Salesforce reported strong second quarter financial results on Wednesday that topped estimates. The CRM giant delivered non-GAAP earnings of 71 cents per share on revenue of $3.28 billion, up 27 percent year over year.
Wall Street was looking for earnings of 47 cents per share with revenue of $3.23 billion. Salesforce stock was down roughly one percent in late trading.
"Salesforce revenue grew 27 percent to almost $3.3 billion in the second quarter, with excellent performance across our clouds, industry segments and geographies," said the company's recently minted co-CEO, Keith Block. "With this strong quarter, we're well on our way to our next milestone of $23 billion in revenue in FY22."
The company's Q2 net income was $299 million, or 39 cents per share. Subscription and support revenues increased 28 percent annually to $3.06 billion. Professional services and other revenues totaled $221 million, up 28 percent year over year.
Breaking subscription revenues down by segment, Sales Cloud revenue was $1 billion, Service Cloud revenue was $900 million, Marketing and Commerce Cloud revenue was $500 million, and Salesforce platform and other revenue was $700 million.
As for the outlook, analysts are looking for earnings of 54 cents a share on revenue of $3.35 billion for the current quarter. Salesforce responded short of expectations, with a revenue range of $3.35 billion to $3.36 billion and earnings between 49 and 50 cents per share.
For the full-year, Salesforce expects earnings between $2.50 and $2.52 per share on revenue between $13.12 billion and $13.17 billion.