Salesforce.com Announces Fiscal Third Quarter Results
First Enterprise Cloud Computing Company to Exceed $1.3 Billion Annual Revenue Run Rate
- Record Revenue of Approximately $331 Million, up 20% Year-Over-Year
- GAAP EPS of $0.16, up 100% Year-Over-Year
- Operating Cash Flow of $36M, up 107% Year-Over-Year
- Record 4,700 Net New Customers During the Quarter
- Total Customers at 67,900, up 31% Year-Over-Year
- Total Cash and Marketable Securities of $1.07 Billion, up $265 Million Year-Over-Year
- Company Raising Full Year Revenue Guidance to Approximately $1.29 Billion
- Company Raising Full Year GAAP EPS Guidance to Approximately $0.62 to $0.63
SAN FRANCISCO, Nov. 17 /PRNewswire-FirstCall/ -- Salesforce.com (NYSE: CRM), the enterprise cloud computing company, today announced results for its fiscal third quarter ended October 31, 2009.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050216/SFW105LOGO)
"We are pleased to report record revenue, profit, and customer additions in Q3," said Marc Benioff, chairman and CEO, salesforce.com. "This gives us fantastic momentum as we head into Dreamforce, where we will announce our biggest product news of the year."
Salesforce.com delivered the following results for its third quarter, fiscal year 2010:
Revenue: Total Q3 revenue was $330.5 million, an increase of 20% on a year-over-year basis. Subscription and support revenues were $306.9 million, an increase of 21% on a year-over-year basis. Professional services and other revenues were $23.7 million, an increase of 3% on a year-over-year basis.
Earnings per Share: Q3 GAAP diluted earnings per share were approximately $0.16, including approximately $20.4 million in stock-based compensation expense and approximately $2.6 million in amortization of purchased intangibles related to previously announced acquisitions. For purposes of the Q3 GAAP EPS calculation, there was an average of approximately 129 million diluted shares outstanding during the quarter.
Customers: Net paying customers rose approximately 4,700 during the quarter to finish at approximately 67,900. Compared with the year ago quarter, net paying customers have grown by approximately 16,100 or 31%.
Cash: Cash generated from operations for the fiscal third quarter was approximately $36 million, up approximately 107% year-over-year. Total cash, cash equivalents and marketable securities finished the quarter at approximately $1.07 billion, an increase of approximately $265 million from the year prior.
Deferred Revenue: Deferred revenue on the balance sheet as of October 31, 2009 was $545 million, an increase of 16% on a year-over-year basis.
As of November 17, 2009, salesforce.com is initiating guidance for its fourth quarter, fiscal year 2010. For its full fiscal year 2010, the company is raising its prior revenue and EPS guidance. In addition, the company is initiating revenue guidance for its full fiscal year 2011.
Q4 FY10: Revenue for the company's fourth fiscal quarter is projected to be in the range of approximately $340 million to approximately $342 million. GAAP diluted EPS is expected to be in the range of approximately $0.14 to approximately $0.15. Stock-based compensation expense is expected to be approximately $26 million, and amortization of purchased intangibles of previously announced acquisitions is expected to be approximately $2.6 million. For purposes of the Q4 GAAP EPS calculation, the company is expecting an average diluted share count of approximately 132 million shares, a GAAP tax rate of approximately 40% and a noncontrolling interest charge of approximately $1.5 million.
Full Year FY10: The company today is raising the full year revenue guidance it provided on August 20, 2009 with revenue now expected to be approximately $1.292 billion to approximately $1.294 billion. The company is also raising its earnings outlook for the full year, expecting GAAP diluted EPS to be in the range of approximately $0.62 to approximately $0.63. Stock-based compensation expense is expected to be approximately $89 million, and amortization of purchased intangibles of previously announced acquisitions is expected to be approximately $9.9 million. For purposes of the full fiscal year 2010 GAAP EPS calculation, the company is expecting an average diluted share count of approximately 127 million shares, a GAAP tax rate of approximately 42%, and a noncontrolling interest charge of approximately $3.5 million.
Full Year FY11: The company is initiating revenue guidance for its full fiscal year 2011 with projected revenue growth in the range of approximately 15% to 16% when compared to projected fiscal year 2010. The company expects to update this guidance, as well as provide its expectations for FY11 GAAP EPS when it announces its fourth quarter, fiscal year 2010 results planned for February, 2010.
