Salesforce.com (CRM) Sees No Cloudy Skies Following Q4 Results
Revenue was $632 million, an increase of 38 percent on a year-over-year basis, topping the Street's forecast of $624.03 million for the quarter. Subscription and support revenues rose 39 percent while professional services and other revenues increased 33 percent.
The cost of revenues increased 47.7 percent year-over-year to $136.34 million from $92.31 million in the previous year's fourth quarter. The total cost of revenues equated to 22 percent of total sales, up 2 percent year-over-year. Gross profit rose from $364.56 million in the previous year’s fourth quarter to $495.57 million, a 35.8 percent increase year over year.
Net income attributable to salesforce.com totaled a loss of $4.08 million for the quarter, down substantially from the $10.91 million reported last year. Fourth quarter GAAP net loss per share was $0.03, and non-GAAP diluted earnings per share was $0.43. The Street's consensus was calling for earnings of $0.40 per share.
Cash generated from operations was $240 million, an increase of 45 percent on a year-over-year basis. The company ended the quarter with $607.28 million in cash and cash equivalents, up from the $424.29 million it had at the end of January 2011.
For the first quarter of fiscal 2013, revenue is projected to be in the range of $673 million to $678 million, an increase of 33-34 percent, year-over-year. GAAP net loss per share is expected to be in the range of ($0.19) to ($0.18), while diluted non-GAAP EPS is expected to be in the range of $0.33 to $0.34. The Street's consensus call for $663.14 million in sales on $0.36 per share in earnings.
For fiscal 2013, revenue is estimated to be in the range of $2.92 billion to $2.95 billion, an increase of 29-30 percent, year-over-year. GAAP net loss per share is expected to be in the range of ($0.55) to ($0.51) while diluted non-GAAP EPS is expected to be in the range of $1.58 to $1.62. The Street's consensus call for $663.14 million in sales on $0.36 per share in earnings.
"Salesforce.com's 38% revenue growth in the fourth quarter was a spectacular finish to our fiscal year, a year in which we delivered 37% revenue growth and added nearly 2,500 employees, including nearly 2,000 in the U.S.," said Marc Benioff, Chairman and CEO, salesforce.com. "Given the strong customer response to the social enterprise, we're excited to raise our guidance today, which puts us on pace to exceed the $3 billion revenue run rate during FY13."