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Salesforce.com Exceeds Analysts' Estimates After Adding Software Features

"We are becoming a trusted adviser" to companies addingsocial media and mobile computing to their operations, Benioffsaid. "In that process, deals are getting bigger."

First-quarter revenue will be $673 million to $678 million,Salesforce said. Analysts had projected $663.5 million onaverage. Revenues will be 33 cents to 34 cents a share,excluding some items, compared with a 36-cent estimate.

The company as well raised its revenue forecast for fiscal2013 to $2.92 billion to $2.95 billion. Analysts had predicted$2.91 billion. Revenues excluding some items will be $1.58 to$1.62 a share, compared with a $1.63 estimate.

Salesforce is facing increasing competition in the marketfor business applications delivered through cloud computing,which stores clients' data on remote servers. The approachprovides users with automatic upgrades to new versions inexchange for monthly or annual subscription fees.

The threat of those deals yesterday

Benioff played down the threat of those deals yesterday.SuccessFactors could get lost inside SAP, he said. And Oracle'scloud-computing acquisitions could confuse clients who buy itstraditional applications, Benioff said.

More information: Bloomberg