With revenue at $316 million, up 20 percent

Aug 21, 2009 11:09 GMT  ·  By

Salesforce has posted better than expected earnings for the second quarter with revenue up 20 percent year over year, at $316 million, and a net income of $21.2 million. The income comes in at 17 cents per share, more than double the 8 cents it made last year in the same period and above analysts' forecast, which estimated 15 cents per share.

"We are pleased to report record revenue and GAAP earnings per share for our fiscal second quarter," said Marc Benioff, chairman and CEO, salesforce.com. "We added 3,900 net new customers, bringing our total to more than 63,000, with our Service Cloud turning in its best quarter ever."

Salesforce offers cloud-based software as a service solutions for businesses and has seen big growth lately. Its Customer Relationship Management products have managed to attract 32 percent more customers – around 15,500 – than in 2008, bringing the total number to about 63,200. The company was founded in 1999 by ex-Oracle executive Marc Benioff and has been trading in the New York Stock Exchange since 2004.

Broken down, subscriptions and support services brought in $293.4 million in the second quarter, a 22 percent yearly growth, but its professional services and the other revenue sources saw a 3 percent drop, managing only $22.6 million.

Following the good Q2 results, the company has high expectations for the full fiscal year, estimating a revenue of $1.27 billion to $1.28 billion and earning 60 to 61 cents per share. Revenue for the fiscal third quarter is also expected to be higher, with the company estimating $323 million to $324 million. However, income per share is expected to be lower, at around 15 cents to 16 cents. Share price went up 9 percent on the news, closing at $46.18 and rising to $50.29 in after-hours trading, according to Reuters.