NEW YORK (Reuters) - Salesforce.com Inc (CRM.N) raised its full-year revenue outlook as quarterly sales of its Web-based software surged, sending its stock up more than 7 percent.
The company, which is the world’s biggest provider of Web-based software, raised its full-year revenue outlook on Thursday to between $2.15 billion and $2.17 billion. It had previously forecast revenue of $2.03 billion to $2.05 billion.
Salesforce is benefiting as it adds new products to its line of software and tools for cloud-computing.
Cloud-computing, one of the fastest-growing areas in the technology sector, refers to the use of remote data centers to deliver software, data and computing power.
Trip Chowdhry, an analyst with Global Equities Research, said that the company’s sales are accelerating as it adds new products to its product line through technology it has purchased in recent acquisitions. It has recently bought a contacts database, analytics technology and software tools for writing cloud-based software.
“They have expanded the definition of their market. They’re getting more customers. And the more customers you get, the more revenue you get,” he said.
Salesforce reported that sales surged 34 percent from a year earlier to $504 million in the first quarter, ended April 30. That beat the average analyst forecast of $482.5 billion, according to Thomson Reuters I/B/E/S.
It also reported first-quarter profit, excluding items, of 28 cents per share, ahead of the 27 cent average forecast of analysts.
Shares of the San Francisco company rose 7.7 percent to $146.20 after the earnings report, from their close of $135.81 on the New York Stock Exchange.
Reporting by Jim Finkle; Editing by Steve Orlofsky, Gary Hill