Salesforce Q2 tops estimates on strong sales across clouds

Subscription and support revenues increased 22% annually to $3.75 billion.

Salesforce reported strong second quarter financial results on Thursday that topped estimates and raised its fiscal 2020 guidance. The CRM giant delivered non-GAAP earnings of 66 cents per share on revenue of $4 billion, up 22% year over year.

Wall Street was looking for earnings of 47 cents per share with revenue of $3.95 billion. Salesforce stock was up nearly 7% in late trading.

Elsewhere on the balance sheet, the company's Q2 net income was $91 million, or 11 cents per share. Subscription and support revenues increased 22% annually to $3.75 billion. Professional services and other revenues totaled $252 million, up 14% year over year.

Breaking subscription revenues down by segment, Sales Cloud revenue was $1.13 billion, Service Cloud revenue was $1.09 billion, Marketing and Commerce Cloud revenue was $616 million, and Salesforce platform and other revenue was $912 million.

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As for the outlook, analysts are looking for earnings of 61 cents a share on revenue of $4.25 billion for the current quarter. Salesforce responded with a revenue range of $4.44 billion to $4.45 billion and earnings between 65 and 66 cents per share.

For the full-year, Salesforce expects earnings between $2.82 and $2.84 per share on revenue between $16.75 billion and $16.9 billion, representing growth of 31% year over year.