- Record Revenue of $91.1M, up 67% year-over-year
- Record Cash Flow from Operations of $39.3 million, up 86% year-over-year
- Fully Diluted EPS rises to $0.05, up 67% year-over-year
- Paying Subscribers rise a record 48,000 to 399,000, up 76% year-over-year
- Customers rise a record 1,800 to 20,500, up 47% year-over-year
- Company Raises Full Year Fiscal 2007 Guidance
Salesforce.com (NYSE: CRM), the market and technology leader in on-demand customer relationship management, today announced results for its fiscal fourth quarter ended January 31, 2006.
"We were able to accomplish record revenue and subscriber growth while executing some of our most ambitious technology changes ever, including the AppExchange," said Marc Benioff, chairman and CEO of salesforce.com. "The on- demand model has never had more appeal, whether you're a customer ready to reap the benefits, or a legacy enterprise software company struggling to catch up."
Salesforce.com delivered the following results for the fourth quarter of fiscal year 2006:
Customers and Paying Subscribers: Paying subscribers rose a record 48,000 during the quarter and now total approximately 399,000. This ending total represents an increase of 76% from Q4 of the prior year, and an increase of 14% from the prior quarter. Customers rose 1,800 during the quarter and now total approximately 20,500, an increase of 47% from Q4 of the prior year, and an increase of 10% from the prior quarter.
Revenue: Total revenue was $91.1 million, an increase of 67% on a year- over-year basis and an increase of 10% on a quarter-to-quarter basis. Subscription and support revenues were $82.5 million, an increase of 67% on a year-over-year basis and an increase of 11% on a quarter-to-quarter basis. Professional services and other revenues were $8.6 million, an increase of 66% on a year-over-year basis and an increase of 4% on a quarter-to-quarter basis.
Earnings per Share: GAAP earnings per diluted share were $0.05, up 67% from Q4 of the prior year. Excluding the $0.06 tax benefit recorded during Q3, Q4 EPS of $0.05 was flat quarter-to-quarter. Average shares outstanding during Q4 were 121 million.
Cash: Cash from operations for the fiscal fourth quarter was $39.3 million, an increase of 86% on a year-over-year basis and an increase of 60% on a quarter-to-quarter basis.
Deferred Revenue: Deferred revenue as of January 31, 2006 was $169.2 million, an increase of 76% on a year-over-year basis and 33% on a quarter-to-quarter basis.
Salesforce.com is initiating guidance for its first quarter fiscal 2007, ending April 30, 2006, based on information as of February 22, 2006:
Q1 FY07 Revenue: Expected to be in the range of approximately $99 million to approximately $101 million.
Q1 FY07 Diluted EPS: Non-GAAP earnings per diluted share, excluding the effects of stock based compensation, are expected to be in the range of approximately $0.02 to approximately $0.04. This further assumes an estimated average of 122 million diluted shares outstanding and an estimated non-GAAP effective tax rate of 45%.
Salesforce.com is raising fiscal year 2007 guidance based on information as of February 22, 2006:
FY07 Revenue: Expected to be in the range of approximately $470 million to approximately $475 million.
FY07 Diluted EPS: Non-GAAP earnings per diluted share, excluding the effects of stock based compensation, are expected to be in the range of approximately $0.20 to $0.22. This further assumes an estimated average of 124 million diluted shares outstanding and an estimated non-GAAP effective tax rate of 45%.
Quarterly Conference Call
An archive of the webcast can be accessed through
www.salesforce.com/investor. Participants who choose to call in to the conference call can do so by dialing 913-981-4911 or 800-819-9193, passcode 9426730. A replay will be available until midnight Eastern Standard Time on March 3, 2006 and can be accessed by dialing, 719-457-0820 or 888-203-1112, passcode 9426730.
Please visit
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About salesforce.com
Salesforce.com is the market and technology leader in on-demand customer relationship management (CRM). The company's Salesforce suite of on-demand applications enables customers to manage and share all of their sales, support, marketing and partner information on-demand. AppExchange, salesforce.com's on-demand platform, allows customers and partners to build powerful new applications quickly and easily, customize and integrate the Salesforce suite to meet their unique business needs, and distribute and sell on-demand apps at www.appexchange.com. Customers can also take advantage of Successforce, salesforce.com's world-class training, support, consulting and best practices offerings.
As of January 31, 2006, salesforce.com manages customer information for approximately 20,500 customers and approximately 399,000 paying subscribers including Advanced Micro Devices (AMD), America Online (AOL), Avis/Budget Rent A Car (Cendant Rental Car Group), Dow Jones Newswires, Nokia, Polycom and SunTrust. Any unreleased services or features referenced in this or other press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase salesforce.com applications should make their purchase decisions based upon features that are currently available. Salesforce.com has headquarters in San Francisco, with offices in Europe and Asia, and trades on the New York Stock Exchange under the ticker symbol "CRM." For more information please visit
www.salesforce.com , or call 1-800-NO-SOFTWARE.
"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements about expected revenue and Non-GAAP earnings per share for the first fiscal quarter of 2007 and the full fiscal year 2007, the achievement of which involve risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.
The risks and uncertainties referred to above include - but are not limited to -- risks associated with possible fluctuations in our operating results and rate of growth, errors, interruptions or delays in our service or our Web hosting, our new business model, our history of operating losses, the possibility that we will not remain profitable, breach of our security measures, the emerging market in which we operate, our relatively limited operating history, our ability to hire, retain and motivate our employees and manage our growth, competition, our ability to continue to release and gain customer acceptance of new and improved versions of our service, customer and partner acceptance of the AppExchange, successful customer deployment and utilization of our services, unanticipated changes in our effective tax rate, fluctuations in the number of shares outstanding, the price of such shares, foreign currency exchange rates and interest rates.
Further information on these and other factors that could affect our financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time, including our Form 10-Q for the period ended October 31, 2005 and our Form 10-K for the fiscal year ended January 31, 2005. These documents are available on the SEC Filings section of the Investor Information section of our website at
www.salesforce.com/investor.
Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
NOTE: Salesforce.com is a registered trademark of, and AppExchange and Successforce are trademarks of, salesforce.com, Inc., San Francisco, California. Other names used may be trademarks of their respective owners.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding salesforce.com's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.
For further press information, please contact Maud Geerbex at LEWIS:
Tel: +31 (0)40 235 46 00
Fax: +31 (0)40 235 46 01
Email:
maudg@lewispr.comWebsite:
www.lewispr.com For other information, please contact Amanda Fennell, marketing manager, salesforce.com EMEA:
Tel: +44 870 351 4698
Email:
afennell@salesforce.comWebsite:
www.salesforce.com