- Revenue Increases 82% to $46.4 million year over year
- Paying Subscribers Increase 81% to 195,000 year over year
- Customers Increase 62% to 12,500 year over year
- Net Income Increases 84% sequentially to $2.2 million
Salesforce.com (NYSE:CRM), the market and technology leader in on-demand customer relationship management, today announced results for its third fiscal quarter ended October 31, 2004.
"We are pleased with the continued momentum we are seeing in our customer and subscriber base," said Marc Benioff, chairman and CEO of salesforce.com. "The growing acceptance of the on-demand computing model is clear, from the smallest to the largest companies in the world. With our recent Winter05 release, we have set the stage to become the platform of choice for on-demand applications."
Salesforce.com delivered the following results for the third quarter of fiscal year 2005:
Revenue: Total revenue was $46.4 million, an increase of 82% on a year-over-year basis and an increase of 14% on a quarter-to-quarter basis. Subscription and support revenues were $41.5 million, an increase of 84% on a year-over-year basis and an increase of 15% on a quarter-to-quarter basis. Professional services and other revenues were $4.9 million, an increase of 66% on a year-over-year basis and an increase of 7% on a quarter-to-quarter basis.
Net Income: Net income was $2.2 million, a significant reversal from a loss of $100,000 in the year ago period, excluding the benefit of a one-time non-cash gain in the year ago period. As reported previously, in the fiscal third quarter of 2004, which ended October 31, 2003, the company entered into an agreement releasing it from future obligations associated with a lease of abandoned office space. As a result, the company recorded a one-time non-cash gain of $4.3 million in last year's third quarter, which was the result of a reversal of an accrued liability associated with the office space. Including the one-time gain, fiscal third quarter 2004 net income was $3.8 million. Fiscal third quarter 2005 net income grew 84% on a quarter-to-quarter basis.
Earnings per Share: Earnings per diluted share were $0.02, a significant increase from break-even in the year ago period, after excluding the benefit of the one-time, non-cash gain described above. Including the benefit of the one-time, non-cash $4.3 million gain, earnings per diluted share in the year ago period were $0.04.
Cash: Cash from operations for the fiscal third quarter was $13.2 million, an increase of 91% compared to the prior year period.
Deferred Revenue: Deferred revenue for the fiscal third quarter was $74.2 million, an increase of 116% on a year-over-year basis and 20% on a quarter-to-quarter basis.
Customers and Paying Subscribers: During the third quarter, the company added approximately 1,400 customers and approximately 27,000
paying subscribers. As of the end of the third fiscal quarter, the company had approximately 12,500 customers and 195,000 paying subscribers. The paying subscriber numbers exclude an aggregate of approximately 2,500 paying subscribers who are using our product but for which we have delayed revenue recognition until specific new technology for which customers contracted is completed.
Salesforce.com is raising its guidance for the fiscal year 2005, ending January 31, 2005 based on information as of November 17, 2004:
FY05 Revenue: Expected to be in the range of approximately $172 million to approximately $174 million, up from prior guidance of $165-170 million.
FY05 Diluted EPS: Expected to be in the range of approximately $0.04 to approximately $0.05 based on an estimated average of 110 million diluted shares and an effective tax rate of 13%. This represents an increase from prior guidance of $0.02 to $0.04.
Salesforce.com is providing, for the first time, full fiscal year 2006 guidance based on information as of November 17, 2004:
FY06 Revenue: Expected to be in the range of approximately $275 million to approximately $285 million.
FY06 Diluted EPS: Expected to be in the range of approximately $0.10 to approximately $0.12 based on an estimated average of 121 million diluted shares and an effective tax rate of 25%.
Click here for complete release including tables: www.salesforce.com