Salesforce just keeps going from strength to strength, with the CRM giant posting yet another successful quarter with revenues jumping 26% year-over-year.
CEO Marc Benioff was his usual confident self in saying that the company was on track to hit a milestone never before reached by any other enterprise software company. The Salesforce CEO said:
“We had a phenomenal quarter of growth, reaching a huge milestone for the company, becoming the first enterprise cloud software company to break the $10 billion revenue run rate.”
“We did this faster than any other enterprise software company in history. Our continued momentum as the leader in CRM, the fastest-growing segment of our industry, combined with more than $15 billion in billed and unbilled deferred revenue, puts us well on the path to $20 billion and beyond.”
There were significant jumps across the board in the company’s Q2, with total revenue standing at $2.56 billion, an increase of 26% year-over-year, and 25% in constant currency. Subscription and support revenues were $2.37 billion, an increase of 26% year-over-year. Professional services and other revenues were $193 million, an increase of 28% year-over-year.
Deferred revenue on the balance sheet as of July 31, 2017 was $4.82 billion, an increase of 26% year-over-year, and 25% in constant currency. Unbilled deferred revenue, representing business that is contracted but unbilled and off balance sheet, ended the second quarter at approximately $10.4 billion, up 30% year-over-year. This includes approximately $625 million related to unbilled deferred revenue from Demandware.
The successful quarter saw Salesforce raise its FY18 revenue guidance by a staggering $100 million, to $10.35 billion.
However, despite the raised guidance and impressive quarter, Salesforce stock dropped almost 3% before trading flat in after hours.
Salesforce has been regularly releasing new software and updates to its existing portfolio throughout the year, with the CRM company increasingly focused on adding artificial intelligence to its arsenal.
The addition of Salesforce Einstein across a large swathe of Salesforce’s portfolio appears to be resonating with the customers as more flock to the SaaS innovator.