Thu, Aug. 20, 4:28 PM
- Salesforce (NYSE:CRM) is guiding for FQ3 revenue of $1.69B-$1.7B (+22%-23% Y/Y) and EPS of $0.18-$0.19 vs. a consensus of $1.68B and $0.18. Annual on-balance-sheet deferred growth is expected to be in the mid-20s range.
- FY16 (ends Jan. '16) guidance is for revenue of $6.6B-$6.625B (+23% Y/Y) and EPS of $0.70-$0.72 vs. a consensus of $6.55B and $0.71. Op. cash flow is expected to rise 24%-25% Y/Y.
- The deferred revenue balance rose 29% Y/Y in FQ2 to $3.03B, after growing 31% in FQ1. The unbilled deferred revenue balance rose 24% to $6.2B, after growing 25% in FQ1.
- Business/regional performance: Sales Cloud revenue +10% Y/Y to $671M. Service Cloud (customer support software) +40% to $445.2M. Marketing Cloud (online marketing/ad automation) +29% to $157.9M. Salesforce1 Platform/Other (cloud app platforms) +36% to $247.2M. The Americas were 74% of revenue, Europe 17%, and Asia-Pac 9%. Forex had a 4% impact on total revenue growth.
- Financials: Free cash flow (GAAP operating net cash - capex) rose 37% Y/Y to $239.5M, topping net income of $128.3M. Operating expenses (non-GAAP) rose 18% Y/Y to $1.06B. On a GAAP basis, sales/marketing spend totaled $793.7M, R&D $234.1M, and G&A $181.7M. Salesforce ended FQ2 with $2.07B in cash/investments, and $1.35B in debt.
- Shares have risen to $70.26 after hours. They fell 5.9% in regular trading as markets tumbled.
- FQ2 results, PR
Thu, Aug. 20, 4:07 PM
Wed, Aug. 19, 5:35 PM
Wed, May 20, 5:10 PM
- Salesforce's (NYSE:CRM) deferred revenue balance rose 31% Y/Y in FQ1 to $3.06B, nearly even with FQ4's 32%; mid-to-high 20s growth is expected in FQ2. The unbilled deferred revenue balance rose 25% to $6B; FQ4 growth was 27%.
- Thanks in part to the deferred revenue growth, free cash flow (GAAP net cash - capex) rose 60% Y/Y to $659.8M, far above non-GAAP net income of $108.3M. Capex totaled $71.1M (5% of revenue).
- Business performance: Sales Cloud subscription/support revenue +9% Y/Y to $630.4M; Service Cloud (customer support software) +38% to $407.7M; Marketing Cloud (ExactTarget) +29% to $143.2M; Salesforce1 platform/other (Heroku/Force.com) +36% to $224M. Professional services/other revenue +33% to $106M.
- Regional performance: Americas revenue (74% of total) +27% Y/Y to $1.11B. Europe +12% to $258.8M; Asia-Pac +15% to $137.2M. A strong dollar had a 4% impact on total revenue growth, and 16% and 12% impacts on Europe and Asia-Pac growth.
- Financials: Operating expenses (non-GAAP) rose 15% Y/Y to $987.7M, trailing revenue growth of 23%. On a GAAP basis, sales/marketing spend totaled $737M, R&D $222M, and G&A $176M. Salesforce ended FQ1 with $1.92B in cash/marketable securities, and $1.3B in debt.
- Shares have risen to $73.48 AH.
- Salesforce's results/guidance, PR
Wed, May 20, 4:10 PM
- Salesforce.com (NYSE:CRM): FQ1 EPS of $0.16 beats by $0.02.
- Revenue of $1.51B (+22.8% Y/Y) beats by $10M.
- Expects FQ2 revenue of $1.59B-$1.6B (+21% Y/Y) and EPS of $0.17-$0.18 vs. consensus of $1.59B and $0.17.
- Expects FY16 (ends Jan. '16) revenue of $6.52B-$6.55B (+21%-22% Y/Y) and EPS of $0.69-$0.71 vs. consensus of $6.51B and $0.69.
- Shares +3.4% AH.
