Salesforce.com beats estimates with $957M in Q2 revenue
The San Francisco-headquartered company acknowledges that it got a big revenue boost this quarter thanks to its acquisition of ExactTarget.
Salesforce.com didn't have a problem surpassing analyst expectations with its second-quarter earnings report, published after the bell on Thursday.
The CRM giant reported a net income of $76.6 million, or 12 cents per share (statement). Non-GAAP earnings were nine cents per share on a revenue of $957 million, up 31 percent year-over-year.
Wall Street was expecting Salesforce to report second-quarter earnings of seven cents a share on revenue of $939.2 million.
The San Francisco-headquartered company acknowledged that it got a big revenue boost this quarter with thanks to its $2.5 billion acquisition of ExactTarget. That deal closed in July.
To further break down revenue figures, subscription and support revenues accounted for $903 million, up 31 percent annually. Professional services and other revenues totaled $54 million, up 23 percent year-over-year.
In prepared remarks, CEO Marc Benioff reflected briefly on the busy quarter, which included a surprising partnership with its number one frenemy Oracle:
Salesforce.com continues to be the fastest growing software company of its size with year-over-year growth of more than 30% in revenue, deferred revenue, and operating cash flow. I'm delighted to announce that just four years after delivering our first $1 billion revenue year, we are now poised to deliver our first $1 billion revenue quarter in the third quarter of fiscal 2014.
For the third quarter, Wall Street expects Salesforce to return with revenue of at least $1.04 billion and non-GAAP earnings of seven cents per share.
Salesforce expects Q3 revenue to fall within the range of $1.050 billion to $1.055 billion, which would be between 33 and 34 percent higher on an annual basis. Q3 earnings per share are expected to drop between eight and nine cents.
For the full fiscal year 2014, Salesforce said it is raising its outlook, now providing a revenue guidance range of $4.000 billion to $4.025 billion, up between 31 and 32 percent year-over-year, with non-GAAP earnings of 32 to 34 cents per share.
During the conference call on Thursday, Benioff projected a big milestone to be met by the third quarter.
Recalling that Salesforce's first billion-dollar revenue year was four years ago, Benioff predicted that the company will finally deliver $1 billion in quarterly revenue in the next three months.
He boasted that "no other enterprise software company of our size" is growing at the same rate.
Salesforce also has another notable event on the horizon: Dreamforce. Following the aforementioned acquisition of ExactTarget and its integration within Salesforce's Marketing Cloud, expect that unit to take center stage at some point.
Additionally, Benioff offered an ever-so-tiny sneak peek at what to expect at the cloud company's flagship event, which will include keynotes by Facebook chief operating officer Sheryl Sandberg and Yahoo chief executive officer Marissa Mayer.
Chart via Salesforce Investor Relations
Update, 2:45 p.m. PT: Add details and comments from CEO Marc Benioff during earnings conference call.
This story originally appeared as "Salesforce.com handily beats Q2 estimates; $957M in revenue, $0.09 EPS" on ZDNet.