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salesforce.com inc. Reports Operating Results (10-Q)

November 28, 2012 | About:
10qk

10qk

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salesforce.com inc. (CRM) filed Quarterly Report for the period ended 2012-10-31.

Salesforce.com, Inc. has a market cap of $22.16 billion; its shares were traded at around $157.86 with and P/S ratio of 9.8. Salesforce.com, Inc. had an annual average earning growth of 43.7% over the past 5 years.
This is the annual revenues and earnings per share of CRM over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of CRM.


Highlight of Business Operations:

Total revenues were $788.4 million for the three months ended October 31, 2012, compared to $584.3 million during the same period a year ago, an increase of $204.1 million, or 35 percent. Subscription and support revenues were $740.6 million, or 94 percent of total revenues, for the three months ended October 31, 2012, compared to $549.2 million, or 94 percent of total revenues, during the same period a year ago. The increase in subscription and support revenues was due primarily to new customers, upgrades and additional subscriptions from existing customers and improved renewal rates as compared to a year ago. The price per user per month for our three primary offerings, Professional Edition, Enterprise Edition and Unlimited Edition, in the quarter ended October 31, 2012 has generally remained consistent relative to prior periods. Professional services and other revenues were $47.8 million, or six percent of total revenues, for the three months ended October 31, 2012, compared to $35.1 million, or six percent of total revenues, for the same period a year ago. The increase in professional services and other revenues was due primarily to the higher demand for services from an increased number of customers.

Cost of revenues was $186.2 million, or 24 percent of total revenues, for the three months ended October 31, 2012, compared to $128.6 million, or 22 percent of total revenues, during the same period a year ago, an increase of $57.7 million. The increase in absolute dollars was primarily due to an increase of $19.6 million in employee-related costs, an increase of $5.2 million in stock-based expenses, an increase of $11.4 million in service delivery costs, primarily due to our efforts to increase data center capacity, an increase of $11.1 million in depreciation and amortization expenses, $5.8 million of which related to the amortization of purchased intangible assets and an increase of $4.4 million in allocated overhead. We have increased our headcount since October 31, 2011 to meet the higher demand for services from our customers. A majority of the increase in headcount was due to the acquisitions.

Marketing and sales expenses were $428.5 million, or 54 percent of total revenues, for the three months ended October 31, 2012, compared to $304.6 million, or 52 percent of total revenues, during the same period a year ago, an increase of $123.9 million. The increase in absolute dollars was primarily due to increases of $74.8 million in employee-related costs, including amortization of deferred commissions, $26.2 million in stock-based expenses, $10.2 million in advertising, marketing and event costs, $7.2 million in allocated overhead and $2.2 million in depreciation and amortization expenses, $2.0 million of which related to the amortization of purchased intangible assets. Our marketing and sales headcount increased by 32 percent since October 31, 2011 as we hired additional sales personnel to focus on adding new customers and increasing penetration within our existing customer base. Some of the increase in headcount was due to acquired businesses.

Total revenues were $2.2 billion for the nine months ended October 31, 2012, compared to $1.6 billion during the same period a year ago, an increase of $580.9 million, or 36 percent. Subscription and support revenues were $2.1 billion, or 94 percent of total revenues, for the nine months ended October 31, 2012, compared to $1.5 billion, or 94 percent of total revenues, during the same period a year ago. The increase in subscription and support revenues was due primarily to new customers, upgrades and additional subscriptions from existing customers and improved renewal rates as compared to a year ago. The price per user per month for our three primary offerings, Professional Edition, Enterprise Edition and Unlimited Edition, in the nine months ended October 31, 2012 has remained substantially consistent relative to prior periods. Professional services and other revenues were $132.2 million, or six percent of total revenues, for the nine months ended October 31, 2012, compared to $102.7 million, or six percent of total revenues, for the same period a year ago. The increase in professional services and other revenues was due primarily to the higher demand for services from an increased number of customers.

Cost of revenues was $500.2 million, or 23 percent of total revenues, for the nine months ended October 31, 2012, compared to $352.5 million, or 22 percent of total revenues, during the same period a year ago, an increase of $147.7 million. The increase in absolute dollars was primarily due to an increase of $57.3 million in employee-related costs, an increase of $26.7 million in service delivery costs, primarily due to our efforts in increasing data center capacity, an increase of $31.2 million in depreciation and amortization expenses, $15.4 million of which related to the amortization of acquired developed technology, an increase of $10.4 million in allocated overhead and an increase of $12.3 million in stock-based expenses. We have increased our headcount since October 31, 2011 to meet the higher demand for services from our customers. A majority of the increase in headcount was due to the acquisitions during the nine months ended October 31, 2012. The increase in professional services headcount due to acquisitions resulted in the cost of professional services and other revenues to be in excess of the related revenue for the nine months ended October 31, 2012 by $6.6 million.

Read the The complete Report

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