Stellar Set Of Numbers For Salesforce.com Inc. (NYSE:CRM)
The on demand CRM market leader Salesforce.com, Inc. (NYSE:CRM) announced its third quarter report yesterday. Commenting on the outcome from the operations for the quarter which ended on October 30 and his outlook for the coming fiscal, its Chairman and Chief Executive Marc Benioff has been quoted as saying, “Salesforce.com is the first enterprise cloud computing company to deliver a $1 billion quarter, with outstanding third quarter revenue growth at 36%. Given the strong customer response to our next generation social and mobile cloud technologies, I’m delighted to announce that we expect to deliver our first $5 billion year during our fiscal year 2015”.
Strong Revenue Growth
Salesforce.com, Inc. (NYSE:CRM) reported total revenue of $1.08 billion from its 3Q operations. Its a 36% jump from 3Q12. While the revenue surge is partly organic it has also benefited from the acquisition of company called ExactTarget (EXTG) which the firm closed out in July this year. While its main stream revenue came in from its subscription business its professional services practice too shoed impressive growth of 50% in comparison to 3Q12 and has come in at $72 million for the reporting quarter. The strong pick up in revenue inflow has led to a 30% increase in its cash flow. It reported a $138 million in new cash generation during 3Q.
Yet To Wipe Out Loss
In spite of the strong revenue growth, the firm is still struggling to turn the corner and become profitable. Its net loss for the 3Q was $0.21 per share and the loss is slightly lesser compared to previous sequential quarter. In another indicator of strong fundamentals, the firm has flagged out a super impressive $1.73 billion in deferred revenue which it expects to realize over the next few quarter. The firm also gave out aggressive forecast for its fourth quarter operations. In spite of impressive results, its shares ended 3.4% lower during trading yesterday.