Quarterly Conference Call
Salesforce.com will host a conference call to discuss its third quarter fiscal 2010 results at 2:00 p.m. Pacific Standard Time today. A live audio webcast of the conference call, together with detailed financial information, can be accessed through the company's Investor Relations Web site at http://www.salesforce.com/investor. In addition, an archive of the webcast can be accessed through the same link. Participants who choose to call in to the conference call can do so by dialing domestically 866-901-SFDC or 866-901-7332 and internationally at 706-902-1764. A replay will be available at (800) 642-1687 or (706) 645-9291, passcode 39679783, until midnight (EST) December 8, 2009.
About salesforce.com
Salesforce.com is the enterprise cloud computing company. The company's portfolio of Salesforce CRM applications, available at http://www.salesforce.com/products/, has revolutionized the ways that companies collaborate and communicate with their customers across sales, marketing and service. The company's Force.com Platform (http://www.salesforce.com/platform/) enables customers, partners and developers to quickly build powerful business applications to run every part of the enterprise in the cloud. Based on salesforce.com's <http://salesforce.com> real-time, multi-tenant architecture, Salesforce CRM and Force.com offer the fastest path to customer success with cloud computing.
As of October 31, 2009, salesforce.com manages customer information for approximately 67,900 customers including Allianz Commercial, Dell, Dow Jones Newswires, Japan Post, Kaiser Permanente, KONE, and SunTrust Banks.
Any unreleased services or features referenced in this or other press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase salesforce.com applications should make their purchase decisions based upon features that are currently available. Salesforce.com has headquarters in San Francisco, with offices in Europe and Asia, and trades on the New York Stock Exchange under the ticker symbol "CRM". For more information please visit http://www.salesforce.com, or call 1-800-NO-SOFTWARE.
"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements about expected revenue and GAAP earnings per share for the fourth fiscal quarter of 2010 and the full fiscal year, expected revenue for fiscal year 2011, and our expected tax rate, stock-based compensation expense, amortization expense, noncontrolling interest charge, and shares outstanding, the achievement of which involve risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.
The risks and uncertainties referred to above include - but are not limited to - risks associated with possible fluctuations in our financial and operating results, rate of growth and anticipated revenue run rate; errors, interruptions or delays in our service or our Web hosting; breaches of our security measures; the financial impact of any future acquisitions; the nature of our business model; our ability to continue to release, and gain customer acceptance of, new and improved versions of our service; successful customer deployment and utilization of our existing and future services; changes in our sales cycle; competition; various financial aspects of our subscription model; unexpected increases in attrition or decreases in new business; the emerging market in which we operate; our ability to hire, retain and motivate our employees and manage our growth; changes in our customer base; technological developments; regulatory developments; litigation; unanticipated changes in our effective tax rate; and fluctuations in the number of shares we have outstanding, the price of such shares, foreign currency exchange rates, interest rates, and general developments in the economy, financial markets, and credit markets.
Further information on these and other factors that could affect our financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time, including our Form 10-Q that will be filed for the quarter ended October 31, 2009 and our Form 10-K for the fiscal year ended January 31, 2009. These documents are available on the SEC Filings section of the Investor Information section of our website at www.salesforce.com/investor.
Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
Copyright (c) 2009 salesforce.com, inc. All rights reserved. Salesforce and the "no software" logo are registered trademarks of salesforce.com, inc., and salesforce.com owns other registered and unregistered trademarks. Other names used herein may be trademarks of their respective owners.
salesforce.com, inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
October 31, October 31,
2009 2008 2009 2008
---- ---- ---- ----
Revenues:
Subscription and support $306,870 $253,403 $882,078 $718,464
Professional services and
other 23,679 23,084 69,456 68,722
------ ------ ------ ------
Total revenues 330,549 276,487 951,534 787,186
Cost of revenues (1):
Subscription and support 40,745 32,424 116,744 91,802
Professional services and
other 24,825 23,924 73,122 69,935
------ ------ ------ ------
Total cost of revenues 65,570 56,348 189,866 161,737
Gross profit 264,979 220,139 761,668 625,449
Operating expenses (1):
Research and development 32,763 26,270 95,450 70,070
Marketing and sales 152,166 136,452 436,647 389,930
General and administrative 49,909 41,284 139,818 117,797
------ ------ ------- -------
Total operating expenses 234,838 204,006 671,915 577,797
Income from operations 30,141 16,133 89,753 47,652
Interest, net 7,211 3,840 18,987 17,270
Other income (expense) (336) 534 (1,037) (1,069)
---- --- ------ ------
Income before provision for
income taxes and noncontrolling
interest 37,016 20,507 107,703 63,853
Provision for income taxes (15,573) (8,824) (45,426) (29,693)
------- ------ ------- -------
Consolidated net income 21,443 11,683 62,277 34,160
Less: Net income attributable
to noncontrolling interest (752) (1,559) (1,952) (4,485)
---- ------ ------ ------
Net income attributable to
salesforce.com $20,691 $10,124 $60,325 $29,675
======= ======= ======= =======
Earnings per share - basic and
diluted:
Basic net income per share
attributable to salesforce.com
common shareholders $0.17 $0.08 $0.49 $0.25
Diluted net income per share
attributable to salesforce.com
common shareholders $0.16 $0.08 $0.48 $0.24
Shares used in computing basic
net income per share 124,561 121,635 123,871 120,759
Shares used in computing
diluted net income per share 128,596 125,133 126,993 125,173
(1) Amounts include stock-based
expenses, as follows:
Cost of revenues $2,995 $2,817 $9,322 $8,149
Research and development 2,707 2,494 8,741 6,852
Marketing and sales 9,055 9,235 28,314 26,105
General and administrative 5,650 4,730 16,570 15,119
salesforce.com, inc.
