The Channel logo

News

By | Kelly Fiveash 20th August 2010 11:03

Salesforce.com hoists fiscal year outlook as Q2 income slides

Parklife up in clouds

Salesforce.com jacked up its outlook for the year yesterday, after reporting second quarter sales that beat Wall Street expectations on revenues but which saw net income slide.

The company, which grabbed more than 5,000 new customers in the period ended 31 July, recorded Q2 revenue of $394m, up 25 per cent from $316m total sales in the same quarter last year.

Analysts had predicted Saleforce.com would record revenue of $384.8m for the quarter.

However, the cloud-based computer services giant saw no change in its Q2 earnings, excluding items, which came in flat at 29 cents per share.

The bottom line net income figure - including "items" - looked less rosy, with net income coming at $14.7m, well down on last year's $21.1m.

Salesforce.com, which has 82,000 customers on its books, raised its full fiscal year sales forecast to a range of $1.595bn to $1.6bn. The company also hoisted its non-GAAP earnings per share expectation to between $1.15 and $1.17.

The Marc Benioff-led firm forecast Q3 earnings of 30 cents a share to 31 cents a share on revenue of between $408m to $410m.

"We're delighted today to raise our full fiscal year 2011 revenue guidance," said Benioff.

"Our accelerating revenue growth in the second quarter, combined with an excellent quarter of new business worldwide, gives us confidence to raise our guidance to this exciting new milestone." ®

comment icon Read 1 comment on this article alert Send corrections

Opinion

Microsoft Surface bomb
Killer whale

Chris Mellor

Firm cites 'low demand' plus 'abusers'

Tim Worstall

Or why the reversal of globalisation ain't gonna 'appen

Features

No, silly... he was the fall guy for years of Finnish folly
Fraud image
Frodo and the Ring
Microsoft's strategy is to make Store apps popular. Good luck with that