Salesforce.com, Inc. has reported a second-quarter revenue of $1.63 billion, 24 percent increase from the same period last year and a second-quarter adjusted earnings per share of $0.19, according to a press release issued by Salesforce.
The company also reported a second-quarter unbilled deferred revenue, representing the business that is contracted but unbilled and off balance sheet, of $6.2 billion, up 24 percent from last year of the same period.
Reuters added Salesforce revenue has beaten expectations as Thomson Reuters I/B/E/S says analysts were estimating an average of $1.60 billion for the company's second quarter revenue.
Earnings per share also beat expectations as analysts were estimating an average of $0.17 earnings per share for the second quarter.
Reuters adds that the better-than-expected results are due to an increase in demand for the company's sales and marketing software products.
Businesses have been opting for cheaper and easier cloud software services.
With the good results in profits and revenues in the second quarter, Salesforce will be raising its full-year revenue forecast.
The company's full-year revenue forecast, which will end in January 2016, is raised to approximately $6.60 billion to $6.625 billion, according to the press release.
The new forecast is an increase of 23 percent year-over-year.
"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," Marc Benioff, chairman and CEO of Salesforce, said in the press release.
"That puts us on pace to reach a $7 billion run rate later this year, and our goal is to be the fastest to reach $10 billion in annual revenue," he added.
Reuters added that Benioff is also targeting for the company to become the fourth largest software company in the world.
"... We'll go from being the sixth largest software company in the world to the fourth largest next year," he said to Reuters in a conference call.
Reuters adds that Salesforce shares were up 4 percent in extended trading after the company came out with the report.
