Investing.com – Shares of Salesforce.com Inc (NYSE:CRM) traded higher in after-hours trade, as investors cheered the release of bullish quarterly results and forward guidance.
Salesforce reported earnings of $0.28 per share on $2.39 billion in revenue, against Wall Street estimates of earnings of $0.26 per share on $1.89 billion in revenue.
Revenues from the cloud-computing company’s flagship product, sales cloud, jumped 14.5% to $829.6 million.
Meanwhile, deferred revenue rose 26% to $5.04 billion, above analysts’ expectations of a rise to $4.93 billion.
Deferred revenue is a key measure used to gauge the performance of subscription-based companies such as Salesforce that record revenue in stages rather than at the time of the sale.
Salesforce’s forward guidance supported the company’s goal of becoming the first enterprise software company to reach $10 billion in revenue.
Salesforce said on Thursday, it expected a full-year adjusted profit of $1.28 to $1.30 per share and revenue of $10.25 billion to $10.30 billion against analysts’ expectations of profit of $1.29 per share on $10.19 billion in revenue.
Salesforce traded at $87.75, up 0.89% in after-hours, trade.