Salesforce.com (CRM) Lower Despite Q2 Top and Bottom-Line Beat, Q3 EPS Guidance Falls Short But FY In-Line
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Price: $37.65 -1.57%
EPS Growth %: -73.0%
Financial Fact:
Interest expense: -11.88M
Today's EPS Names:
CEDU, CHC, CIDM, More
EPS Growth %: -73.0%
Financial Fact:
Interest expense: -11.88M
Today's EPS Names:
CEDU, CHC, CIDM, More
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Shares of salesforce.com (NYSE: CRM) are trading lower by 5 percent in after-hours trading on Thursday following the release of the company’s earnings report. The report showed revenue of $731.65 million, slightly above estimates of $728.21. The company reported revenue of $546.00million last year.
Turning to earnings, the company beat estimates by 3 cents (42c vs 39c expected). Last year the company reported non-GAAP diluted EPS of 30c.
"Our second quarter revenue growth was outstanding at 34% in dollars and 37% in constant currency," said Marc Benioff, Chairman and CEO, salesforce.com. "Salesforce.com's social enterprise strategy is enabling companies to connect with customers, partners, and employees in completely new ways – and it's creating new opportunities for their growth and ours."
Deferred revenue on the balance sheet as of July 31, 2012 was $1.34 billion, an increase of 43% on a year-over-year basis. Current deferred revenue increased by 38% year-over-year to $1.27 billion, benefited in part by longer invoice durations. Non-current deferred revenue increased by 293% year-over-year to $69 million. Unbilled deferred revenue, representing business that is contracted but unbilled and off balance sheet, ended the second quarter at approximately $2.8 billion, up from approximately $2.7 billion at the end of the fiscal first quarter.
In the current quarter (Q3), the company sees revenues of $773 to $777 million, versus the consensus of $771.34 million and sees EPS of $0.31-$0.32, which is below the Street which is at $0.34.
For 2013, salesforce.com expects revenue of $3.025-$3.035 billion, versus consensus of $3.02 billion. The company issued EPS guidance of $1.48 to $1.51, right in-line with the consensus of $1.49. EPS growth also appears to be flat-lining somewhat, although concerns here could be a bit of a stretch.
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Turning to earnings, the company beat estimates by 3 cents (42c vs 39c expected). Last year the company reported non-GAAP diluted EPS of 30c.
"Our second quarter revenue growth was outstanding at 34% in dollars and 37% in constant currency," said Marc Benioff, Chairman and CEO, salesforce.com. "Salesforce.com's social enterprise strategy is enabling companies to connect with customers, partners, and employees in completely new ways – and it's creating new opportunities for their growth and ours."
Deferred revenue on the balance sheet as of July 31, 2012 was $1.34 billion, an increase of 43% on a year-over-year basis. Current deferred revenue increased by 38% year-over-year to $1.27 billion, benefited in part by longer invoice durations. Non-current deferred revenue increased by 293% year-over-year to $69 million. Unbilled deferred revenue, representing business that is contracted but unbilled and off balance sheet, ended the second quarter at approximately $2.8 billion, up from approximately $2.7 billion at the end of the fiscal first quarter.
In the current quarter (Q3), the company sees revenues of $773 to $777 million, versus the consensus of $771.34 million and sees EPS of $0.31-$0.32, which is below the Street which is at $0.34.
For 2013, salesforce.com expects revenue of $3.025-$3.035 billion, versus consensus of $3.02 billion. The company issued EPS guidance of $1.48 to $1.51, right in-line with the consensus of $1.49. EPS growth also appears to be flat-lining somewhat, although concerns here could be a bit of a stretch.
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