Salesforce.com Announces Fiscal 2013 First Quarter Results

"Salesforce.com continues to be the fastest growing software company of its size," said Marc Benioff, Chairman and CEO, salesforce.com. "Last year we became the first enterprise cloud computing company to achieve $2 billion in revenue, and we're now poised to deliver the first ever $3 billion year in fiscal 2013."

Revenue: Total Q1 revenue was $695 million, an increase of 38% on a year-over-year basis. Subscription and support earnings were $655 million, an increase of 38% on a year-over-year basis. Professional services and other earnings were $40 million, an increase of 30% on a year-over-year basis.

Deferred Revenue: Deferred revenue on the balance sheet as of April 30, 2012 was $1.33 billion, an increase of 46% on a year-over-year basis. Current deferred revenue increased by 41% year-over-year to $1.26 billion, benefited partly by longer invoice durations. Long term deferred revenue increased by 264% year-over-year to $77 million. Unbilled deferred revenue, representing business in other words contracted nevertheless unbilled and off balance sheet, ended the first quarter at in broad outline $2.7 billion, up from roughly $2.2 billion at the end of fiscal 2012.

As of May 17, 2012, salesforce.com is initiating revenue and EPS guidance for its second quarter of fiscal year 2013. To boot, the company is raising its full fiscal year 2013 revenue and EPS guidance earlier provided on February 23, 2012.

Q2 FY13 Guidance: Revenue for the company's second fiscal quarter is projected to be in the range of $724 million to $728 million, an increase of 33% year-over-year.

Full Year FY13 Guidance: Revenue for the company's full fiscal year 2013 is projected to be in the range of $2.97 billion to $3.00 billion, an increase of 31% to 32% year-over-year.

With more than 100,000 clients, salesforce.com is the enterprise cloud computing company in other words leading the shift to the social enterprise. Social enterprises leverage social, mobile and open cloud technologies to put clients at the heart of their business. Based on salesforce.com's real-time, multitenant architecture, the company's platform and application services allow clients to:

The primary purpose of these non-GAAP measures is to provide supplemental information that may prove useful to investors who wish to consider the impact of certain non-cash items on the company's operating performance. Non-cash stock-based compensation, amortization of acquisition-related intangible assets, and the net amortization of debt discount on the company's convertible senior notes are being excluded from the company's FY13 financial results because the decisions which gave rise to these expenses were not made to increase revenue in a particular period, however were made for the company's long-term benefit over multiple periods. During strategic decisions, just as those to issue stock-based compensation, acquire a company, or issue convertible senior notes, are made to furthermore the company's long-term strategic objectives and impact the company's income statement pursuant to this agreement GAAP measures, these items affect multiple periods and management is not able to change or affect these items in any particular period. As such, supplementing GAAP disclosure with non-GAAP disclosure using the non-GAAP measures provides management with an additional view of operational performance by excluding expenses that are not directly related to performance in any particular period, and management uses both GAAP and non-GAAP measures when planning, monitoring, and evaluating the company's performance.

The risks and uncertainties referred to above include - nevertheless are not limited to - risks associated with possible fluctuations in the company's financial and operating results; the company's rate of growth and anticipated revenue run rate, including the company's ability to convert deferred revenue and unbilled deferred revenue into revenue and, as the case may be, cash flow, and the continued growth and ability to maintain deferred revenue and unbilled deferred revenue; errors, interruptions or delays in the company's service or the company's Web hosting; breaches of the company's security measures; the financial impact of any previous and future acquisitions; the nature of the company's business model; the company's ability to continue to release, and gain customer acceptance of, new and improved versions of the company's service; successful customer deployment and utilization of the company's existing and future services; changes in the company's sales cycle; competition; various financial aspects of the company's subscription model; unexpected increases in attrition or decreases in new business; the emerging markets in which we operate; unparalleled aspects of entering or expanding in international markets, the company's ability to hire, retain and motivate employees and manage the company's growth; changes in the company's customer base; technological developments; regulatory developments; litigation related to intellectual property and other matters, and any related claims, negotiations and settlements; unanticipated changes in the company's effective tax rate; fluctuations in the number of shares we have outstanding and the price of such shares; foreign currency exchange rates; collection of receivables; interest rates; the expenses associated with the company's real estate and office facilities space; and general developments in the economy, financial markets, and credit markets.