Salesforce.com beats analysts’ expectations by 1 cent

20 Nov 2014

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Salesforce.com's corporate headquarters in San Francisco, California. Photo by Ken Wolter/Shutterstock

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In its latest earnings call, Salesforce.com announced diluted non-GAAP earnings per share of US$0.14, surpassing analysts’ predictions by a single cent for the fourth quarter running.

Salesforce.com’s third-quarter results for the fiscal year 2015 revealed revenue of US$1.38bn for the customer relationship management company, marking an increase of 29pc year-on-year.

Subscription and support accounted for 93pc of this total revenue, rising 28pc year-on-year to US$1.29bn.

While representing a smaller sum of the whole, Salesforce.com’s revenue from professional services and other sources increased by one-third annually to reach US$95m.

In terms of cash generated from operations for the quarter ending 31 October 2014, the tally was US$123m, down 11pc year-on-year.

Salesforce.com’s decreasing cash flow has been attributed to the substantial sums of money off the books as deferred (US$2.22bn) and unbilled deferred revenue (US$5.4bn).

The third quarter’s diluted GAAP net loss of US$38,924 equates to a GAAP loss per share of US$0.06, an improvement on a US$0.21 loss per share compared in the year-ago period and less than last quarter’s US$0.10 loss per share. 

“Salesforce continues to be the fastest growing top 10 software company, with constant currency revenue and deferred revenue growth of 30pc or more year-over-year,” said chair and CEO Marc Benioff.

“Given the tremendous response to our Customer Success Platform, I’m delighted to announce a fiscal 2016 revenue projection of US$6.5bn at the high end of the range.”

Salesforce.com HQ image by Ken Wolter via Shutterstock

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Elaine Burke is managing editor of Siliconrepublic.com

editorial@siliconrepublic.com