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Salesforce.com Announces Record Fiscal Fourth Quarter Results
Salesforce.com (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 fourth quarter and full fiscal year ended January 31, 2008.
"Our fourth quarter and full-year results show that businesses are selecting the Force.com Platform-as-a-Service and cloud computing over failed client-server alternatives," said Marc Benioff, chairman and CEO, salesforce.com. "There's only one way to describe both the consolidation of the industry and the growing number of companies choosing innovation, not infrastructure: The End of Software."
Salesforce.com delivered the following results for the fourth quarter and full fiscal year 2008:
Revenue: Total Q4 revenue was $216.9 million, an increase of 50% on a year-over-year basis and an increase of 13% on a quarter-over-quarter basis. Subscription and support revenues were $196.5 million, an increase of 49% on a year-over-year basis and an increase of 11% on a quarter-over-quarter basis. Professional services and other revenues were $20.4 million, an increase of 68% on a year-over-year basis and an increase of 24% on a quarter-over-quarter basis.
For the full fiscal year 2008, the company reported revenue of approximately $748.7 million, an increase of 51% from the prior year. Subscription and support revenues were $680.6 million for the year, an increase of 51%, while professional services revenue rose 50% to finish at $68.1 million.
Earnings per Share: Q4 GAAP diluted earnings per share were approximately $0.06, including approximately $16 million in stock based compensation and approximately $1.3 million in amortization of purchased intangibles related to previously announced acquisitions. For the basis of Q4 GAAP EPS calculations, there was an average of approximately 124 million diluted shares outstanding during the quarter.
For the full year, GAAP diluted earnings per share were approximately $0.15, including approximately $55 million in stock based compensation and approximately $5.0 million in amortization of purchased intangibles related to previously announced acquisitions. For the basis of full year GAAP EPS calculations, there was an average of approximately 122 million diluted shares outstanding during the year.
Customers and Paying Subscribers: Net paying customers rose approximately 2,900 during the quarter and approximately 11,200 during the year to finish at approximately 41,000. Net paying subscribers rose to nearly 1.1 million, an increase of more than 450,000 year over year.
Cash: Cash from operations for the fiscal fourth quarter was a record at approximately $81 million, up 55% sequentially, and up 112% year-over-year. For the full year, operating cash flow totaled more than $204 million, an increase of 84% from the prior year. Total cash, cash equivalents and marketable securities finished the year at approximately $670 million, an increase of approximately $99 million from Q3 and up approximately $257 million from the year prior.
Deferred Revenue: Deferred revenue on the balance sheet as of January 31, 2008 was $481 million at year end, an increase of 69% on a year-over-year basis and 41% on a quarter-over-quarter basis.
As of February 27, 2008, salesforce.com is initiating guidance for its first quarter, fiscal year 2009. For its full fiscal year 2009, the company is raising its prior revenue guidance and initiating EPS guidance.
Q1 FY09: Revenue for the company's first fiscal quarter is projected to be in the range of approximately $233 million to approximately $235 million. GAAP diluted EPS is expected to be in the range of approximately $0.06 to $0.07. This estimate includes the effects of stock based compensation and the amortization of purchased intangibles. For the first fiscal quarter FY09, stock based compensation expense is expected to be approximately $17 million, and the expense associated with the amortization of purchased intangibles is now expected to be approximately $1.3 million. For purposes of the Q1 GAAP EPS calculation, the company is expecting an average diluted shares count of 124 million shares, and a GAAP tax rate of 48%.
Full Year FY09: The company today is raising the full year revenue guidance it provided on November 15, 2007, with revenue now expected to be approximately $1.030 billion to approximately $1.035 billion. The company is also initiating its earnings outlook for the full year, expecting GAAP diluted EPS to be in the range of approximately $0.32 to $0.33. GAAP EPS estimates include the effects of stock based compensation and the amortization of purchased intangibles. For the full fiscal year '09, stock based compensation expense is expected to be approximately $82 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 125 million shares, and a GAAP tax rate of 48%.
Quarterly Conference Call
Salesforce.com will host a conference call to discuss its fourth quarter fiscal 2008 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 34062469, until midnight (EST) March 7, 2008.
