Salesforce earnings beat on strong subscription growth

FILE PHOTO: The company logo for is displayed on the Salesforce Tower in New York City, U.S., March 7, 2019. REUTERS/Brendan McDermid

(Reuters) - Inc beat Wall Street estimates for quarterly profit and revenue on Tuesday as it benefited from higher demand for its business software from companies that are ramping up their move to the cloud.

The company also forecast 2020 profit in the range of $2.89 and $2.90 per share, above analysts’ estimates of $2.86 per share.

Revenue from the company’s flagship product, Sales Cloud, rose 14.5% to $1.17 billion in the third quarter ended Oct. 31.

Excluding items, the company earned 75 cents per share, while analysts on average had expected 66 cents, according to IBES data from Refinitiv.

Total revenue rose 33% to $4.51 billion, above analysts’ estimates of $4.45 billion.

The company, however, reported a net loss of $109 million, or 12 cents per share, in the latest quarter, compared with a profit of $105 million, or 13 cents per share, a year earlier.

The company’s shares fell 2% in extended trading. They have risen 18% this year.

Reporting by Neha Malara in Bengaluru; Editing by Anil D’Silva