Investing.com – Salesforce stock (NYSE:CRM) was up 2.7% in Thursday’s premarket trading after a strong second-quarter report that indicated many of the tailwinds for software companies created by the pandemic are stilll intact.
The company's revenue and earnings both beat estimates, while annual guidance was revised up for the third time.
Total second quarter revenue rose 23% to $6.34 billion as demand for its recent acquisition, office messaging application Slack, and its other Cloud-based software remained strong.
Remaining performance obligation was up 18% to $36.2 billion as governments and companies continued to ask for its business software amid a broad shift to office-home work and lifestyle. As supply chains got stretched and more locations needed to be managed to keep operations going, there was more demand for Salesforce’s products and services.
Salesforce raised its annual revenue guidance to $26.2 billion-$26.3 billion, up some 23%-24% on the year.
The company had guided for revenue of $25.45 billion-$25.55 billion in December 2020. It updated those numbers twice, first in February and then again in May.