--First Enterprise Cloud Computing Company to Achieve Fiscal Year Revenue of One Billion Dollars -- Record Revenue of $290 Million, up 34% Year-Over-Year -- GAAP EPS of $0.11, up 83% Year-Over-Year -- Net Customers Increase 3,600 in the Quarter to 55,400 -- Net Paying Subscribers Increase 400K Year-Over-Year to Surpass 1.5 Million -- Operating Cash Flow of $76 Million for Quarter; $230 Million for Fiscal Year -- Total Cash and Marketable Securities of $883 Million, up $213 Million Year-Over-Year -- Company Updates FY10 Revenue Guidance to $1.30 - $1.33 BillionSAN FRANCISCO, Feb 25, 2009 /PRNewswire-FirstCall via COMTEX/ -- Salesforce.com (NYSE: CRM), the enterprise cloud computing company, today announced results for its fiscal fourth quarter and full fiscal year ended January 31, 2009.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050216/SFW105LOGO)
"Salesforce.com is proud to be the first billion dollar cloud computing company," said Marc Benioff, chairman and CEO, salesforce.com. "At a time when capital is precious, big-ticket software purchases just don't make sense."
Salesforce.com delivered the following results for the fourth quarter and full fiscal year 2009:
Revenue: Total Q4 revenue was $289.6 million, an increase of 34% on a year-over-year basis and an increase of 5% on a quarter-over-quarter basis. Subscription and support revenues were $266.1 million, an increase of 35% on a year-over-year basis and an increase of 5% on a quarter-over-quarter basis. Professional services and other revenues were $23.5 million, an increase of 15% on a year-over-year basis and an increase of 2% on a quarter-over-quarter basis.
For the full fiscal year 2009, the company reported revenue of approximately $1.077 billion, an increase of 44% from the prior year. Subscription and support revenues were $984.6 million for the year, an increase of 45%, while professional services revenue rose 35% to $92.2 million.
Earnings per Share: Q4 GAAP diluted earnings per share were approximately $0.11, including approximately $21.1 million in stock based compensation expense and approximately $2.9 million in amortization of purchased intangibles related to previously announced acquisitions. For purposes of the Q4 GAAP EPS calculations, there was an average of approximately 125 million diluted shares outstanding during the quarter.
For the full year, GAAP diluted earnings per share rose approximately 130% year-over-year to $0.35, including approximately $77.4 million in stock based compensation and approximately $8.0 million in amortization of purchased intangibles related to previously announced acquisitions. For purposes of the GAAP EPS calculations, there was an average of approximately 125 million diluted shares outstanding during the year.
Customers and Paying Subscribers: Net paying customers rose approximately 3,600 during the quarter and approximately 14,400 during the year to finish at approximately 55,400. Net paying subscribers rose to greater than 1.5 million, an increase of approximately 400,000 from the prior fiscal year end.
Cash: Cash from operations for the fiscal fourth quarter was approximately $76 million, up from $17 million in the third quarter, and down 7% year-over-year. For the full year, operating cash flow totaled $230 million, an increase of 12% from the prior year. Total cash, cash equivalents and marketable securities finished the year at approximately $883 million, an increase of approximately $78 million from Q3 and approximately $213 million from the prior fiscal year end.
Deferred Revenue: Deferred revenue on the balance sheet as of January 31, 2009 was $594 million, an increase of 24% on a year-over-year basis and 27% on a quarter-over-quarter basis.
As of February 25, 2009, salesforce.com is initiating guidance for its first quarter, fiscal year 2010. For its full fiscal year 2010, the company is updating its prior revenue guidance and initiating EPS guidance.
Q1 FY10: Revenue for the company's first fiscal quarter is projected to be in the range of approximately $304 million to approximately $305 million. GAAP diluted EPS is expected to be in the range of approximately $0.10 to approximately $0.11. Stock based compensation expense is expected to be approximately $22 million, and amortization of purchased intangibles is expected to be approximately $2.6 million. For purposes of the Q1 GAAP EPS calculation, the company is expecting an average diluted shares count of 126 million shares, a GAAP tax rate of approximately 43%, and a minority interest expense of approximately $200,000.
