Salesforce.com Announces Record Fiscal Fourth Quarter Results
SAN FRANCISCO, Calif. – February 25, 2009
First Enterprise Cloud Computing Company to Achieve Fiscal Year Revenue of One Billion Dollars
- Record Revenue of $290 Million, up 34% Year-Over-Year
- GAAP EPS of $0.11, up 83% Year-Over-Year
- Net Customers Increase 3,600 in the Quarter to 55,400
- Net Paying Subscribers Increase 400K Year-Over-Year to Surpass 1.5 Million
- Operating Cash Flow of $76 Million for Quarter; $230 Million for Fiscal
- Total Cash and Marketable Securities of $883 Million, up $213 Million
- Company Updates FY10 Revenue Guidance to $1.30 - $1.33 Billion
(NYSE: CRM), the enterprise cloud computing company, today announced results for its fiscal fourth
quarter and full fiscal year ended January 31, 2009.
“Salesforce.com is proud to be the first billion dollar cloud computing company," said Marc
Benioff, chairman and CEO, salesforce.com. "At a time when capital is precious, big-ticket software
purchases just don’t make sense."
Salesforce.com delivered the following results for the fourth quarter and full fiscal year
Revenue: Total Q4 revenue was $289.6 million, an increase
of 34% on a year-over-year basis and an increase of 5% on a quarter-over-quarter basis.
Subscription and support revenues were $266.1 million, an increase of 35% on a year-over-year basis
and an increase of 5% on a quarter-overquarter basis. Professional services and other revenues were
$23.5 million, an increase of 15% on a year-over-year basis and an increase of 2% on a
For the full fiscal year 2009, the company reported revenue of approximately $1.077 billion,
an increase of 44% from the prior year. Subscription and support revenues were $984.6 million for
the year, an increase of 45%, while professional services revenue rose 35% to $92.2 million.
Earnings per Share: Q4 GAAP diluted earnings per share were
approximately $0.11, including approximately $21.1 million in stock based compensation expense and
approximately $2.9 million in amortization of purchased intangibles related to previously announced
acquisitions. For purposes of the Q4 GAAP EPS calculations, there was an average of approximately
125 million diluted shares outstanding during the quarter.
For the full year, GAAP diluted earnings per share rose approximately 130% year-over-year to
$0.35, including approximately $77.4 million in stock based compensation and approximately $8.0
million in amortization of purchased intangibles related to previously announced acquisitions. For
purposes of the GAAP EPS calculations, there was an average of approximately 125 million diluted
shares outstanding during the year.
Customers and Paying Subscribers: Net paying customers rose
approximately 3,600 during the quarter and approximately 14,400 during the year to finish at
approximately 55,400. Net paying subscribers rose to greater than 1.5 million, an increase of
approximately 400,000 from the prior fiscal year end.
Cash: Cash from operations for the fiscal fourth quarter
was approximately $76 million, up from $17 million in the third quarter, and down 7%
year-over-year. For the full year, operating cash flow totaled $230 million, an increase of 12%
from the prior year. Total cash, cash equivalents and marketable securities finished the year at
approximately $883 million, an increase of approximately $78 million from Q3 and approximately $213
million from the prior fiscal year end.
Deferred Revenue: Deferred revenue on the balance sheet as
of January 31, 2009 was $594 million, an increase of 24% on a year-over-year basis and 27% on a
As of February 25, 2009, salesforce.com is initiating guidance for its first quarter, fiscal
year 2010. For its full fiscal year 2010, the company is updating its prior revenue guidance and
initiating EPS guidance.
Q1 FY10: Revenue for the company’s first fiscal quarter is
projected to be in the range of approximately $304 million to approximately $305 million. GAAP
diluted EPS is expected to be in the range of approximately $0.10 to approximately $0.11. Stock
based compensation expense is expected to be approximately $22 million, and amortization of
purchased intangibles is expected to be approximately $2.6 million. For purposes of the Q1 GAAP EPS
calculation, the company is expecting an average diluted shares count of 126 million shares, a GAAP
tax rate of approximately 43% and a minority interest expense of approximately $200,000.
Quarterly Conference Call
Full Year FY10: The company today is updating the full year
revenue guidance it provided on November 20, 2008, with revenue now expected to be approximately
$1.30 billion to approximately $1.33 billion. The company is also initiating its earnings outlook
for the full year, expecting GAAP diluted EPS to be in the range of approximately $0.54 to
approximately $0.55. Stock based compensation expense is expected to be approximately $91 million,
and amortization of purchased intangibles 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 128 million shares, a GAAP tax rate of approximately 43%, and a minority
interest expense of approximately $1 million.
Salesforce.com will host a conference call to discuss its fourth quarter fiscal 2009 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 706-902-1764. A replay will
be available at (800) 642-1687 or (706) 645-9291, passcode 84582465, until midnight (EST) March 13,
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/au/.
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/au/, or call 1800 667 638 (Australia) or 0800 450 064 (New Zealand).