Cloud lifts Salesforce aloft

Clouds in Oxford: pic Mike MageeSalesforce surprised the cocaine nose jobs of Wall Street by reporting better-than-expected quarterly revenue.

According to the company, its revenue was helped by an increase in demand for its web-based sales and marketing software. It also raised its full-year profit and revenue forecast.

Salesforce expects an adjusted profit of 50-52 cents per share on revenue of $5.34-$5.37 billion for the year ending Jan. 31. It had previously predicted it would make 49-51 cents on revenue of $5.30-$5.34 billion. Wall Street had been expected a profit of 51 cents per share on revenue of $5.34 billion.

Wall Street now suspects that Salesforce is sitting on a few mega-deals in the pipeline that it should close.

Salesforce is investing in software targeted at specific sectors such as healthcare to boost growth and has already signed some deals with Dutch healthcare and lighting company Philips to offer online management of chronic diseases.

Salesforce reported net loss of $61.1 million for the second quarter ended July 31, compared with a profit of $76.6 million, or 12 cents per share, a year earlier. Revenue rose to $1.32 billion from $957.1 million.

The outfit’s subscription and support revenue, which accounts for 93 percent of total revenue, rose 37 percent. Professional services revenue rose 58 percent.