Salesforce revenue rises 24 percent

So its profit-to-sales ratio now amounts to 0.1 per cent of revenue.

The company saw deferred revenue of $3.03 billion, a 29% year over year increase or 33% in constant currency. Professional services and other revenues totaled $113 million, up 32 percent year-over-year. The company even passed out Wall Street analyst expectations on earnings per share, coming in at 19 cents instead of 18 cents.

According to Gartner, a tech research firm, Salesforce, is a leader in the customer relationship management market globally which is valued worth $23 billion yearly.

The bulk of Salesforce’s quarterly revenue was driven by cloud service subscription and support, which contributed $1.41bn to the company’s coffers, growing by 22 percent year on year.

Cash: Cash generated from operations for the fiscal second quarter was $304 million, an increase of 24% year-over-year.

Chief Executive Officer Marc Benioff and President Keith Block have spent the past two years expanding into new markets with products for marketing, corporate social networks and data analytics, while also targeting the company’s Web-based technology at larger customers. The Thomson Reuters estimates for the third quarter called for EPS of $0.18 and $1.6 billion in revenue. Brean Capital is modeling revenues at $1.597 billion for the coming quarter as compared to consensus of $1.599 billion.

The biggest maker of online sales software in the world raised its full year revenue forecast for the current year from $6.52 billion-$6.55 billion to $6.60 billion-$6.63 billion.

The results prompted Salesforce to up its full-year financial forecast for 2016 from $6.52bn to $6.55bn.

GAAP loss per share is expected to be in the range of ($0.02) to ($0.01), while diluted non-GAAP earnings per share is expected to be in the range of $0.18 to $0.19. The Dow Jones Industrial Average dropped 358.04 points, or 2.1%, to 16,990.69, its steepest percentage decline since Feb 3, 2014.