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10-QPeriod: Q2 FY2013

Salesforce, Inc. Quarterly Report for Q2 Ended Jul 31, 2012

Filed August 31, 2012For Securities:CRM

Summary

Salesforce.com, Inc. (CRM) reported its second-quarter fiscal year 2013 results for the period ending July 30, 2012, showing continued revenue growth. Total revenues increased by 34% year-over-year to $731.6 million, driven by a 35% increase in subscription and support revenues, which accounted for 94% of total revenue. Despite revenue growth, the company reported a net loss of $9.8 million for the quarter, a slight increase from the $4.3 million net loss in the prior year's comparable quarter. Operating expenses, particularly marketing and sales, and research and development, saw significant increases, contributing to the wider net loss. The company also highlighted strong cash flow from operations, indicating a healthy liquidity position with $1.8 billion in cash, cash equivalents, and marketable securities.

Financial Statements
Beta
Revenue$731.65M
Cost of Revenue$162.42M
Gross Profit$569.23M
R&D Expenses$99.44M
Operating Expenses$582.70M
Operating Income-$13.47M
Interest Expense$8.03M
Net Income-$9.83M
EPS (Basic)$-0.02
EPS (Diluted)$-0.02
Shares Outstanding (Basic)557.70M
Shares Outstanding (Diluted)557.70M

Key Highlights

  • 1Total revenues increased by 34% to $731.6 million for the three months ended July 31, 2012, compared to $546.0 million in the prior year period.
  • 2Subscription and support revenues grew by 35% to $687.5 million, representing 94% of total revenues.
  • 3The company reported a net loss of $9.8 million for the quarter, compared to a net loss of $4.3 million in the same period last year.
  • 4Operating expenses increased significantly, with Marketing and Sales up 34% and Research and Development up 35%, reflecting investments in growth.
  • 5Cash and cash equivalents and marketable securities totaled $1.8 billion at July 31, 2012, providing strong liquidity.
  • 6Net cash provided by operating activities was $136.2 million for the quarter, up from $82.9 million in the prior year period.

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