Full Year FY10: The company today is updating the full year revenue guidance it provided on November 20, 2008, with revenue now expected to be approximately $1.30 billion to approximately $1.33 billion. The company is also initiating its earnings outlook for the full year, expecting GAAP diluted EPS to be in the range of approximately $0.54 to approximately $0.55. Stock based compensation expense is expected to be approximately $91 million, and amortization of purchased intangibles is currently expected to be approximately $9.3 million. For purposes of the full fiscal year 2010 GAAP EPS calculation, the company is expecting an average diluted shares count of 128 million shares, a GAAP tax rate of approximately 43%, and a minority interest expense of approximately $1 million.
Quarterly Conference Call
Salesforce.com will host a conference call to discuss its fourth quarter fiscal 2009 results at 2:00 p.m. Pacific Standard Time today. A live audio webcast of the conference call, together with detailed financial information, can be accessed through the company's Investor Relations Web site at http://www.salesforce.com/investor. In addition, an archive of the webcast can be accessed through the same link. Participants who choose to call in to the conference call can do so by dialing domestically 866-901-SFDC or 866-901-7332 and internationally 706-902-1764. A replay will be available at (800) 642-1687 or (706) 645-9291, passcode 84582465, until midnight (EST) March 13, 2009.
About salesforce.com
Salesforce.com is the enterprise cloud computing company. The company's portfolio of SaaS applications, including its award-winning CRM offering, available at http://www.salesforce.com/products/, has revolutionized the ways that customers manage and share business information over the Internet. The company's Force.com PaaS enables customers, developers and partners to build powerful on-demand applications that deliver the benefits of multi-tenancy across the enterprise. Applications built on the Force.com platform, available at http://www.force.com/, can be easily shared, exchanged and installed with a few simple clicks via salesforce.com's Force.com AppExchange marketplace available at http://www.salesforce.com/appexchange/.
As of January 31, 2009, salesforce.com manages customer information for approximately 55,400 customers including Allianz Commercial, Dell, Dow Jones Newswires, Japan Post, Kaiser Permanente, KONE, and SunTrust Banks.
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 http://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 GAAP earnings per share for the first fiscal quarter of 2010 and for the full fiscal year 2010, and our expected tax rate, stock based compensation expense, amortization rate, reduction in minority interest expense, and shares outstanding, the achievement of which involve risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove 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 financial and operating results, rate of growth and anticipated revenue run rate; errors, interruptions or delays in our service or our Web hosting; breaches of our security measures; the financial impact of the acquisition of InStranet and any future acquisitions; the nature of our business model; our ability to continue to release, and gain customer acceptance of, new and improved versions of our service; successful customer deployment and utilization of our existing and future services; competition; various financial aspects of our subscription model; the emerging market in which we operate; our ability to hire, retain and motivate our employees and manage our growth; changes in our customer base; technological developments; regulatory developments; unanticipated changes in our effective tax rate; and fluctuations in the number of shares we have outstanding, the price of such shares, foreign currency exchange rates, interest rates, and general developments in the economy, financial markets, and credit markets.
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 Form 10-Q for the quarter ended October 31, 2008 and our Form 10-K that will be filed for the fiscal year ended January 31, 2009. 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.
Copyright (c) 2009 salesforce.com, inc. All rights reserved. Salesforce and the "no software" logo are registered trademarks of salesforce.com, inc., and salesforce.com owns other registered and unregistered trademarks. Other names used herein may be trademarks of their respective owners.
