- Revenues increase by 29% to $5.15b compared to $3.99b a year ago.
- Company to replace ExxonMobil in 30-stock Dow Jones Industrial Average on August 31.
- Company recorded approximately $2b of benefit from income taxes due to a one-time discrete tax item from the recognition of deferred tax assets related to an intra-entity transfer of intangible property.
Bengaluru: Salesforce registered one of the best quarters for an enterprise cloud firm with profit skyrocketing 2,785 per cent to $2.6 billion in the second quarter compared to $91 million a year ago due to one-off income tax benefits.
During the three months ended July 31, 2020, the company recorded approximately $2 billion of benefit from income taxes due to a one-time discrete tax item from the recognition of deferred tax assets related to an intra-entity transfer of intangible property.
“It’s humbling to have had one of the best quarters in Salesforce’s history against the backdrop of multiple crises seriously affecting our communities around the world,” Marc Benioff, Chair and CEO of Salesforce, said.
The American cloud-based software company that specialises in customer relationship management (CRM) is to replace ExxonMobil in the 30-stock Dow Jones Industrial Average on August 31.
Its shares are trading at $273.52, up more than 26.6% on Wednesday. It is just shy of a 52-week high of $277.97.
The company’s revenues rose by 29% to $5.15 billion compared to $3.99 billion a year ago.
Subscription and support revenues for the quarter were $4.84 billion, an increase of 29% year-over-year. Professional services and other revenues for the quarter were $0.31 billion, an increase of 23% year-over-year.
Victory for stakeholder capitalism
The revenue from its cloud businesses stood at $1.28 billion, growing 13% on an annualised basis.
“This has been a challenging time for so many of us,” Benioff said during an interview to CNBC TV.
“We made key changes to our business so that we could go forward and go faster and that is why I’m so excited about this quarter. And also, this is a victory for stakeholder capitalism. We did a great job for our shareholders this quarter, but we did a great job for our stakeholders as well. This is a moment when we need to be thinking about not just how to serve all of our customers, but also how to take care of our communities.”
“In response to Covid-19, service leaders in every industry had to quickly adapt and find new ways to support employees while still delivering quality service to their customers,” said Mark Cattini, SVP of Field Service Management at Salesforce.
“This is one of the areas where Field Service Lightning shines, with AI-powered scheduling and resource optimisation that ensure technicians arrive at the right time, with the knowledge to successfully complete tasks the first time. This helps keep both the technician and customer safe.”