Salesforce, which is a cloud-based software provider, announced its robust second-quarter fiscal year 2022 revenue results last August 25.
The company stated that this increase is mainly due to its acquisition of Slack, which is a communication platform.
Also, Salesforce benefitted from the work-from-home setup in the coronavirus pandemic era.
On Wednesday, August 25, the firm released its earnings per share of $1.48 with a revenue of $6.34 billion. This is a surge of 23% year-on-year (YoY) and a 21.00% constant currency.
This result is better than the expected analyst forecast of $0.9216 earnings per share and $6.24 billion in revenue.
The subscription and support revenues of Salesforce for this quarter reached $5.91 billion with an improvement of 22.00% YoY.
In addition, its professional service and other revenues came at $0.43 billion. This is a progress of 37.00% YoY.
Then, Salesforce’s second-quarter generally accepted accounting principles (GAAP) operating margin was 5.20%. While its non-GAAP operating margin reached 20.40%.
In terms of earnings per share, the firm’s second-quarter GAAP diluted EPS was $0.56 with a $1.48 non-GAAP diluted EPS.
The mark-to-market accounting of Salesforce’s deliberative investments profited GAAP diluted EPS of $0.42. This is based on the United States tax rate of $25%.
Additionally, the company had a non-GAAP diluted EPS of $0.43 according to the 21.5% non-GAAP tax rate.
Now, Salesforce smashed 0.46% with a net gain of $1.19 sending the stock price up to $260.85 per share.
On Thursday’s session, it is anticipated to open with another increase of 1.78% with a net addition of $4.65 to $265.50 per share.
Pandemic Drove Salesforce Revenue Up
Furthermore, the bright side of the pandemic for technology companies drove the second-quarter fiscal year 2022 revenue of Salesforce higher.
The software firm’s fresh report for its quarterly sales lifted its outlook for an entire year. This is due to the positive bets as the coronavirus delta variant continues to surge.
An analyst stated that Salesforce is one of the major beneficiaries of this pandemic.
This is because a lot of companies welcomed the cloud-based tools that Salesforce is offering to reconnect its users with their customers and staff.
Due to this, the stock of Salesforce since the official beginning of the pandemic era soared by over 75%.
Besides, the firm’s acquisition of the business communication platform Slack added to its huge jump in revenue.
The revenue data of Salesforce includes $530 million from Slack alone. This is over $30 million from the former’s forecast from the previous quarter.