Salesforce beat all investor expectations by posing a 4% rise in its stock prices and delivering financial results for the first quarter of 2018, which was better than expected. The company clocked a revenue of $3.01 billion vs. $2.95 billion as analysts assumed it.
Salesforce issued a statement where it predicted the earnings per share would come up between 45 and 46 percent in the second quarter, bringing the revenue to $3.22-$3.23 billion. According to the board of Salesforce, the company has seen a 25 percent year-on-year growth in its revenue. Almost all of its revenue comes from subscription and support fees.
The most significant contributor is Sales Cloud, the customer relationship management product. However, Service Cloud saw a more considerable increase in revenue year-over-year, 29.3 percent in the quarter. Another product that has picked up speed in the market is Einstein artificial intelligence technology, with over 2 billion predictions happening every day.
About three months ago, the company had raised its guidance more than ever. Post that, the company has announced its $6.5 billion acquisition of MuleSoft. It has also launched something for small businesses, Salesforce Essentials.
Speaking to analysts, chief financial officer Mark Hawkins said that MuleSoft would deliver $315 million in additional revenue in the fiscal year. He commented, “We are pleased with this, especially post-close.”
