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 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).