CRM giant Salesforce just released earnings this afternoon, beating Wall Street expectations. Non-GAAP diluted earnings per share was $0.43 for the quarter. Total Q4 revenue was $632 million, an increase of 38 percent on a year-over-year basis. Analysts expected earnings of $0.40 cents per share on revenue of $624 million.
“Salesforce.com’s 38 percent revenue growth in the fourth quarter was a spectacular finish to our fiscal year, a year in which we delivered 37 percent revenue growth and added nearly 2,500 employees, including nearly 2,000 in the U.S.,” said Salesforce CEO and founder Marc Benioff in a release. “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.”
In terms of net income, the company took a loss of $4 million for the quarter. Salesforce says that this included $70 million in stock-based compensation expense, approximately $20 million in amortization of purchased intangibles, and approximately $4 million in net non-cash interest expense related to the company’s convertible senior notes.
Subscription and support revenues were $594 million, an increase of 39 percent on a year-over-year basis. Professional services and other revenues were $38 million, an increase of 33 percent over last year.
For the full fiscal year 2012, the company reported revenue of $2.27 billion, an increase of 37 percent from the prior year. Subscription and support revenues were $2.13 billion, an increase of 37 percent on a year-over-year basis. Professional services and other revenues were $140 million, an increase of 32 percent on a year-over-year basis.
Cash generated from operations for the fiscal fourth quarter was $240 million, an increase of 45 percent on a year-over-year basis.
Revenue for the company’s first fiscal quarter is projected to be in the range of $673-678 million, an increase of 33-34 percent, year-over-year. As mentioned above, Salesforce is also raising its projected full fiscal year 2013 revenue to be in the range of $2.92-2.95 billion, an increase of 29-30 percent, year-over-year.
Salesforce is an enterprise cloud computing company that provides business software on a subscription basis. The company is best known for its on-demand Customer Relationship Management (CRM) solutions. Salesforce was founded in 1999 by former Oracle executive Marc Benioff, and went public in June 2004. Salesforce has been a pioneer in developing enterprise platforms through its innovative AppExchange directory of on-demand applications, and its Force.com “Platform as a Service” (PaaS) API for extending Salesforce.