CRM software maker Salesforce has forecast strong first quarter financial performance, higher than what Wall Street analysts had estimated.
Building on the increasing demand for cloud-based software, the company predicted first quarter revenue of between $480 million and $482 million while profit is expected to be around 26 cent to 27 cent per share.
The company also expects the full year revenue to be more than $2 billion thanks to a strong demand for cloud-based software. Salesforce offers customer relations management software and other cloud tools that can be accessed over the internet, allowing companies to cut down on IT costs.
Salesforce CEO Marc Benioff told analysts, “While it took us a decade to achieve our first billion dollars, we anticipate reaching $2 billion just three years later.”
The company's fourth quarter profits excluding items came out at 31 cent per share with revenue rising to $457 million. Analysts had expected the company to report earnings of around 26 cent per share and revenue of $453 million.