(Reuters) -Salesforce Inc has raised its full year adjusted profit forecast following a beating of quarterly revenue estimates. This was due to strong demand for software business applications as more companies adopt hybrid work arrangements.

Following a 37% decline in shares this year, San Francisco’s company saw its stock rise by 7%. This was after it had fallen around 37%.

Many companies invested generously in software, despite inflation rising to an unprecedented four-decades high and tapering consumer demands across a variety of sectors. This was to increase efficiencies and integrate modern work-flows such as hybrid-work.

The company’s profit forecast raise is a big positive as this is a key area of investor focus, especially in the current market environment, said William Blair & Company analyst Arjun Bhatia.

The adjusted profit for the year was increased to $4.75 per sy, up from $4.63 in its earlier forecast.

Over the two previous quarters, revenue increased by more than 25%, while operating margins dropped sharply with rising costs.

It has marginally reduced its revenue forecasts for fiscal year ending in January 2023 from $32 billion to 32.1 billion.

In the April 30 quarter, the company made a profit of 98 cents per share, which was a decrease from the average analyst estimate of 94 cents.

From $469million a year ago, net income dropped to $28 mil from $469 mil

According to Refinitiv’s IBES data, revenue rose by 24% to $7.41 Billion, exceeding analysts’ average estimate $7.38 Billion.