Summary
Salesforce.com, Inc. reported a net loss of $25.2 million for the third quarter of fiscal year 2016, compared to a net loss of $38.9 million in the prior year's third quarter. Total revenues increased by 24% to $1.71 billion, driven primarily by a 24% rise in subscription and support revenues. The company continues to invest heavily in marketing and sales, which represented 48% of total revenues, and research and development, indicating a strong focus on growth. Despite the net loss, operating income turned positive, reaching $43.4 million, a significant improvement from the prior year's operating loss of $22.0 million. This performance was bolstered by a gain on the sale of land and building improvements. The company also reported substantial increases in cash and cash equivalents, driven by strong operating cash flow, which grew to $117.9 million for the quarter. The company's balance sheet shows growth in key assets like cash and marketable securities, although accounts receivable decreased. Liabilities saw a reduction in total liabilities due to lower deferred revenue and the absence of borrowings on the revolving credit facility, which was fully paid down. Strategic investments increased significantly, indicating a focus on expanding its ecosystem. Overall, Salesforce demonstrated robust revenue growth and improved operational profitability, though the net loss persists due to ongoing investments and non-cash expenses.
Financial Highlights
48 data points| Revenue | $1.71B |
| Gross Profit | $1.29B |
| R&D Expenses | $239.21M |
| Operating Expenses | $1.24B |
| Operating Income | $43.43M |
| Interest Expense | $18.25M |
| Net Income | -$25.16M |
| EPS (Basic) | $-0.04 |
| EPS (Diluted) | $-0.04 |
| Shares Outstanding (Basic) | 664.13M |
| Shares Outstanding (Diluted) | 664.13M |
Key Highlights
- 1Total revenue increased by 24% year-over-year to $1.71 billion.
- 2Subscription and support revenue, the primary revenue driver, grew 24% to $1.60 billion.
- 3Operating income turned positive at $43.4 million, a significant improvement from a $22.0 million loss in the prior year's quarter.
- 4Net loss decreased to $25.2 million from $38.9 million in the prior year's quarter.
- 5Cash and cash equivalents and marketable securities increased to $2.3 billion.
- 6Operating cash flow for the nine months ended October 31, 2015, was $1.15 billion, up from $841.5 million in the prior year.