- Salesforce.com, the largest maker of online sales software, raised its full-year revenue forecast for the fourth time this year after reporting a quarterly adjusted profit above market expectations.
- The company raised its revenue forecast for the year ending January 2016 from $6.60 billion-$6.63 billion to $6.64 billion-$6.65 billion.
- Salesforce says the jump is driven by higher demand for its web-based sales and marketing software.
Businesses have increasingly been choosing cheaper cloud software services over more traditional CRM systems produced by companies like Oracle and SAP. Salesforce provides its services online, so no software has to be installed on PCs, thereby also making it easier for companies to use.
"What we are finally seeing after many years is some reasonable operating margin expansion," FBN Securities analyst Shebly Seyrafi said.
Salesforce revenue rose 23.7% to $1.71 billion in the third quarter. Analysts had expected $1.70 billion, according to Thomson Reuters I/B/E/S.