.<\/span><\/p>\n

“In the next few years, it’s going to be a tough battle in the cloud,” said Tom Taulli, InvestorPlace.com analyst. “Salesforce has done a great job so far, but the competition has gotten better.”<\/span><\/p>\n

Total operating costs rose 19.7 percent to $1.84 million in the second quarter ended July 31.<\/span><\/p>\n

On an adjusted basis, the company earned 33 cents per share.<\/span><\/p>\n

Analysts on average had expected a profit of 32 cents and revenue of $2.51 billion, according to Thomson Reuters I\/B\/E\/S.<\/span><\/p>\n

Source:-\u00a0https:\/\/www.reuters.com\/article\/us-salesforce-com-results-idUSKCN1B22DZ<\/span><\/p>\n

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