Condensed Consolidated Statements of Operations
As a percentage of total revenues:
(Unaudited)
Three Months Nine Months
Ended Ended
October 31, October 31,
2009 2008 2009 2008
---- ---- ---- ----
Revenues:
Subscription and support 93% 92% 93% 91%
Professional services and other 7 8 7 9
--- --- --- ---
Total revenues 100 100 100 100
Cost of revenues:
Subscription and support 12 12 12 12
Professional services and other 8 8 8 9
--- --- --- ---
Total cost of revenues 20 20 20 21
Gross profit 80 80 80 79
Operating expenses:
Research and development 10 10 10 9
Marketing and sales 46 49 46 49
General and administrative 15 15 15 15
--- --- --- ---
Total operating expenses 71 74 71 73
Income from operations 9 6 9 6
Interest, net 2 1 2 2
Other income (expense) 0 0 0 0
--- --- --- ---
Income before provision for income taxes and
noncontrolling interest 11 7 11 8
Provision for income taxes (5) (3) (5) (4)
--- --- --- ---
Consolidated net income 6 4 6 4
Less: Net income attributable to noncontrolling
interest 0 0 0 0
--- --- --- ---
Net income attributable to salesforce.com 6% 4% 6% 4%
=== === === ===
Stock-based expenses as a percentage of total
revenues, as follows:
Cost of revenues 1% 1% 1% 1%
Research and development 1 1 1 1
Marketing and sales 3 3 3 3
General and administrative 1 2 2 2
salesforce.com, inc.
Condensed Consolidated Balance Sheets
(in thousands)
October 31, January 31,
2009 2009
---- ----
(unaudited)
Assets
Current assets:
Cash and cash equivalents $242,888 $483,834
Short-term marketable securities 202,446 213,769
Accounts receivable, net 191,297 266,555
Deferred commissions 37,065 39,384
Deferred income taxes 26,992 31,900
Prepaid expenses and other current assets 62,227 33,115
------ ------
Total current assets 762,915 1,068,557
Marketable securities, noncurrent 624,758 184,962
Fixed assets, net 95,598 77,027
Deferred commissions, noncurrent 17,077 17,699
Deferred income taxes, noncurrent 30,695 26,589
Capitalized software, net 32,780 29,989
Goodwill 45,402 44,872
Other assets, net 33,976 30,127
------ ------
Total assets $1,643,201 $1,479,822
========== ==========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $15,617 $16,379
Accrued expenses and other current liabilities 174,309 163,205
Income taxes payable 3,050 3,619
Deferred revenue 533,502 583,763
------- -------
Total current liabilities 726,478 766,966
Income taxes payable, noncurrent 19,298 12,490
Long-term lease liabilities and other 14,952 7,616
Deferred revenue, noncurrent 11,933 10,263
------ ------
Total liabilities 772,661 797,335
salesforce.com stockholders' equity:
Common stock 125 123
Additional paid-in capital 775,838 648,724
Accumulated other comprehensive loss (3,239) (2,905)
Retained earnings 86,167 25,842
------ ------
Total stockholders' equity controlling
interest 858,891 671,784
Total stockholders' equity noncontrolling
interest 11,649 10,703
------ ------
Total stockholders' equity 870,540 682,487
------- -------
Total liabilities and stockholders' equity $1,643,201 $1,479,822
========== ==========
salesforce.com, inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Three Months Ended Nine Months Ended
October 31, October 31,
2009 2008 2009 2008
---- ---- ---- ----
Operating activities:
Consolidated net income $21,443 $11,683 $62,277 $34,160
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and amortization 13,601 7,910 37,890 24,938
Amortization of deferred
commissions 15,698 14,784 45,959 43,414
Expenses related to stock-
based awards 20,407 19,276 62,947 56,225
Excess tax benefits from
employee stock plans (7,401) (17,706) (32,536) (42,247)
Loss on securities - 2,052 - 2,052
Changes in assets and liabilities:
Accounts receivable, net (22,515) (9,002) 75,355 64,077
