Salesforce.com Announces Financial Results for Quarter
Salesforce.com today announced results for its second fiscal quarter, ended July 31, 2004.
“We are delighted to have delivered strong results during a difficult period for the software industry,” said Marc Benioff, chairman and CEO of salesforce.com. “Our numbers speak for the growing acceptance of the on demand computing model.”
Salesforce.com delivered the following results for the second quarter of fiscal year 2005:
— Revenue: Total revenue was $40.6 million, an increase of 88 percent compared to $21.6 million for the same period last year. Subscription and support revenue was $36.0 million, an increase of 84 percent compared to $19.6 million for the same period last year. Professional services and other revenues were $4.6 million, an increase of 125 percent compared to $2.0 million for the same period last year.
— Net income: Net income was $1.2 million, an increase of 859 percent compared to $122,000 for the same period last year. Earnings per diluted share were $0.01 compared to break even for the same period last year.
— Cash: Cash from operations for the fiscal second quarter was $14.9 million compared to $4.0 million for the same period last year, an increase of 275 percent year over year. This cash increase is in addition to the $113.8 million received as proceeds from the company’s IPO.
— Deferred revenue: Deferred revenue for the fiscal second quarter was $61.6 million compared to $29.4 million as of the end of the second quarter of fiscal year 2004, an increase of 109 percent year over year. This compares to deferred revenue of $52.3 million as of the end of the previous quarter, or 18 percent growth sequentially.
— Customers and paying subscribers: During the second quarter, the company added over 1,300 customers and approximately 21,000 paying subscribers. As of the end of the second quarter, the company had approximately 11,100 customers and approximately 168,000 paying subscribers.
Salesforce.com is raising its guidance for the fiscal year 2005, ending January 31, 2005, based on information as of August 19, 2004:
— Fiscal year 2005 revenue is expected to be in the range of $165.0 million to $170.0 million.
— Fiscal year 2005 earnings per diluted share are expected to be in the range of $0.02 to $0.04 based on an estimated average of 110 million diluted shares and an effective tax rate of 13 percent.
Salesforce.com also expects revenue for its third quarter of fiscal year 2005 to be in the range of $43.0 million to $45.0 million.
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