Salesforce.com Announces Record Fiscal First Quarter Results
SAN FRANCISCO, Calif. – May 21, 2008
First Ever Software-as-a-Service Company to Exceed $950M Annual Revenue Run Rate
- Record Revenue of $248 Million, up 52% Year-Over-Year
- Record Operating Cash Flow of $84 Million, up 128% Year-Over-Year
- GAAP EPS of $0.08, up from $0.01 Year-Over-Year
- Net Paying Customers Rise 2,600 to a record 43,600
- Total Cash and Marketable Securities Increases $303 Million Year-Over-Year to
- Company Raises FY09 Revenue & GAAP EPS Guidance to $1.060 - $1.065 Billion
and $0.33 - $0.34 Respectively
(NYSE: CRM), the market and
technology leader in Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS), today
announced results for its fiscal first quarter ended April 30, 2008.
“First quarter revenues were up 52% year-over-year, and well above our guidance,” said Marc
Benioff, Chairman and CEO. “And our growing profitability contributed to GAAP EPS of eight cents
per share, up from one cent a year ago, and record operating cash of $84M, an increase of 128% from
the prior year. Salesforce.com has now generated more than a quarter billion dollars of operating
cash in the last 12 months alone.”
Salesforce.com delivered the following results for its first quarter fiscal year 2009:
Revenue: Total Q1 revenue was $247.6 million, an increase
of 52% on a year-over-year basis and an increase of 14% on a quarter-over-quarter basis.
Subscription and support revenues were $225.3 million, an increase of 53% on a year-over-year basis
and an increase of 15% on a quarter-over-quarter basis. Professional services and other revenues
were $22.3 million, an increase of 51% on a year-over-year basis and an increase of 9% on a
Earnings per Share: Q1 GAAP diluted earnings per share were
approximately $0.08, including approximately $18 million in stock based compensation and
approximately $1.3 million in amortization of purchased intangibles related to previously announced
acquisitions. For the basis of Q1 GAAP EPS calculations, there was an average of approximately 124
million diluted shares outstanding during the quarter.
Customers Additions: Net paying customers rose
approximately 2,600 during the quarter to approximately 43,600. Compared with the year ago quarter,
net paying customers have grown by approximately 11,300.
Cash: Cash from operations for the fiscal first quarter was
approximately $84 million, up 128% year-over-year, up 4% from Q4, and a company record for the 3rd
consecutive quarter. Total cash, cash equivalents and marketable securities finished the quarter at
approximately $751 million, an increase of approximately $81 million from Q4 and up approximately
$303 million from the year prior.
Deferred Revenue: Deferred revenue on the balance sheet as
of April 30, 2008 was approximately $470 million, an increase of 59% on a year-over-year basis and
a decline of 2% on a quarter-over-quarter basis.
As of May 21, 2008, salesforce.com is initiating guidance for its second quarter, fiscal year
2009. In addition, for its full fiscal year 2009 the company is raising its revenue and EPS
Q2 FY09: Revenue for the company’s second fiscal quarter is
projected to be in the range of approximately $258 million to approximately $259 million. GAAP
diluted EPS is expected to be in the range of approximately $0.07 to $0.08. This estimate includes
the effects of stock based compensation and the amortization of purchased intangibles. For the
second fiscal quarter, stock based compensation expense is expected to be approximately $19
million, and the expense associated with amortization of purchased intangibles is now expected to
be approximately $1.3 million. For purposes of the Q2 GAAP EPS calculation, the company is
expecting an average diluted shares count of approximately 125 million shares, and a GAAP tax rate
Quarterly Conference Call
Full Year FY09: The company today is raising the full year
revenue guidance it provided on February 27, 2008, with revenue now expected to be approximately
$1.060 billion to approximately $1.065 billion. The company is also raising its earnings outlook
for the full year, expecting GAAP diluted EPS to be in the range of approximately $0.33 to $0.34.
GAAP EPS estimates include the effects of stock based compensation and the amortization of
purchased intangibles. For the full fiscal year 2009, stock based compensation expense is expected
to be approximately $83 million, and the expense associated with the amortization of purchased
intangibles is currently expected to be approximately $5.3 million. For purposes of the full fiscal
year 2009 GAAP EPS calculation, the company is expecting an average diluted shares count of
approximately 125 million shares, and a GAAP tax rate of 48%.
Salesforce.com will host a conference call to discuss its first quarter fiscal 2009 results
today at 2:00 p.m. Pacific Time. 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 706-902-1764. A replay will
be available at (800) 642-1687 or (706) 645-9291, passcode 46678383, until midnight Eastern Time
June 13, 2008.
Salesforce.com is the market and technology leader in Software-as-a-Service (SaaS) and
Platform-asa- Service (PaaS). The company's portfolio of SaaS applications, including its
award-winning CRM, available at http://www.salesforce.com/products/, has revolutionized the ways
that customers manage and share business information over the Internet. The company’s Force.com
PaaS enables customers, developers and partners to build powerful on-demand applications that
deliver the benefits of multi-tenancy across the enterprise. Applications built on the Force.com
platform, available at http://www.force.com/, can be easily shared, exchanged and installed with a
few simple clicks via salesforce.com's AppExchange marketplace available at
As of April 30, 2008, salesforce.com manages customer information for approximately 43,600
customers including ABN AMRO, Dow Jones Newswires, Japan Post, Kaiser Permanente, KONE, Sprint
Nextel, 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 second fiscal quarter of 2009 and the full fiscal year 2009, and our expected tax
rate, stock based compensation expense, amortization rate, 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 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; competition; various financial aspects of our subscription model; 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; 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 and interest rates.
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 April 30, 2008 and our Form 10-K for the fiscal year ended January 31, 2008.
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.
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Salesforce.com is the world’s largest provider of customer relationship management (CRM) software. For more information about salesforce.com (NYSE: CRM), visit: www.salesforce.com/ap/.
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://salesforce.com/ap/, or call 800 1301 448 (Singapore) or 800 967 655 (Hong Kong) or +65 6302 5700.