- Press Release
Tue, May 19, 5:35 PM
Wed, Feb. 25, 4:24 PM
- Salesforce (NYSE:CRM) is guiding for FQ1 revenue of $1.485B-$1.505B and EPS of $0.13-$0.14, slightly unfavorable to a consensus of $1.5B and $0.15. FY16 (ends Jan. '16) guidance is for revenue of $6.475B-$6.52B (+20-21% Y/Y) and EPS of $0.67-$0.69 vs. a consensus of $6.5B and $0.69.
- Forex (i.e. a strong dollar) is expected to have a $175M-$200M impact on FY16 revenue. With many other enterprise IT firms having offered below-consensus guidance thanks at least partly to forex pressures, Salesforce's outlook is going over well.
- Also going over well: The deferred revenue balance rose 32% Y/Y in FQ4 to $3.32B, an acceleration from FQ3's 28% growth. The unbilled deferred revenue balance rose 27% Y/Y to $5.7B; FQ3 growth was 29%.
- The deferred revenue growth helped Salesforce generate free cash flow of $246.9M, +23% Y/Y and well above net income of $92.8M. GAAP operating expenses rose 15% Y/Y to $1.12B (compares with 26% revenue growth) - sales/marketing spend totaled $736.1M, R&D $206M, and G&A $181.4M.
- Americas revenue (73% of total revenue) rose 29% Y/Y to $1.06B. European revenue rose 21% to $255M, and Asia-Pac 17% to $134M.
- CRM +8.9% AH to $68.44, making new 52-week highs along the way.
- FQ4 results, PR
Wed, Feb. 25, 4:08 PM
Tue, Feb. 24, 5:35 PM
- AEGN, AGO, AMSG, ANIK, AR, AREX, ARI, AVGO, AWR, BLDP, BMRN, BWC, CEMP, CHDN, CHMT, CLUB, CLVS, CRM, CSGP, CWT, CXO, DRYS, DXCM, EAC, EHTH, ELGX, EPAM, ESRT, ESV, FARO, FOE, GMED, GPOR, GXP, HK, IL, KW, LB, LGCY, LHCG, MCHX, MDVN, MELI, MMLP, OAS, ORIG, PGTI, PLKI, PRSS, PVA, RGR, RIG, RIGP, SBY, SFM, STAA, SYNC, TEG, TTEC, WDAY, WLL, WMGI, WPX, WR
Fri, Jan. 30, 11:54 AM
- Salesforce (CRM -2.2%), ServiceNow (NOW -2.2%), Paylocity (PCTY -5.8%), Castlight (CSLT -4.1%), Cornerstone OnDemand (CSOD -3.6%), InContact (SAAS -2.2%), and Zendesk (ZEN -2.1%) are selling off after cloud ERP/HR/e-commerce software vendor NetSuite (N -11.7%) offered light Q1 and 2015 sales guidance to go with a Q4 beat. The Nasdaq is down 0.4%.
- As one would expect, NetSuite states forex has much to do with its guidance. On the CC (transcript), CFO Ronald Gill noted "the weighted average value of the foreign currencies in which we recognize international revenue has fallen more than 8% against the dollar." However, it's worth noting only 27% of NetSuite's Q4 revenue was international.
- NetSuite's Q4 numbers were solid: Subscription/support revenue grew 34%, and billings rose 34% to $201M (well above revenue of $157.9M). 54 customers were added for NetSuite's SuiteCommerce e-commerce software platform - CEO Zach Nelson humbly observes that was more than 3x the 17 customer adds rival Demandware (DWRE -1.6%) reported for Q3 (a seasonally weaker quarter).
- ServiceNow, the top player in the cloud IT service desk software market, provided above-consensus guidance on Wednesday.
Nov. 19, 2014, 4:24 PM
- Salesforce (NYSE:CRM) expects FQ4 revenue of $1.436B-$1.441B and EPS of $0.13-$0.14, below a consensus of $1.45B and $0.15.
- Preliminary FY16 (ends Jan. '16) revenue guidance of $6.45B-$6.5B (+20%-21% Y/Y) is below a $6.66B consensus. The guidance assumes a $125M-$150M forex headwind. Salesforce has a history of offering conservative initial full-year guidance.
- The deferred revenue balance rose 28% Y/Y in FQ3 to $2.22B, a slight slowdown from FQ2's 31% growth. The unbilled deferred revenue balance rose 29% Y/Y to $5.4B; 32% growth was seen in FQ2.
