Salesforce (NYSE:CRM) shares rose early Wednesday after the enterprise-software company reported fiscal second-quarter earnings that surpassed analysts’ expectations, the day after S&P Dow Jones Indices said Salesforce will replace Exxon Mobil (NYSE:XOM) in the 30-stock Dow Jones Industrial Average on Monday.
The adjusted earnings were boosted by mark-to-market accounting for the company’s investments, according to a statement. The company saw a $617-million unrealized gain in the quarter through its stake in nCino, a company operating cloud-based software for banks that went public in July. Salesforce also derives revenue from nCino’s use of its services.
Salesforce’s overall revenue grew 29% year over year in the fiscal second quarter, which ended on July 31, Revenue grew 30% last quarter earlier.
Revenue from the core Sales Cloud, which enables salespeople and managers to keep track of business, totaled $1.28 billion, growing 13% on an annualized basis. The Service Cloud product for customer support delivered $1.30 billion in revenue, up about 20%.
Service Cloud revenue also slightly exceeded that of Sales Cloud one quarter earlier. The company’s Platform and Other category, which includes the Tableau data visualization software Salesforce acquired last year for $14.8 billion, came to $1.51 billion, up nearly 66%.
In the quarter, Salesforce announced the introduction of Work.com tools to help organizations return to work after the onset of the coronavirus pandemic, which caused offices around the world to close.
CRM opened trading Wednesday higher by $38.62, or 17.9%, to $254.67.
Tech Insider
