Summary
Salesforce, Inc. reported its financial results for the second quarter of fiscal year 2016, ending July 31, 2015. The company demonstrated strong revenue growth, with total revenues increasing by 24% year-over-year to $1.63 billion. This growth was primarily driven by a 23% increase in subscription and support revenues, which now constitute 93% of total revenues. The company also saw a significant 32% increase in professional services and other revenues. While the company reported a net loss of $852,000 on a GAAP basis, this was a substantial improvement from the previous year's loss of $61.1 million. Non-GAAP net income, which excludes certain expenses like stock-based compensation and amortization of intangibles, showed a robust increase of 50% year-over-year to $128.3 million, translating to non-GAAP diluted EPS of $0.19. The company ended the quarter with a healthy cash and cash equivalents balance of $1.09 billion and significant marketable securities, indicating a strong liquidity position. Management remains focused on growth, with substantial investments in sales and marketing, research and development, and data center capacity to support future expansion.
Financial Highlights
48 data points| Revenue | $1.63B |
| Gross Profit | $1.23B |
| R&D Expenses | $234.10M |
| Operating Expenses | $1.21B |
| Operating Income | $19.82M |
| Interest Expense | $18.10M |
| Net Income | -$852K |
| Shares Outstanding (Basic) | 659.37M |
| Shares Outstanding (Diluted) | 659.37M |
Key Highlights
- 1Total revenues grew 24% year-over-year to $1.63 billion for the three months ended July 31, 2015.
- 2Subscription and support revenues increased by 23% to $1.52 billion, representing 93% of total revenues.
- 3Professional services and other revenues increased by 32% to $113.4 million.
- 4Net loss improved significantly to $0.85 million from a loss of $61.1 million in the prior year period.
- 5Non-GAAP net income increased by 50% to $128.3 million, with non-GAAP diluted EPS of $0.19.
- 6The company ended the quarter with $1.09 billion in cash and cash equivalents and $0.98 billion in marketable securities.
- 7Marketing and sales expenses represented 49% of total revenues, reflecting continued investment in customer acquisition and growth.