Software-as-a-service giant salesforce.com (NYSE:CRM) reported fiscal 2020 second-quarter results on Aug. 22. Despite its immense size, the $130 billion company continues to grow at a rapid rate. 

Salesforce.com results: The raw numbers

Metric

Q2 2020

Q2 2019

Change

Revenue

$4 billion

$3.3 billion

22%

Operating cash flow

$436 million

$458 million

(5%)

Adjusted EPS

$0.66

$0.71

(7%)

Data source: salesforce.com Q2 2020 earnings release.

What happened with salesforce.com this quarter?

During a conference call with analysts, Chairman and co-CEO Marc Benioff noted that global spending on digital transformation is forecast to grow 18% year over year to $1.18 trillion in 2019, according to market intelligence firm IDC. "And Salesforce is at the center of this massive shift because every digital transformation of every single one of these companies that we're talking to begins and ends with the customer," Benioff said.

Benioff further stated:

Every company needs an intelligent 360-degree view of their customers. They need to personalize every customer experience. They need to predict customer behavior and anticipate their customers' needs. And they need to build modern mobile apps quickly and deliver the right services at the right time on any device.

Salesforce is building a platform that addresses each of these needs, with recent acquisitions such as data integration specialist MuleSoft and data visualization leader Tableau helping to bolster its already stacked lineup of service offerings. In turn, Salesforce is enjoying robust growth across its business lines. Revenue in its sales cloud segment rose 13% to $1.1 billion, while revenue in its service cloud jumped 22%, also to $1.1 billion. Growth in Salesforce's platform and marketing businesses was even more impressive; revenue in these segments surged 28% and 36%, respectively, to $0.9 billion and $0.6 billion. 

Better still, Salesforce is winning new business at an impressive clip. The software giant's remaining performance obligation, which represents contracted revenue that has not yet been recognized, grew by 20% to $25.3 billion.

People sitting around a table working on mobile devices with digital charts above them

Salesforce is well-positioned to win in an increasingly digital world. Image source: Getty Images.

All told, Salesforce's non-GAAP (adjusted) net income -- which excludes share-based compensation and acquisition-related items -- came in at $526 million, or $0.66 per share. That was below the $0.71 in per-share earnings Salesforce earned in the prior-year quarter, but well above management's guidance for adjusted EPS of $0.47. 

Looking forward

Based on these results and current sales trends, Salesforce boosted its full-year guidance. The company now expects revenue to increase by 26%-27%, rather than 21%-22%. That would place its full-year revenue at between $16.75 billion and $16.90 billion.

"We have an incredible opportunity ahead as more and more companies invest in their digital transformation," co-CEO Keith Block said. "Across every industry, every geography, they're turning to Salesforce as their trusted advisor and our Customer 360 platform as the foundation and catalyst for their growth."