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Last Update: 21-Nov-12 08:33 ET
SalesForce shares rise 2% following better than expected earnings
Salesforce (CRM $149.71 +3.81) reported third quarter earnings of $0.33 per share, $0.01 better than the Capital IQ consensus of $0.32, while revenues rose 34.9% year/year to $788 million versus the $776.52 mln consensus. The company's non-GAAP results exclude the effects of the $149 million charge related to the establishment of the tax valuation allowance, $26 million related to the quarterly change in the tax valuation allowance, $105 million in stock-based compensation expense, $26 million in amortization of purchased intangibles, and $6 million in net non-cash interest expense related to the company's convertible senior notes. GAAP EPS calculations are based on a basic share count of approximately 142 million shares. The company issued in-line guidance for the fourth quarter with EPS of $0.38-0.40 versus the $0.40 consensus and revenues of $825-830 versus the $829.97 million consensus. The company issued in-line guidance for fiscal year 2013 with EPS of $1.50-1.52 versus the $1.50 consensus and revenues of $3.041-3.046 billion versus the $3.03 billion consensus. The company in-line guidance for fiscal year 2014 sees FY14 revs of $3.80-3.85 bln vs. $3.83 bln Capital IQ Consensus Estimate. Deferred Revenue: Deferred revenue on the balance sheet as of October 31, 2012 was $1.29 billion, an increase of 41% on a year-over-year basis. Current deferred revenue increased by 35% year-over-year to $1.23 billion, benefited in part by longer invoice durations. Non-current deferred revenue increased by 414% year-over-year to $66 million. Unbilled deferred revenue, representing business that is contracted but unbilled and off balance sheet, ended the third quarter at approximately $3 billion, up from approximately $2.8 billion at the end of the fiscal second quarter. Revenues by Geography: Americas $547 million, up 37% y/y; Europe $133 million, up 29% y/y; Asia Pacific $107 million, up 29% year over year.
