Salesforce.com Inc.'s said late Wednesday its first-quarter net income rose sharply and raised full-year forecasts, citing increased revenue.
The San Francisco on-demand software leader said first-quarter revenue rose 52 percent year over year to $247.6 million, from $162.4 million for the same quarter of last year. Analysts were expecting $235.8 million, according to Thomson Reuters.
Shares of Salesforce, whose stock has increased 19 percent since it last reported results on February 27, fell 1 percent in after-hours trade as investors and analysts had higher expectations.
Salesforce's top line grew 50.4 percent in the preceding fourth quarter.
The company reported first-quarter net income of $9.6 million, or 8 cents per share, up from $730,000, or 1 cent per share, in the year-ago period. Revenue rose 52 percent to $247.6 million from $162.4 million a year earlier.
We're larger than a lot of software-as-a-service companies. But we're growing faster than they are, said Chairman and CEO Marc Benioff.
Our concern is that the stock is 'priced to perfection,' demanding ongoing upside to street estimates in an economic environment that remains challenging. Goldman Sachs said in a research note.