Deferred commissions (18,013) (13,682) (43,018) (40,564)
Prepaid expenses and other
current assets (12,892) (6,313) (14,711) (12,406)
Other assets (506) (2,943) (624) (429)
Accounts payable 2,228 6,621 (762) 12,951
Accrued expenses and other
current liabilities 27,045 14,733 35,165 23,497
Deferred revenue (3,575) (10,292) (48,591) (11,640)
------ ------- ------- -------
Net cash provided by
operating activities 35,520 17,121 179,351 154,028
------ ------ ------- -------
Investing activities:
Purchase of subsidiary stock - (16,693) - (16,693)
Business combinations, net of
cash acquired (4,500) (27,344) (4,500) (27,344)
Purchase of marketable securities (218,056) (123,476) (980,519) (323,415)
Sales of marketable securities 121,413 26,656 438,679 84,187
Maturities of marketable
securities 55,400 66,557 119,566 200,387
Capital expenditures (14,089) (11,614) (46,845) (48,827)
------- ------- ------- -------
Net cash used in investing
activities (59,832) (85,914) (473,619) (131,705)
------- ------- -------- --------
Financing activities:
Proceeds from the exercise of
stock options 18,559 6,595 32,866 40,605
Excess tax benefits from
employee stock plans 7,401 17,706 32,536 42,247
Principal payments on capital
lease obligations (2,398) (286) (5,904) (291)
------ ---- ------ ----
Net cash provided by
financing activities 23,562 24,015 59,498 82,561
------ ------ ------ ------
Effect of exchange rate changes (2,531) 49 (6,176) (1,665)
------ --- ------ ------
Net (decrease) increase in cash and
cash equivalents (3,281) (44,729) (240,946) 103,219
Cash and cash equivalents,
beginning of period 246,169 427,043 483,834 279,095
------- ------- ------- -------
Cash and cash equivalents, end
of period $242,888 $382,314 $242,888 $382,314
======== ======== ======== ========
salesforce.com, inc.
Additional Metrics
(Unaudited)
Oct 31, Jul 31, April 30, Jan 31, Oct 31, Jul 31,
2009 2009 2009 2009 2008 2008
---- ---- ---- ---- ---- ----
Full Time
Equivalent
Headcount 3,814 3,653 3,607 3,566 3,318 3,046
Financial data
(in thousands):
Cash, cash
equivalents
and marketable
securities $1,070,092 $1,030,406 $983,824 $882,565 $804,606 $823,417
Deferred
revenue,
current and
noncurrent $545,435 $549,010 $549,373 $594,026 $469,534 $479,546
Three Months Ended Nine Months Ended
October 31, October 31,
2009 2008 2009 2008
---- ---- ---- ----
Revenues by geography
(in thousands):
Americas $232,802 $200,143 $679,460 $567,076
Europe 60,761 48,076 168,355 142,597
Asia Pacific 36,986 28,268 103,719 77,513
------ ------ ------- ------
$330,549 $276,487 $951,534 $787,186
======== ======== ======== ========
As a percentage of total revenues:
Revenues by geography:
Americas 70% 72% 71% 72%
Europe 18 17 18 18
Asia Pacific 12 11 11 10
--- --- --- ---
100% 100% 100% 100%
=== === === ===
SOURCE salesforce.com
RELATED LINKS
http://www.salesforce.com
More by this Source
Salesforce.com Announces Annual Stockholders Meeting to Be Held in San Francisco on Thursday, June 6, 2013
May 09, 2013, 16:30 ET
Salesforce.com Announces Timing of its First Quarter Fiscal 2014 Financial Results Conference Call
May 02, 2013, 16:25 ET
Salesforce.com Launches Salesforce Communities--Ending the Era of Legacy Portal Software
May 02, 2013, 05:00 ET
Featured Video
Journalists and Bloggers
Visit PR Newswire for Journalists for releases, photos, ProfNet experts, and customized feeds just for Media.
View and download archived video content distributed by MultiVu on The Digital Center.
Custom Packages
Browse our custom packages or build your own to meet your unique communications needs.
Learn about PR Newswire services
Request more information about PR Newswire products and services or call us at (888) 776-0942.
- Site Preview
-
Close Site Preview
-
View FullScreen
