Salesforce's guidance mixed; deferred revenue grows 31%

|By:, SA News Editor

Salesforce (NYSE:CRM) expects FQ3 revenue of $1.365B-$1.37B and EPS of $0.12-$0.13 vs. a consensus of $1.37B and $0.13. FY15 (ends Jan. '15) guidance is for revenue of $5.34B-$5.37B and EPS of $0.50-$0.52 vs. a consensus of $5.34B and $0.51.

The deferred revenue balance rose 31% Y/Y in FQ2 to $2.35B, a slight slowdown from FQ1's 34% growth. The unbilled deferred revenue balance grew 32% to $5B, after growing 33% in FQ1.

GAAP sales/marketing spend rose to 51% of revenue from 50% a year ago, and R&D spend to 16% from 15%. G&A spend fell to 13% from 16%. Free cash flow more than doubled Y/Y to $174.3M, and was well above net income of $85.7M.

Americas revenue (71% of total) +39% Y/Y, Europe (19% of total) +42%, Asia-Pac (10% of total) +25%.

Sales Cloud (core CRM software) revenue totaled $610.1M, Service Cloud (customer support software) $318.7M, Salesforce1 (cloud app platform) $181.4M, and ExactTarget (cloud marketing software) $122.4M.

CRM -0.8% AH. FQ2 results, PR