Salesforce.com Announces Record Fiscal Third Quarter Results * Revenue up 78% year-over-year to $82.7 million * GAAP Earnings per diluted share rise to $0.11, including a one time tax benefit of approximately $0.06 * Non-GAAP Earnings per diluted share rise to $0.05, up 150% from the prior year * Cash Flow from Operations is a record $24.6 million * Paying Subscribers rise a record 43,000 to 351,000, up 80% year-over-year and up 14% sequentially * Customers rise a record 1,800 to 18,700, up 50% year-over-year and up 11% sequentially SAN FRANCISCO, Nov. 16 /PRNewswire-FirstCall/ -- Salesforce.com (NYSE: CRM), the market and technology leader in on-demand customer relationship management, today announced results for its fiscal third quarter ended October 31, 2005.
'This has been a quarter of seismic shifts in our industry, and the strength of our numbers today clearly indicates that the market is moving toward salesforce.com,' said Marc Benioff, chairman and CEO of salesforce.com. 'During the quarter, we announced a game-changing application sharing strategy built around our AppExchange platform, witnessed the capitulation of a long time rival, and saw the dominant force in technology attempt to mimic our model in an effort to catch up.'
Salesforce.com delivered the following results for the third quarter of fiscal year 2006:
Revenue: Total revenue was $82.7 million, an increase of 78% on a year-over-year basis and an increase of 15% on a quarter-to-quarter basis. Subscription and support revenues were $74.4 million, an increase of 79% on a year-over-year basis and an increase of 13% on a quarter-to-quarter basis. Professional services and other revenues were $8.3 million, an increase of 69% on a year-over-year basis and an increase of 31% on a quarter-to-quarter basis.
GAAP Net Income: GAAP net income was $13.1 million.
Non-GAAP Net Income: Non-GAAP net income was $6.3 million, an increase of 194% on a year-over-year basis and an increase of 26% on a quarter- to-quarter basis.
GAAP Earnings per Share: GAAP earnings per diluted share were $0.11 and include a one time income tax benefit equal to $0.06 per diluted share. Average shares outstanding were 118.7 million.
Non-GAAP Earnings per Share: Non-GAAP earnings per diluted share, which exclude the one time income tax benefit, were $0.05, as compared to $0.02 per share for the prior year period, a 150% increase year-over- year and an increase of 25% on a quarter-to-quarter basis.
Customers and Paying Subscribers: During the third quarter, the company added approximately 1,800 customers and approximately 43,000 paying subscribers. As of the end of the fiscal third quarter, the company had approximately 18,700 customers and approximately 351,000 paying subscribers.
Cash: Cash from operations for the fiscal third quarter was $24.6 million, an increase of 87% on a year-over-year basis and an increase of 75% on a quarter-to-quarter basis.
Deferred Revenue: Deferred revenue as of October 31, 2005 was $127.1 million, an increase of 71% on a year-over-year basis and 8% on a quarter-to-quarter basis.
Salesforce.com is raising guidance for the fiscal year 2006, ending January 31, 2006, and initiating guidance for its fiscal fourth quarter 2006 based on information as of November 16, 2005:
FY06 Revenue: Expected to be in the range of approximately $307 million to approximately $309 million.
FY06 Diluted Non-GAAP EPS: Expected to be in the range of approximately $0.15 to approximately $0.17 based on an estimated average of 120 million diluted shares outstanding.
Q4 FY06 Revenue: Expected to be in the range of approximately $88 million to approximately $90 million.
Q4 FY06 Diluted GAAP EPS: Expected to be in the range of approximately $0.02 to approximately $0.04, based on an estimated average of 120 million diluted shares outstanding and an estimated effective tax rate of 20%.
Salesforce.com is providing, for the first time, fiscal year 2007 guidance based on information as of November 16, 2005:
FY07 Revenue: Expected to be in the range of approximately $460 million to approximately $465 million.
FY07 Diluted Non-GAAP EPS: Expected to be in the range of approximately $0.20 to $0.22, based on an estimated average of 123 million diluted shares outstanding and an estimated effective tax rate of 45%. These estimates exclude the impact of stock option expensing which will commence in Q1 FY07. The company will provide an update on the impact of this change at the end of its fiscal year.
More Nov 18th: Shares of Salesforce.com Inc. (NYSE:CRM) rebounded Thursday, climbing to an all-time high after a disappointing outlook from the software maker weighed on its stock the day before. Late Wednesday, Salesforce.com said a tax break helped its profit grow sixfold last quarter, with revenue nearly doubling as its subscriber base expanded 59 percent. But weak forecasts for the fourth quarter and full year sent shares sliding more than 1 percent in late trading. Symantec Corp. (Nasdaq: SYMC) and the Women's High Tech Coalition honored the recipients of the 2005 Women in Cyber Security Awards at a luncheon held in Washington, D.C. on Wednesday, Nov. 16, 2005. U.S. Rep. Mary Bono (R-Calif.) was recognized for her leadership in combating spyware through legislation she introduced that is under consideration in the United States House of Representatives.
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