Salesforce Marketing Cloud Sees 29% Revenue Boost in Q2

Marketing Cloud Growth Comes on Heels of Company's More Aggressive Push Into Ad Tech

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Marc Benioff
Marc Benioff

Salesforce's Marketing Cloud doubled the number of large deals it did, year-over-year, in the second quarter of fiscal 2016, the company said on its earnings call after market close on Thursday.

While it's still the smallest among the software giant's clouds in terms of revenue, it's fast-growing. Subscription and support revenue from the marketing cloud was $157.9 million during the quarter, up 29% from $122.4 million during the same period last year.

The marketing cloud was among other business units, such as the Sales Cloud, Services Cloud and AppExchange, that contributed to to the company's top-line growth during the quarter, as well as the bump the company needed to join the Fortune 500 camp.

Salesforce reported total quarterly revenue of $1.63 billion, up 24% year-over-year. Net income narrowed from a loss of $61.1 million during the same period last year to a loss of $852,000 this quarter.

"This second quarter was the best quarter we have ever had at," said CEO Marc Benioff during the earnings call. "We are once again raising our fiscal year 2016 revenue guidance to $6.625 billion at the high end of our range," he added in a statement. "That puts us on pace to reach a $7 billion run rate later this year, and our goal is to be the fastest to reach $10 billion in annual revenue."

Earlier this year, the company rolled out an offering called Active Audiences that would enable its customers to use their CRM data to trigger ads on Facebook and Twitter.

In June, the marketing tech giant announced its "Next Gen Marketing Cloud" as part of an ongoing strategy to provide clients with a more integrated offering across its previously disparate sales, customer service and marketing businesses. Customers can now use their CRM data to buy display ads across devices, beyond just Facebook and Twitter.

As part of that "next-gen" approach, the company partnered with a few ad-tech and data companies, including Acxiom's Liveramp, Neustar and Viant.

Salesforce declined to comment on the impact the marketing-cloud changes had on its marketing-cloud growth or current quarterly results.

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