Salesforce.com reaches record quarterly revenues of $290 million despite the recession, and marks more than $1 billion in revenue for the entire year, according to financial results for its fiscal fourth quarter ended Jan. 31. The cloud computing CRM specialist posted net profits of $13.75 million for its fourth quarter and revenues of $1.077 billion for the full fiscal year.
Bucking the trend of falling revenues from many in the
technology sector, cloud computing powerhouse Salesforce.com saw
a 34 percent jump in revenue to $290 million for its fiscal fourth
quarter, which ended Jan. 31.
The cloud-based CRM specialist announced results for its fiscal
fourth quarter and full fiscal year on Feb. 25, noting the $290 million
represented record quarterly revenues for the company. Subscription and
support revenues were $266 million, an increase of 35 percent over the
same period last year. And professional services and other revenues
were $23.5 million, an increase of 15 percent over the same period a
year ago.
Meanwhile, the company posted net profits of $13.75 million for its
fourth quarter and revenues of $1.077 billion for the full fiscal year.
"Salesforce.com is proud to be the first billion dollar cloud
computing company," said Marc Benioff, chairman and CEO,
Salesforce.com, in a statement. "At a time when capital is
precious, big-ticket software purchases just don't make sense."
Salesforce.com officials also said the amount of net paying
customers the company has rose approximately 3,600 during the fourth
quarter and approximately 14,400 during the year to finish at
approximately 55,400. Net paying subscribers rose to greater than 1.5
million, an increase of approximately 400,000 from the prior fiscal
year end.
The positive quarterly results help bear out Salesforce.com's contention that the
departure of former president and chief strategy officer, Steve Cakebread,
and others would have no impact on the company. Indeed, Salesforce.com
officials say with the recession, companies that deliver SAAS (software
as a service) will tend to do better than pure software companies
because SAAS providers eliminate hefty infrastructure and maintenance
costs.
In addition, Salesforce.com officials said revenue for the company's
first fiscal quarter is projected to be in the range of approximately
$304 million to approximately $305 million. Salesforce.com also updated
the full year revenue guidance it provided on Nov. 20, 2008, with
revenue now expected to be approximately $1.3 billion to approximately
$1.33 billion.
Moreover, Salesforce.com officials said the company handled more
than 12 billion transactions in the fourth quarter alone. There were
100,000 custom applications built on Force.com, there are 166 native
applications available via the Force.com AppExchange, and there are
124,000 Force.com developers.
In addition, Salesforce.com launched Force.com Sites, which led to
the launch of 1,500 sites, 130 million hits and 15 million total page
views. The company also launched the Service Cloud, enabling customer
service organizations to join and manage customer service conversations
in the cloud.
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