Salesforce Inc (NYSE: CRM) shares are trading higher in Wednesday's after-hours session on the heels of the company's second-quarter results. Here's a rundown of the report and a look at what's driving the action.
Q2 Earnings: Salesforce said second-quarter revenue increased 11% year-over-year to $8.6 billion, which beat the consensus estimate of $8.52 billion, according to Benzinga Pro. The company reported quarterly earnings of $2.12 per share, which beat analyst estimates of 1.90 per share.
Cash flow from operations was up 142% year-over-year and free cash flow was up 379%. Operating margin came in at 17.2% for the second quarter.
"Based on our performance and what we see in the back half of the year, we're raising our fiscal year '24 revenue, operating margin, and operating cash flow growth guidance," said Marc Benioff, chair and CEO of Salesforce.
"As the #1 AI CRM, with industry-leading clouds, Einstein, Data Cloud, MuleSoft, Slack and Tableau, all integrated on one trusted, unified platform, we're leading our customers into the new AI era."
Outlook: Salesforce sees third-quarter revenue in a range of $8.7 billion to $8.72 billion versus estimates of $8.66 billion. The company expects third-quarter adjusted earnings of $2.05 to $2.06 per share versus estimates of $1.83 per share.
Salesforce raised full-year revenue guidance to a range of $34.7 billion to $34.8 billion versus estimates of $34.65 billion. The company sees full-year adjusted earnings between $8.04 and $8.06 per share versus estimates of $7.45 per share.
Management will hold a conference call to discuss these results at 5 p.m. ET.
CRM Price Action: Salesforce shares were up 7.05% after hours at $230.11 at the time of publication, according to Benzinga Pro.