Salesforce.com beats Q4 targets, ended FY2014 with $4.07B in revenue

Salesforce.com beats Q4 targets, ended FY2014 with $4.07B in revenue

Summary: Wall Street was expecting Salesforce to report fourth quarter non-GAAP earnings of six cents a share on revenue of $1.13 billion.

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Following up Dreamforce '13 in November, analysts were expecting big deals and results from Salesforce.com, which delivered its fourth quarter earnings report after the bell on Thursday.

The cloud company reported a net loss of $116.6 million, or 19 cents per share (statement).

Non-GAAP earnings were seven cents per share on a revenue of $1.15 billion, up 37 percent year-over-year.

Wall Street was expecting Salesforce to report fourth quarter non-GAAP earnings of six cents a share on revenue of $1.13 billion.

However, that GAAP net loss touched a nerve with investors as Salesforce shares slipped in after-hours trading.

For 2013 overall, the San Francisco-headquartered business raked in approximately $4.07 billion in revenue, an increase of 33 percent annually, with earnings of 35 cents a pop.

Salesforce acknowledged that the positive revenue figures were given a boost by the $2.6 billion acquisition of ExactTarget, which closed last summer.

The digital marketing automation and analytics software portfolio was  integrated into and now forms the foundation of Salesforce's since-renamed ExactTarget Marketing Cloud.

Salesforce followed through on analyst expectations to deliver bigger corporate deals.

Subscription and support revenues for the quarter increased by 37 percent y-o-y to $1.08 billion, while professional services and other revenues shot up by 43 percent annually to $70 million. 

CEO Marc Benioff typically reflects on the annual run rate from quater-to-quarter. In the Q4 report, Benioff offered a glimpse at the goals for the year to come:

I'm delighted to announce that we are raising our fiscal year 2015 revenue guidance by $100 million, to reach $5.3 billion, which is a full year growth rate of 30% at the high end of our range.

For the current quarter, Wall Street expects Salesforce to start off the year with earnings of 10 cents per share and revenue of $1.19 billion.

The CRM giant followed up with a Q1 revenue guidance range of $1.205 billion to $1.21 billion, with non-GAAP earnings projected to fall again around nine and 10 cents a share.

As touched upon by Benioff, Salesforce touted that it upped its full year revenue guidance range to $5.25 billion to $5.3 billion, which would translate to an increase of 29 to 30 percent on an annual basis, with earnings between 48 and 50 cents per share.

Topics: Cloud, Enterprise Software, Salesforce.com, Software, Enterprise 2.0

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