Summary
Salesforce, Inc. (CRM) reported its financial results for the third quarter of fiscal year 2015, ending October 31, 2014. The company demonstrated strong revenue growth, with total revenues increasing by 29% year-over-year to $1.38 billion. This growth was primarily driven by subscription and support revenues, which rose 28% to $1.29 billion, indicating continued customer adoption and expansion of its cloud-based CRM services. The company also saw significant growth in professional services revenue. Despite a continued operating loss, the reported figures suggest healthy underlying business momentum and market acceptance of Salesforce's offerings. Key financial highlights include improved operating leverage, with the operating loss narrowing significantly from $97.9 million in the prior year period to $22.0 million. This improvement was driven by revenue growth outpacing the growth in operating expenses, particularly in marketing and sales, and a reduction in the percentage of revenue attributed to research and development and general and administrative expenses. The company also benefited from gains on property sales, contributing to a reduction in the net loss. Salesforce continues to invest in growth, with a strong cash position and a newly established revolving credit facility, positioning it to pursue future opportunities.
Financial Highlights
49 data points| Revenue | $1.38B |
| Cost of Revenue | $333.21M |
| Gross Profit | $1.05B |
| R&D Expenses | $195.46M |
| Operating Expenses | $1.07B |
| Operating Income | -$22.04M |
| Interest Expense | $17.68M |
| Net Income | -$38.92M |
| EPS (Basic) | $-0.06 |
| EPS (Diluted) | $-0.06 |
| Shares Outstanding (Basic) | 629.55M |
| Shares Outstanding (Diluted) | 629.55M |
Key Highlights
- 1Total revenues increased 29% year-over-year to $1.38 billion.
- 2Subscription and support revenues grew 28% to $1.29 billion, driven by new business and customer upgrades.
- 3Operating loss narrowed significantly to $22.0 million from $97.9 million in the prior year period.
- 4Marketing and sales expenses as a percentage of revenue decreased to 52% from 54% in the prior year period.
- 5The company reported gains on the sale of land and building improvements totaling $15.6 million.
- 6Cash, cash equivalents, and marketable securities totaled $1.8 billion, providing strong liquidity.
- 7A new $650 million revolving credit facility was established, with $300 million drawn to repay existing term loans.