Summary
Salesforce, Inc. (CRM) reported its first-quarter fiscal year 2013 results for the period ending April 30, 2012. The company experienced robust revenue growth of 38%, reaching $695.5 million, primarily driven by a 38% increase in subscription and support revenues. This growth was fueled by new customer acquisitions, upgrades from existing customers, and improved renewal rates. Despite strong revenue performance, the company reported a net loss of $19.5 million for the quarter, a significant decrease from the $0.5 million net income in the prior year's comparable quarter. This loss was influenced by increased operating expenses, particularly in marketing and sales (up 45% year-over-year) and research and development (up 45% year-over-year), reflecting continued investment in growth and expansion initiatives. The company also saw an increase in stock-based compensation expenses and amortization of purchased intangibles, contributing to the higher operating costs. Salesforce ended the quarter with a healthy liquidity position, including $1.7 billion in cash, cash equivalents, and marketable securities.
Financial Highlights
50 data points| Revenue | $695.47M |
| Cost of Revenue | $151.55M |
| Gross Profit | $543.92M |
| R&D Expenses | $94.78M |
| Operating Expenses | $566.16M |
| Operating Income | -$22.25M |
| Interest Expense | $6.37M |
| Net Income | -$19.48M |
| EPS (Basic) | $-0.04 |
| EPS (Diluted) | $-0.04 |
| Shares Outstanding (Basic) | 552.60M |
| Shares Outstanding (Diluted) | 552.60M |
Key Highlights
- 1Total revenues increased by 38% to $695.5 million for the three months ended April 30, 2012, compared to $504.4 million in the prior year period.
- 2Subscription and support revenues, the primary revenue driver, grew 38% year-over-year to $655.2 million.
- 3Operating expenses increased significantly, with Marketing and Sales expenses rising 45% to $369.8 million and Research and Development expenses up 45% to $94.8 million, indicating substantial investment in growth.
- 4The company reported a net loss of $19.5 million for the quarter, compared to a net income of $0.5 million in the same period last year.
- 5Cash, cash equivalents, and marketable securities totaled $1.7 billion at April 30, 2012, providing a strong liquidity position.
- 6The company completed the acquisition of Rypple (2Catalyze, Inc.) for approximately $50.6 million in cash during the quarter.
- 7Deferred revenue stood at $1.3 billion, indicating future revenue to be recognized.