November 27, 2018 / 9:34 PM / a year ago

UPDATE 1-Sales Cloud drives Salesforce profit, revenue beat

(Adds shares, details)

Nov 27 (Reuters) - Inc beat analysts' estimates for quarterly earnings on Tuesday as customers looking to rein in costs boosted demand for its flagship Sales Cloud business.

Shares of the San Francisco-based company, that have risen about 25 percent this year, were up 3.5 percent in extended trading.

Revenue in the company's flagship product, Sales Cloud, rose nearly 11 percent to $1.02 billion.

The company's unearned revenue, a metric that helps measure future business for subscription-based software vendors, rose about 25 percent to $5.38 billion. Analysts on average expected $5.20 billion, according to financial and data analytics firm FactSet.

Salesforce forecast current-quarter profit between 54 cents and 55 cents per share, and revenue of $3.55 billion to $3.56 billion.

Analysts on average are expecting a profit of 57 cents on revenue of $3.52 billion, according to IBES data from Refinitiv.

Excluding items, the company earned 61 cents per share, while analysts were expecting 50 cents.

Net income fell to $105 million, or 13 cents per share, in the third quarter ended Oct. 31, from $107 million, or 14 cents per share, a year earlier.

Total revenue rose 26 percent to $3.39 billion, beating analysts' average estimate of $3.37 billion. (Reporting by Akanksha Rana in Bengaluru; Editing by Shailesh Kuber)

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