Salesforce.com delivers above Q2 targets, outlook strong

CEO Marc Benioff boasted a much more ambitious outlook, calling for a $7 billion run rate this year on top of the goal of being the fastest software company yet to reach $10 billion in annual revenue.

Salesforce.com published better-than-expected second quarter financial results after the bell on Thursday.

The tech giant reported non-GAAP earnings of 19 cents per share on a revenue of $1.63 billion, up 24 percent year-over-year (statement).

Wall Street was looking for earnings of 18 cents per share with $1.60 billion in revenue.

Subscription and support revenues jumped by nearly the same amount on an annual basis to $1.52 billion. Professional services and other revenues totaled $113 million, up 32 percent year-over-year.

For the current quarter, Wall Street is looking for non-GAAP earnings of 18 cents per share with $1.68 billion in revenue.

Salesforce responded with a projected Q3 revenue range of $1.69 billion to $1.70 billion with earnings between 18 and 19 cents per share. Salesforce also bolstered its annual revenue outlook to $6.60 billion to $6.625 billion.

Marc Benioff, Salesforce's co-founder and CEO, shed light on the company's ambitious long-term outlook, citing goals to reach a $7 billion run rate this year as well as become the fastest software company yet to reach $10 billion in annual revenue.

"Salesforce has now blown past the $6.5 billion annual revenue run rate faster than any other enterprise software company, and we are once again raising our fiscal year 2016 revenue guidance to $6.625 billion at the high end of our range," Benioff wrote in prepared remarks.

In anticipation of its annual Dreamforce sales extravaganza this September, Salesforce has been sprinkling updates and new releases here and there lately.

Last week, the CRM giant bolstered its portfolio of a bevy of new connected apps for Apple Watch with more than new 20 apps built by industry partners on the Salesforce1 Platform with the Salesforce Wear developer pack.

Just the week prior, Salesforce infused its cornerstone Marketing Cloud with Instagram data through the photo sharing app's advertising API.

The Instagram add-on followed up a refresh for Salesforce's Marketing Cloud in June, which included some new features for its upgraded Journey Builder tool for mapping customer experiences and engagement.