salesforce.com, inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Three Months Ended Fiscal Year Ended
January 31, January 31,
2009 2008 2009 2008
---- ---- ---- ----
Revenues:
Subscription and support $266,110 $196,517 $984,574 $680,581
Professional services and
other 23,473 20,389 92,195 68,119
------ ------ ------ ------
Total revenues 289,583 216,906 1,076,769 748,700
Cost of revenues (1):
Subscription and support 35,280 24,822 127,082 91,268
Professional services and
other 23,454 21,909 93,389 80,323
------ ------ ------ ------
Total cost of revenues 58,734 46,731 220,471 171,591
Gross profit 230,849 170,175 856,298 577,109
Operating expenses (1):
Research and development 29,460 17,703 99,530 63,812
Marketing and sales 144,483 106,123 534,413 376,480
General and administrative 40,816 35,619 158,613 116,508
------ ------ ------- -------
Total operating expenses 214,759 159,445 792,556 556,800
Income from operations 16,090 10,730 63,742 20,309
Interest, net 5,397 7,315 22,667 24,493
Gain on sale of investment - - - 1,272
Other income (expense) 252 (595) (817) 139
--- ---- ---- ---
Income before provision for
income taxes and minority
interest 21,739 17,450 85,592 46,213
Provision for income taxes (7,864) (8,296) (37,557) (23,385)
------ ------ ------- -------
Income before minority interest 13,875 9,154 48,035 22,828
Minority interest in
consolidated joint venture (122) (1,775) (4,607) (4,472)
---- ------ ------ ------
Net income $13,753 $7,379 $43,428 $18,356
======= ====== ======= =======
Basic net income per share $0.11 $0.06 $0.36 $0.16
Diluted net income per share $0.11 $0.06 $0.35 $0.15
Shares used in computing
basic net income per share 122,428 118,757 121,183 116,840
Shares used in computing
diluted net income per share 124,533 123,680 125,228 122,422
-----------------------------
(1) Amounts include stock-based
expenses, as follows:
Cost of revenues $2,902 $2,173 $11,051 $7,926
Research and development 3,000 1,864 9,852 6,336
Marketing and sales 9,923 7,226 36,028 25,423
General and administrative 5,316 4,323 20,435 15,522
----- ----- ------ ------
Total stock-based
expenses $21,141 $15,586 $77,366 $55,207
======= ======= ======= =======
salesforce.com, inc.
Condensed Consolidated Statements of Operations
As a percentage of total revenues:
(Unaudited)
Three Months Fiscal Year
Ended Ended
January 31, January 31,
2009 2008 2009 2008
---- ---- ---- ----
Revenues:
Subscription and support 92% 91% 91% 91%
Professional services and other 8 9 9 9
--- --- --- ---
Total revenues 100 100 100 100
Cost of revenues:
Subscription and support 12 11 12 12
Professional services and other 8 11 8 11
--- --- --- ---
Total cost of revenues 20 22 20 23
Gross profit 80 78 80 77
Operating expenses:
Research and development 10 8 9 8
Marketing and sales 50 49 50 50
General and administrative 14 16 15 16
--- --- --- ---
Total operating expenses 74 73 74 74
Income from operations 6 5 6 3
Interest, net 2 3 2 3
Gain on sale of investment 0 0 0 0
Other income (expense) 0 0 0 0
--- --- --- ---
Income before provision for income
taxes and minority interest 8 8 8 6
Provision for income taxes (3) (4) (4) (3)
--- --- --- ---
Income before minority interest 5 4 4 3
Minority interest in consolidated joint
venture 0 (1) 0 (1)
--- --- --- ---
Net income 5% 3% 4% 2%
=== === === ===
-----------------------------
Stock-based expenses as a percentage of
total revenues, as follows:
Cost of revenues 1% 1% 1% 1%
Research and development 1 1 1 1
Marketing and sales 3 3 3 3
General and administrative 2 2 2 2
--- --- --- ---
Total stock-based expenses 7% 7% 7% 7%
=== === === ===
salesforce.com, inc.