"Our fourth quarter and full-year results show that businesses are selecting the Force.com Platform-as-a-Service and cloud computing over failed client-server alternatives," said Marc Benioff, chairman and CEO, salesforce.com. "There's only one way to describe both the consolidation of the industry and the growing number of companies choosing innovation, not infrastructure: The End of Software."
Salesforce.com delivered the following results for the fourth quarter and full fiscal year 2008:
Revenue: Total Q4 revenue was $216.9 million, an increase of 50% on a year-over-year basis and an increase of 13% on a quarter-over-quarter basis. Subscription and support revenues were $196.5 million, an increase of 49% on a year-over-year basis and an increase of 11% on a quarter-over-quarter basis. Professional services and other revenues were $20.4 million, an increase of 68% on a year-over-year basis and an increase of 24% on a quarter-over-quarter basis.
For the full fiscal year 2008, the company reported revenue of approximately $748.7 million, an increase of 51% from the prior year. Subscription and support revenues were $680.6 million for the year, an increase of 51%, while professional services revenue rose 50% to finish at $68.1 million.
Earnings per Share: Q4 GAAP diluted earnings per share were approximately $0.06, including approximately $16 million in stock based compensation and approximately $1.3 million in amortization of purchased intangibles related to previously announced acquisitions. For the basis of Q4 GAAP EPS calculations, there was an average of approximately 124 million diluted shares outstanding during the quarter.
For the full year, GAAP diluted earnings per share were approximately $0.15, including approximately $55 million in stock based compensation and approximately $5.0 million in amortization of purchased intangibles related to previously announced acquisitions. For the basis of full year GAAP EPS calculations, there was an average of approximately 122 million diluted shares outstanding during the year.
Customers and Paying Subscribers: Net paying customers rose approximately 2,900 during the quarter and approximately 11,200 during the year to finish at approximately 41,000. Net paying subscribers rose to nearly 1.1 million, an increase of more than 450,000 year over year.
Cash: Cash from operations for the fiscal fourth quarter was a record at approximately $81 million, up 55% sequentially, and up 112% year-over-year. For the full year, operating cash flow totaled more than $204 million, an increase of 84% from the prior year. Total cash, cash equivalents and marketable securities finished the year at approximately $670 million, an increase of approximately $99 million from Q3 and up approximately $257 million from the year prior.
Deferred Revenue: Deferred revenue on the balance sheet as of January 31, 2008 was $481 million at year end, an increase of 69% on a year-over-year basis and 41% on a quarter-over-quarter basis.
As of February 27, 2008, salesforce.com is initiating guidance for its first quarter, fiscal year 2009. For its full fiscal year 2009, the company is raising its prior revenue guidance and initiating EPS guidance.
Q1 FY09: Revenue for the company's first fiscal quarter is projected to be in the range of approximately $233 million to approximately $235 million. GAAP diluted EPS is expected to be in the range of approximately $0.06 to $0.07. This estimate includes the effects of stock based compensation and the amortization of purchased intangibles. For the first fiscal quarter FY09, stock based compensation expense is expected to be approximately $17 million, and the expense associated with the amortization of purchased intangibles is now expected to be approximately $1.3 million. For purposes of the Q1 GAAP EPS calculation, the company is expecting an average diluted shares count of 124 million shares, and a GAAP tax rate of 48%.
Full Year FY09: The company today is raising the full year revenue guidance it provided on November 15, 2007, with revenue now expected to be approximately $1.030 billion to approximately $1.035 billion. The company is also initiating its earnings outlook for the full year, expecting GAAP diluted EPS to be in the range of approximately $0.32 to $0.33. GAAP EPS estimates include the effects of stock based compensation and the amortization of purchased intangibles. For the full fiscal year '09, stock based compensation expense is expected to be approximately $82 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 125 million shares, and a GAAP tax rate of 48%.
Quarterly Conference Call
Salesforce.com will host a conference call to discuss its fourth quarter fiscal 2008 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 34062469, until midnight (EST) March 7, 2008.
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