CRM Featured Article
May 22, 2008
Salesforce.com Q1 2008 Revenues Up 52 Percent
By David Sims
Salesforce.com (News - Alert) has announced results for its fiscal first quarter ended April 30, 2008, with first quarter revenues "up 52 percent year-over-year, and well above guidance," according to CEO Mark Benioff.
Total Q1 revenue was $247.6 million, an increase of 52 percent on a year-over-year basis and an increase of 14 percent on a quarter-over-quarter basis. Subscription and support revenues were $225.3 million, an increase of 53 percent on a year-over-year basis and an increase of 15 percent on a quarter-over-quarter basis.
Q1 GAAP diluted earnings per share were approximately $0.08, including approximately $18 million in stock based compensation and approximately $1.3 million in amortization of purchased intangibles related to previously announced acquisitions.
Net paying customers rose approximately 2,600 during the quarter to approximately 43,600. Compared with the year ago quarter, net paying customers have grown by approximately 11,300.
Cash from operations for the fiscal first quarter was approximately $84 million, up 128 percent year-over-year, up 4 percent from Q4, and a company record for the 3rd consecutive quarter. Total cash, cash equivalents and marketable securities finished the quarter at approximately $751 million, up about $303 million from the year prior.
Revenue for the company's second fiscal quarter is projected to be in the range of approximately $258 million to approximately $259 million. The company is raising the full year revenue guidance it provided on February 27, 2008, with revenue now expected to be approximately $1.060 billion to approximately $1.065 billion.
Earlier this month Salesforce.com previewed Salesforce Summer '08 at Dreamforce Europe in London.
The vendor's 26th generation release, Salesforce Summer '08 has new features for Salesforce Content and Salesforce Ideas, along with new CRM features in sales, marketing, customer service and partner management.
Company officials say the new generation makes more use of consumer Web technologies such as tagging, subscriptions and recommendations.
For Salesforce Content there'll be delivery to all 15 languages that Salesforce.com supports. Users will also be able to collaborate in Salesforce Content with their partners and customers in the Salesforce Partner Portal and Salesforce Customer Portal.
A new "Content Analytics" feature offers metrics to "determine the most frequently used content among sales reps, marketers and other users," company officials say.
What Salesforce officials call "the second pillar in Salesforce.com's collaboration applications" is Salesforce Ideas, an app letting customer, partner or employee communities post, discuss, and vote on ideas. There will be a feature called "Multiple Communities," which lets companies create multiple communities "in order to better organize and segment the ideas coming from different groups, and provide participants with a forum to engage with the specific communities that most apply to them."
David Sims is a contributing editor for TMCnet. To read more of David’s articles, please visit his columnist page. He also blogs for TMCnet here.
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