Salesforce Q1 Earnings: Revenue Up 24 Percent to $377M; Net Income Falls Slightly

Enterprise cloud SaaS giant Salesforce just reported Q1 earnings today, with revenue increasing by 24% year-over-year to $376.8 million. This has propelled the company past a $1.5 billion annual revenue run rate, says CEO Marc Benioff in a release.

Net Income fell to $17.7 million from $18.4 million a year ago. Operating cash flow grew to a record $143 million, up 46 percent year-over-year. Subscription and support revenues were $351 million, an increase of 24% on a year-over-year basis. Professional services and other revenues were $26 million, an increase of 13% on a year-over-year basis.

The company also added 4,800 net new customers during the quarter, also a new record. Currently, Salesforce has 77,300 customers, an increase of 30% since April of last year. Since April 30, 2009, the company has added approximately 18,000 net paying customers, an increase of roughly 30%.

Total cash, cash equivalents and marketable securities finished the quarter at $1.9 billion, an increase of approximately $918 million from the year prior including approximately $500 million in net proceeds from the company’s convertible senior note financing in January 2010.

The company just got slapped with a lawsuit by Microsoft, alleging that Salesforce is infringing on nine of Microsoft’s patents. The company also recently engaged in a partnership with VMware to launch VMforce, a enterprise Java Cloud platform to enable Java developers to build apps off of Force.com. And the company released its collaboration platform Chatter into private beta.