Salesforce.com reported better-than-expected fourth quarter results and delivered a solid outlook for the first quarter and year ahead.
The company reported a fourth quarter net loss of $20.84 million, or 14 cents a share, on revenue of $835 million, up 32 percent from a year ago. Non-GAAP earnings were 51 cents a share in the quarter.
Wall Street was expecting fourth quarter earnings of 40 cents a share on revenue of $830.85 million.
As for the outlook for the first quarter, Salesforce's guidance was largely in line to better than expectations. The company said first quarter revenue will be between $882 million and $887 million with a net loss of 44 cents a share to 42 cents a share. Non-GAAP earnings in the first quarter will be 40 cents a share to 42 cents a share.
Wall Street was expecting first quarter non-GAAP earnings of 42 cents a share on revenue of $886 million.
For fiscal 2014, Salesforce said that revenue will be $3.82 billion to $3.87 billion. The net loss and non-GAAP earnings projections were largely in line. Wall Street was projecting non-GAAP earnings of $1.95 a share on revenue of $3.85 billion.
Here's the earnings outlook:
Chief executive Marc Benioff touted the company’s $3 billion in annual revenue and growth rates.
"No other top 10 enterprise software company is growing faster," he said during an investor call. "We signed more than 150 multi-million dollar transactions. That included nine eight-figure transactions in the quarter. Pretty epic."
"[We're] on the way to our 10 billion dollar dream."
He added that Salesforce was on track to "replace SAP as the number one CRM company in the world."
By the numbers:
The company ended the quarter with $1.8 billion in cash and equivalents.
Deferred revenue was $1.86 billion, up 35 percent from a year ago. Unbilled deferred revenue was up 39 percent to $1.8 billion in the quarter.
Services revenue in the quarter was $49.18 million and subscription and support sales came in at $785.5 million.
Research and development spending for the year was $429.5 billion, up from $295.3 billion in fiscal 2012.
"By 2017, chief marketing officers are going to spend more than chief information officers on technology," Benioff said, citing Gartner statistics.