Seeking Alpha

Salesforce -2.3% AH. CFO retiring, top-line guidance healthy.

  • Along with its FQ4 results, Salesforce (CRM) announces CFO Graham Smith is retiring in March 2015. A search will begin for a successor.
  • Salesforce expects FQ1 revenue of $1.205B-$1.21B and EPS of $0.09-$0.10 vs. a consensus of $1.19B and $0.10. FY15 (ends Jan. '15) guidance is for revenue of $5.25B-$5.3B and EPS of $0.48-$0.50 vs. a consensus of $5.21B and $0.50.
  • The deferred revenue balance rose 35% Y/Y to $2.52B in FQ4 after growing at a 34% clip in FQ3. Unbilled deferred revenue rose 29% Y/Y to $4.5B after growing 40% in FQ3.
  • Aggressive spending continues to pressure margins: Opex rose 45% Y/Y to $975.5M (exceeded rev. growth of 38%), with sizable increases in sales/marketing (56% of revenue), R&D, and G&A.
  • Free cash flow fell 13% Y/Y to $201.4M, but (thanks to deferred revenue growth) was well above net income of $47M. For the whole of FY14, FCF was $576.4M.
  • FQ4 results, PR
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Comments (3)
  • Tufenk
    , contributor
    Comments (963) | Send Message
    Free cash flow, Hmmm.....
    28 Feb, 12:45 AM Reply Like
  • ReligiousWacko
    , contributor
    Comments (1126) | Send Message
    Cash flow is not a problem. They can issue more stock to increase cash flow!
    28 Feb, 02:26 PM Reply Like
  • Moonit Man
    , contributor
    Comment (1) | Send Message
    One of the great shorts of this particular "bubble blow off" circa 2014! Funny money accounting, a highly promotional CEO, and declining margins/free cash flow. Once "da boys" figure this one out it will get cut in half.....Hmmm is right!
    28 Feb, 04:42 AM Reply Like
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