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UPDATE 1-Salesforce profit beats on strong cloud business

(Compares with estimates; adds details on segment rev, share move)

Feb 28 (Reuters) - Salesforce.com Inc posted a quarterly profit that topped Wall Street targets on Wednesday but the report failed to live up to rising expectations and its recently soaring shares fell.

Shares of the company, which have risen nearly 14 percent this year, were down marginally at $115.66 in extended trading.

The San Francisco-based company has benefited from the growing trend among companies switching to cloud-based services due to lower costs and high level of scalability.

Revenue from Sales Cloud, its flagship product which allows companies to store data, monitor progress and simplify business processes, rose nearly 16 percent to $931.8 million.

Sales Cloud is the largest contributor to the company's subscription and support revenue.

Subscription and support revenue, which accounts for more than half of the total revenue, rose nearly 26 percent to $2.66 billion, beating the average analyst estimate of $2.59 billion, according to Thomson Reuters I/B/E/S.

Salesforce holds more than 18 percent share of the global customer relationship management software market, followed by Oracle with 9.4 percent, according to 2016 figures provided by research firm IDC.

The company reported a net income of about $67.6 million, or 9 cents per share, in the fourth quarter ended Jan. 31, compared with a loss of $51.4 million, or 7 cents per share, a year earlier.

Excluding items, the company earned 35 cents per share.

Total revenue rose 24.3 percent to $2.85 billion. Analysts on average were expecting a profit of 33 cents per share and a revenue of $2.81 billion. (Reporting by Laharee Chatterjee in Bengaluru; Editing by Arun Koyyur)