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Salesforce.com (NYSE:CRM) is expected to report Q1 earnings after the market close on Thursday, May 20, with a conference call scheduled for 5:00 pm ET.

Guidance

The consensus estimate is 30c for EPS and $367.86M for revenue, according to First Call. On the company's last earnings call in February, Benioff told analysts that a third of Salesforce's new business is from non-sales automation software, up from 25% the year prior. In the earnings call, CEO Marc Benioff will be expected to update that figure. He will also be asked to address issues raised in the patent infringement lawsuit Microsoft (NASDAQ:MSFT) filed Wednesday. Guidance for Q1 provided in February is for Q1 non-GAAP EPS of 29c-30c, on revenue of $365M-$367M.

Analyst Views

Broadpoint's research suggests Salesforce.com had a solid close to the quarter, highlighted by improved execution with larger enterprise transactions and strong momentum with Service Cloud. The firms billings estimate of $325M, or up 25% year-over-year, is higher than the consensus billings estimate of $319M. Broadpoint's subscription revenue estimate of $340.5M, up 16.3% Y/Y, is in-line with consensus. The firm anticipates solid FCF/share of 66c, which is above the consensus estimate of 63c. Broadpoint's EPS/revenue estimates for Q1 are: 32c/$367.4M. Looking forward: Although, Broadpoint anticipates a slight upward bias to FY11 estimates, they believe upside will be muted by the following factors: depreciation and ongoing uncertainly of the Euro, and Salesforce.com plans to invest aggressively in the integration/expansion of the recently acquired Jigsaw and the EPS dilution does not appear fully modeled in FY11 consensus estimates. Broadpoint expects management will maintain their previous FY11 non-GAAP EPS guidance of $1.17-$1.21 as the company accelerates growth investments. The also believe forex headwinds may prohibit meaningful increases to the company's previous FY11 revenue guidance of $1.531B-$1.550B. Broadpoints FY11 estimates are: $1.24 on $1.56B in revenue. Broadpoint continues to view Salesforce.com as the best pure play cloud computing investment opportunity and would be buyers on any weakness following the Q1 earnings call. :

Source: Earnings Preview: Salesforce.com