Shares of Salesforce rose by 4% Tuesday after the announcement by the company of its quarterly results that were better than had been expected for its 2019 fiscal year first quarter.
Salesforce earnings excluding special items reached 74 cents a share, while revenue came in at $3.01 billion which was higher than expectations on Wall Street of $2.95 billion.
As far as guidance is concerned, Salesforce in a prepared statement said its fiscal second quarter would have earnings per share of between 46 cents and 47 cents, excluding special items, with revenue of between $3.22 billion and $3.23 billion.
Analysts expected a forecast by Salesforce for revenue of $3.11 billion.
Revenue of the company across the board rose by 25% year over year. Salesforce receives almost all revenue it generates from its subscriptions and its service fees and in that particular category its revenue reached $2.81 billion which was up over 27%. That figure was above expectations of analysts for $2.72 billion.
The largest product for Salesforce is its customer relationship management tool Sales Cloud, but Service Cloud enjoyed better growth year over year at 29.3% during the quarter.
The company’s artificial intelligence technology Einstein is being used more with over 2 billion predictions taking place each day.
At the end of the previous quarter, Salesforce increased it guidance higher than it had ever done previously. Since then it has announced the acquisition of MuleSoft for $6.5 billion. It also made the announcement of the launch of its Salesforce Essentials that is for small businesses.
During a call with financial analysts Mark Hawkins the CFO at Salesforce said that MuleSoft will give Salesforce $315 million in addition revenue during the current fiscal year. Hawkins added that Salesforce was pleased with that especially post-close.
Salesforce increased its full fiscal year 2019 guidance by over $47.5 million saying it would come in at between $13.09 billion and $13.13 billion.
Shares of Salesforce have increased by 24% since the start of 2018.