Salesforce reported a drop in profit and a 22% rise in revenue for the second quarter, defying its own prediction that it would lose money in the period because of accounting charges related to buying one of its subsidiaries.
The company raised is full-year revenue guidance, suggesting it is not seeing signs of weakness in enterprise software even though recession worries are getting more pronounced in some parts of the U.S. economy. The raised guidance also shows the company is inching closer to co-CEO Marc Benioff’s goal of surpassing $20 billion by 2022.
Total Q2 revenue was $4 billion, $3.75 billion of which came from software subscriptions and support. Professional services and other revenues were $252 million, a 14% year-over-year increase. Salesforce shares rose almost 7% in after hours trading.