After the bell, Salesforce reported its fiscal second quarter financial results, including revenue of $1.32 billion and non-GAAP earnings per share of $0.13.
The company beat estimates in the fiscal 2015 quarter, as investors had expected it to earn $0.12 per share — excluding certain costs — on revenue of $1.29 billion. In its sequentially preceding quarter, Salesforce’s revenue totaled $1.23 billion. The company was essentially flat in regular trading. Salesforce’s shares are down in after-hours trading.
In the quarter, Salesforce’s revenue included $1.23 billion in “subscription and support” top line, and “professional services” intake of $86 million. The latter figure is up 58% from the year-ago quarter.
On a year-over-year basis, revenue at the firm was up 38%. Using generally accepted accounting principles, Salesforce reported a net loss of $61.09 million, or $0.10 per share. The company had a GAAP profit of $76.60 million. Investors could be somewhat skittish about its swing to negative profits.
Salesforce expects to lose, on a GAAP basis, $0.48 to $0.46 in its current fiscal year. Between twelve and thirteen cents of that deficit is expected for its fiscal third quarter. The majority of the difference between the company’s GAAP and non-GAAP earnings per share figures is the cost of share-based compensation. Many quickly growing technology companies discount that cost, and instead focus more heavily on the cash-based parts of their business.
Some investors find the dismissing of dilution-related costs as somewhat daring. Twitter is another company with heavy stock compensation expenses, and a large gap between in GAAP, and non-GAAP earnings information.
Salesforce ended the period with cash of $1.67 billion.