News: Share prices drop in after hour trading.
Salesforce displayed continued growth in its 2017 second quarter financial results.
The CRM company reported Q2 revenue of $2.04 billion, up 25% year-over-year as subscription and support revenues reached $1.89bn, an increase of 24% year-over-year.
Professional services and other revenues stood at $151 million, an increase of 33% year-over-year.
Despite these promising numbers the company revealed that cash generated from operations was $251m, a decrease of 18% YOY, with total cash, cash equivalents and marketable securities finishing the quarter at $1.72bn.
The company raised full year fiscal guidance to between $8.275bn and $8.325bn in revenue and full year earnings per share remained on target between $0.93 to $0.95.
Marc Benioff, chairman and CEO, Salesforce, said: "Second quarter revenue grew 25% in dollars, and 26% in constant currency, propelling Salesforce past the $2 billion quarterly revenue milestone. No other enterprise software company of our size is growing at this pace.
"At Dreamforce, you're going to see the next generation of Salesforce when we unveil Salesforce Einstein, the world's first comprehensive artificial intelligence platform for CRM. I've never been more excited about the innovation happening at Salesforce."
Salesforce has been on a spending spree in 2016 with acquisitions of Demandware for $2.8bn, Coolan for an undisclosed fee, Quip for $582m, and a $400m contract with Amazon Web Services.
Despite all of the positives and the continued growth for the company, its shares fell as much as 8% in after-hours trading, which has been attributed to slightly lower than expected results.
Benioff said that this “softness” was temporary and came as a result of the normal enterprise-software sales cycle.
To fight off any doubts about the company there is likely to be a raft of new innovations at the Dreamforce conference in San Francisco on October 4th-7th. Already there is expected to be a big push on artificial intelligence with a platform to be known as Einstein.