Condensed Consolidated Balance Sheets
(in thousands)
January 31, January 31,
2009 2008
---- ----
(unaudited)
-----------
Assets
Current assets:
Cash and cash equivalents $483,834 $279,095
Short-term marketable securities 213,769 171,748
Accounts receivable, net 266,555 220,061
Deferred commissions 39,384 35,679
Deferred income taxes 31,900 7,173
Prepaid expenses and other current assets 33,115 27,055
------ ------
Total current assets 1,068,557 740,811
Marketable securities, noncurrent 184,962 218,957
Fixed assets, net 77,027 41,380
Deferred commissions, noncurrent 17,699 16,435
Deferred income taxes, noncurrent 26,589 26,512
Capitalized software, net 29,989 23,061
Goodwill 44,872 8,556
Other assets 30,127 13,881
------ ------
Total assets $1,479,822 $1,089,593
========== ==========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $16,379 $7,478
Accrued expenses and other current
liabilities 163,205 125,996
Income taxes payable 3,619 3,622
Deferred revenue 583,763 468,821
------- -------
Total current liabilities 766,966 605,917
Income taxes payable, noncurrent 12,490 8,465
Long-term lease liabilities and other 7,616 2,136
Deferred revenue, noncurrent 10,263 12,073
Minority interest 10,703 8,943
------ -----
Total liabilities 808,038 637,534
Stockholders' equity:
Common stock 123 119
Additional paid-in capital 648,724 471,802
Accumulated other comprehensive loss (2,905) (2,276)
Retained earnings (deficit) 25,842 (17,586)
------ -------
Total stockholders' equity 671,784 452,059
------- -------
Total liabilities and stockholders'
equity $1,479,822 $1,089,593
========== ==========
salesforce.com, inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Three Months Ended Fiscal Year Ended
January 31, January 31,
2009 2008 2009 2008
---- ---- ---- ----
Operating activities:
Net income $13,753 $7,379 $43,428 $18,356
Adjustments to reconcile net
income to net cash provided by
operating activities:
Gain on sale of investment 0 0 0 (1,272)
Loss (gain) on securities (269) 0 1,783 0
Minority interest 122 1,775 4,607 4,472
Depreciation and amortization 11,033 6,568 35,971 24,219
Amortization of deferred
commissions 15,318 12,468 58,732 42,195
Change in deferred income tax
valuation allowance 0 (970) 0 (970)
Expenses related to stock-based
awards 21,141 15,586 77,366 55,207
Excess tax benefits from
employee stock plans (12,350) (7,474) (54,597) (31,978)
Changes in assets and
liabilities 26,781 45,461 62,267 94,046
------ ------ ------ ------
Net cash provided by
operating activities 75,529 80,793 229,557 204,275
------ ------ ------- -------
Investing activities:
Business combination, net of cash
acquired (563) 0 (27,907) 0
Purchase of subsidiary stock (4,929) 0 (21,622) 0
Changes in marketable securities 28,432 22,271 (10,409) (60,816)
Capital expenditures (12,232) (8,369) (61,059) (43,552)
Proceeds from sale of investment 0 0 0 1,659
--- --- --- -----
Net cash provided by (used in)
investing activities 10,708 13,902 (120,997) (102,709)
------ ------ -------- --------
Financing activities:
Proceeds from the exercise of
stock options 2,706 16,620 43,311 60,910
Excess tax benefits from employee
stock plans 12,350 7,474 54,597 31,978
Principal payments on capital lease
obligations (706) (6) (997) (175)
---- --- ---- ----
Net cash provided by
financing activities 14,350 24,088 96,911 92,713
------ ------ ------ ------
Effect of exchange rate changes 933 (449) (732) (1,792)
--- ---- ---- ------
Net increase in cash and cash
equivalents 101,520 118,334 204,739 192,487
Cash and cash equivalents,
beginning of period 382,314 160,761 279,095 86,608
------- ------- ------- ------
Cash and cash equivalents,
end of period $483,834 $279,095 $483,834 $279,095
======== ======== ======== ========
salesforce.com, inc.
Additional Metrics
(Unaudited)
Jan 31, Oct 31, Jul 31, Apr 30, Jan 31, Oct 31,
2009 2008 2008 2008 2008 2007
---- ---- ---- ---- ---- ----
Full Time
Equivalent
Headcount 3,566 3,318 3,046 2,864 2,606 2,461
Financial data
(in thousands):
Cash, cash
equivalents
and
marketable
securities $882,565 $804,606 $823,417 $750,633 $669,800 $571,003
Deferred
revenue,
current
and
non-current $594,026 $469,534 $479,546 $470,297 $480,894 $340,808
Three Months Ended Fiscal Year Ended
January 31, January 31,
2009 2008 2009 2008
---- ---- ---- ----
Revenues by geography
(in thousands):
Americas $209,419 $158,499 $776,495 $557,976
Europe 48,088 38,396 190,685 127,010
Asia Pacific 32,076 20,011 109,589 63,714
------ ------ ------- ------
$289,583 $216,906 $1,076,769 $748,700
======== ======== ========== ========
As a percentage of
total revenues:
Revenues by geography:
Americas 72% 73% 72% 75%
Europe 17 18 18 17
Asia Pacific 11 9 10 8
--- --- --- ---
100% 100% 100% 100%
=== === === ===
SOURCE salesforce.com
http://www.salesforce.com