- Americas revenue (72% of total) +29% Y/Y to $995.3M; Europe +30% to $253M; Asia-Pac +21% to $135.4M.
- GAAP opex rose 18% Y/Y to $1.07B, trailing revenue growth of 29%. Sales/marketing spend rose 22% to $709.6M.
- Free cash flow was $49.1M, down 25% Y/Y and below net income of $93.6M.
- CRM -3.4% AH. FQ3 results, PR.
Nov. 19, 2014, 4:07 PM
Nov. 18, 2014, 5:35 PM
Aug. 29, 2014, 1:00 PM
- Low expectations and a high short interest (11.9M shares as of Aug. 15) are proving a good mix for Veeva (VEEV +18.1%) following its FQ2 beat and guidance hike. Several firms have raised their targets.
- Workday (WDAY +5.5%), which sold off yesterday (and took peers down with it) following its FQ2 report, is following Veeva higher. As are Veeva partner Salesforce (CRM +2.1%) and several other cloud software names. NOW +2.9%. CTCT +3.4%. JIVE +2.5%. CSOD +2%. ULTI +1.9%. MKTO +1.9%.
- "We like [Veeva's] momentum with new products, the pace of customer deployments, and view the second-half guidance as likely conservative," says Deutsche (Buy).
- Pac Crest (Outperform) likes the fact Veeva's billings and subscription revenue each rose over 60% Y/Y, and that its large deal activity also grew. It sees a $5B addressable market for life sciences CRM/content management software.
Aug. 28, 2014, 2:45 PM
- Workday (WDAY -4.7%) has received several target hikes after beating FQ2 estimates and upping its FY15 (ends Jan. '15) guidance. But there have also been some cautious notes focused on cloud HR/financial software giant's valuation.
- Citi observes Workday trades at 15x 2015E sales, and says it has trouble seeing upside catalysts at current levels. Goldman points out Workday is trading at 11x estimated enterprise value/billings even if its upside scenario plays out.
- Cantor (target raised to $121) sees several reasons to be bullish. Among them: The ramp of Workday's recently-launched recruiting product; the pending launch of Workday Student; an enterprise software upgrade cycle; strong international growth (echoes of Salesforce); and expected announcements at the November Workday Rising conference.
- Wedbush (target raised to $106) expects new big data/analytics products to be shown off at the conference. It also sees room for a fresh guidance hike in 3 months, though it thinks it might be smaller than yesterday's hike.
- Workday used its CC (transcript) to hike its FY15 billings guidance by $50M to $940M-$960M (above revenue guidance of $760M-$770M). FQ3 billings guidance is at $225M-$230M (above revenue guidance of $200M-$205M).
- Salesforce (CRM -2%) and several other cloud software names are following Workday lower. CSOD -3.3%. MKTO -3.3%. DWRE -2.2%. JIVE -1.6%. N -1.4%.
Aug. 22, 2014, 12:59 PM
- Salesforce's (NYSE:CRM) 33% Y/Y FQ2 billings growth was better than a Street forecast of 28%, says Nomura (Buy). The firm also estimates organic revenue growth was 28% (total growth was 38%), and notes op. cash flow grew 34% to $246M.
- Nomura sees Salesforce's Microsoft partnership yielding favorable press this fall, and also thinks Salesforce will announce a new cloud service, possibly by leveraging recently-acquired CRM analytics startup RelateIQ.
- BofA/Merrill (Buy) also talks up Salesforce's billings/cash flow growth, and points out the company's backlog ($7.35B) is now 24% above forward revenue estimates. FBR likes the fact op. margin (a recent concern, given heavy spending) rose 130 bps.
- Goldman (Conviction Buy) observes FQ3 guidance implies ~25% billings growth, which in turn points to a pickup in organic growth. "We believe CRM continues to be the preeminent SaaS vendor with significant runway ahead."
- On the CC (transcript), Salesforce mentioned it struck major deals with 3M and Safeway during FQ2, and expanded relationships with GM, P&G, and Yahoo (among others). The company also claimed European deal activity is picking up. Marc Benioff: "Europe tends to be a laggard when it comes to implementing new technology. And that has not escaped our cloud companies."
- Prior Salesforce earnings coverage
CRM vs. ETF Alternatives
Other News & PR