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EARNINGS-Salesforce raises annual revenue forecast on remote work boost

Credit: REUTERS/Brendan McDermid

Salesforce.com Inc on Tuesday raised its annual revenue forecast and beat quarterly revenue estimates, as more companies used its online business software to support remote work during the COVID-19 pandemic.

Adds forecast, net income, segment revenue

Aug 25 (Reuters) - Salesforce.com Inc CRM.N on Tuesday raised its annual revenue forecast and beat quarterly revenue estimates, as more companies used its online business software to support remote work during the COVID-19 pandemic.

Salesforce's shares, which will be part of the Dow Jones Industrial Average index from Aug. 31, were up nearly 15% in extended trading.

The coronavirus outbreak has hastened the shift to remote work with many companies extending employees the option till the end of next year. This is benefiting software providers that help companies to take their operations online, enabling a smooth transition to remote work.

Revenue from Sales Cloud, an online software that helps manage sales and support for customers, rose 13% to $1.28 billion in the second quarter ended July 31.

Salesforce now expects revenue between $20.7 billion and $20.8 billion in the fiscal year 2021, up from its previous forecast of $20 billion.

Total revenue jumped about 29% to $5.15 billion in the second quarter, above the average analyst estimate of $4.90 billion, according to IBES data from Refinitiv.

Net income rose to $2.63 billion, or $2.85 per share from $91 million, or $0.11 per share, a year earlier.

(Reporting by Neha Malara and Shariq Khan in Bengaluru; Editing by Shinjini Ganguli)

((Neha.Malara@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6749 3443))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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