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 has launched a number of products over the past quarter including Desk.com. The company also acquired Model Metrics and Rypple as well.
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.
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