Salesforce.com Announces Fiscal Second Quarter Results
Company Raises FY2010 Revenue and EPS Guidance
• Record Revenue of $316 Million, up 20% Year-Over-Year
• Record GAAP EPS of $0.17, up 113% Year-Over-Year
• GAAP Operating Margin of 9.3%, up from 6.1% a Year Ago
• 3,900 Net New Customers during the Quarter
• Total Customers at 63,200, up 32% Year-Over-Year
• Total Cash and Marketable Securities of $1.03 Billion, up $207 Million Year-Over-Year
• Company Raises FY2010 Revenue Guidance to $1.27 Billion to $1.28 Billion
• Company Raises FY2010 EPS Guidance to $0.60 to $0.61
SAN FRANCISCO, Calif. – August 20, 2009 – Salesforce.com (NYSE: CRM), the enterprise cloud computing company, today announced results for its fiscal second quarter ended July 31, 2009."We are pleased to report record revenue and GAAP earnings per share for our fiscal second quarter," said Marc Benioff, chairman and CEO, salesforce.com. "We added 3,900 net new customers, bringing our total to more than 63,000, with our Service Cloud turning in its best quarter ever." Salesforce.com delivered the following results for the second quarter:
Revenue: Total Q2 revenue was $316.1 million, an increase of 20% on a year-over-year basis. Subscription and support revenues were $293.4 million, an increase of 22% on a year-over-year basis. Professional services and other revenues were $22.6 million, a decrease of 3% on a year over- year basis.
Earnings per Share: Q2 GAAP diluted earnings per share were approximately $0.17, including approximately $20.9 million in stock based compensation expense and approximately $2.2 million in amortization of purchased intangibles related to previously announced acquisitions. For purposes of the Q2 GAAP EPS calculations, there was an average of approximately 127 million diluted shares outstanding during the quarter.
Customers: Net paying customers rose approximately 3,900 during the quarter to finish at approximately 63,200. Compared with the year ago quarter, net paying customers have grown by approximately 15,500 or 32%.
Cash: Cash from operations for the fiscal second quarter was approximately $45.9 million, down 14% year-over-year. Total cash, cash equivalents and marketable securities finished the quarter at approximately $1.03 billion, an increase of approximately $207 million from the year prior.
Deferred Revenue: Deferred revenue on the balance sheet as of July 31, 2009 was $549 million, an increase of 14% on a year-over-year basis. As of August 20, 2009, salesforce.com is initiating guidance for its third quarter, fiscal year 2010. For its full fiscal year 2010, the company is raising its prior revenue guidance and EPS guidance.
Q3 FY10: Revenue for the company's third fiscal quarter is projected to be in the range of approximately $323 million to approximately $324 million. GAAP diluted EPS is expected to be in the range of approximately $0.15 to approximately $0.16. Stock based compensation expense is expected to be approximately $20 million, and amortization of purchased intangibles of previously announced acquisitions is expected to be approximately $2.2 million. For purposes of the Q3 GAAP EPS calculation, the company is expecting an average diluted shares count of approximately 128 million shares, a GAAP tax rate of approximately 42% and a noncontrolling interest expense of approximately $600,000.
Full Year FY10: The company today is raising the full year revenue guidance it provided on May 21, 2009, with revenue now expected to be approximately $1.27 billion to approximately $1.28 billion. The company is also raising its earnings outlook for the full year, expecting GAAP diluted EPS to be in the range of approximately $0.60 to approximately $0.61. Stock based compensation expense is expected to be approximately $86 million, and amortization of purchased intangibles of previously announced acquisitions is currently expected to be approximately $9.3 million. For purposes of the full fiscal year 2010 GAAP EPS calculation, the company is expecting an average diluted shares count of approximately 127 million shares, a GAAP tax rate of approximately 42%, and a noncontrolling interest expense of approximately $2.8 million.
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 July 31, 2009, salesforce.com manages customer information for approximately 63,200 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.
