Enterprise cloud computing company Salesforce.com, Inc. (NYSE: CRM), issued its 4Q 2010 results Thursday, reporting double digit growth in revenue resulting from a 27% improvement in total customers for the year. Summary results from the company’s press release include:
- Raises FY12 Revenue Guidance to $2.03 – $2.05 Billion
- Record Quarterly Revenue of $457 Million, up 29% Year-Over-Year
- Record Full Year Revenue of $1.657 Billion, up 27% Year-Over-Year
- Q4 Operating Cash Flow of $166 Million, up 81% Year-Over-Year
- Full Year Operating Cash Flow of $459 Million, up 69% Year-Over-Year
- Deferred Revenue of $935 million, up 33% Year-Over-Year
- 5,100 Net New Customers in the Quarter
- Total Customers at 92,300 up 27% Year-Over-Year
Bloomberg noted the trend in enterprise computing is favouring CRM’s cloud strategy:
Chief Executive Officer Marc Benioff is taking advantage as more businesses shift to using cloud computing, which delivers software and data as a service over the Internet, saving on hardware and labor. Companies are also hiring sales employees and investing in technology to support them, including customer- relationship management software, analysts said.
“When people add sales and marketing headcount, which they tend to do coming out of a recession, they tend to add Salesforce.com,” Pat Walravens, an analyst at JMP Securities in San Francisco, said in an interview.
In reaction to the news, Midnight Trader wrote the following on Seeking Alpha:
[T]here’s a long opportunity in CRM on Friday and buyers should take notice.
CRM favors widening between the sessions when it records earnings-driven after-hours gains, which it has done in 10 of the 25 quarters we’ve followed over the last seven years. Of those 10, the stock has widened six times and reversed direction four times. It’s not jump out of your seat historical data, but it’s enough when combined with some consistent upside support in Thursday’s after-hours to look to play the positive momentum into Friday.
Covestor models that hold CRM as of end of day 2/24 – click through for more info on the models:
- Forbes 100 from Philip Dhingra
Sources:
“Salesforce.com Announces Fiscal Fourth Quarter and Full Year Results” Salesforce.com, 2/24/2011. http://www.salesforce.com/company/news-press/press-releases/2011/02/110224.jsp
“Salesforce.com Forecast Tops Estimates Amid Software Upgrades; Shares Gain” Aaron Ricadela. Bloomberg, 2/25/2011. https://www.bloomberg.com/news/2011-02-24/salesforce-com-forecast-tops-estimates-amid-software-upgrades-shares-gain.html
“Longs Looking to Take Salesforce.com Deeper Into the Cloud” Midnight Trader. SeekingAlpha, 2/24/2011. https://seekingalpha.com/article/254945-longs-looking-to-take-salesforce-com-deeper-into-the-cloud
