What happened

Shares of salesforce.com (NYSE:CRM) soared 39.9% in August, according to data provided by S&P Global Market Intelligence.

The customer relationship management (CRM) provider's stock price continues to set new all-time records and is up a stunning 63.3% year to date.

Person tapping on logos on transparent screen

Image source: Getty Images.

So what

The company released a sparkling set of earnings for its fiscal 2021 second quarter, ended July 31. Revenue continued to climb, rising by 29% year over year to $5.15 billion, while net income received a lift to $2.6 billion thanks to a one-time $2 billion net tax benefit arising from a change in its corporate structure. Broad-based revenue growth was seen across all of Salesforce's CRM products, with the Salesforce Platform division seeing the largest increase at 66% year over year. 

Current remaining performance obligations rose 26% year over year to $15.2 billion, and the company revised its full-year 2021 revenue guidance to between $20.7 billion to $20.8 billion, representing year-over-year growth of 21%. Operating cash flow generation for the first six months of the fiscal year stood steady at $2.3 billion, and the company generated around $1.9 billion of free cash flow, for a free cash flow margin of around 18.5%. 

Now what

Salesforce continues to push ahead of its competitors, registering a revenue market share of 18.4% in 2019 in worldwide CRM applications, according to IDC. The total addressable market for CRM applications stands at $176 billion, according to a Gartner forecast, and is poised to grow at a four-year compound annual growth rate of 14% from 2020 to 2023. With Salesforce being the dominant player in this industry, and with its revenue growing at double-digit rates accelerated by the shift to digital caused by the pandemic, the future looks bright for the company.