UPDATE 1-Salesforce revenue rises 31 percent in second quarter
SAN FRANCISCO, Aug 29 (Reuters) - Salesforce.com Inc reported second-quarter revenue rose 31 percent to $957 million, as demand among corporate customers for cloud-based sales and marketing software remained strong.
The company raised its full-year revenue guidance to between $4 billion and $4.025 billion, in line with Wall Street expectations of roughly $4 billion.
The forecast sent shares 8 percent higher after the bell to $47.
The company reported second-quarter earnings of 9 cents a share on Thursday, topping expectations of 7 cents, according to analysts polled by Thomson Reuters I/B/E/S. Salesforce said it expects earnings per share of between 32 cents and 34 cents for the full year.
For the past four years Chief Executive Marc Benioff has consistently delivered outsized revenue numbers but has spent lavishly to acquire - rather than internally develop - a new array of product offerings.
In June Benioff snapped up social marketing company ExactTarget for $2.5 billion, a significant bet that reflects his belief that consumer brands will increasingly want software to help them advertise on social media channels like Twitter.
But shares of the company have fluctuated wildly in recent quarters on fears that top-line growth may be losing steam despite Benioff's heavy expenditures - and given rising competition from competitors including Oracle Corp and SAP AG.
Research and development costs for the quarter rose 36 percent to $161 million, while sales and marketing costs rose 26 percent to $480.6 million.