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Last Update: 01-Mar-13 07:34 ET
SalesForce.com shares spike 4% following better than expected earnings
Salesforce.com (CRM $177.00 +7.78) reported fourth quarter earnings of $0.51 per share, $0.11 better than the Capital IQ consensus of $0.40, while revenues rose 32.1% year/year to $835 million versus the $830.9 million consensus. Deferred Revenue: Deferred revenue on the balance sheet as of January 31, 2013 was $1.86 billion, an increase of 35% on a year-over-year basis. Current deferred revenue increased by 39% year-over-year to $1.80 billion, benefited in part by longer invoice durations. Non-current deferred revenue decreased by 27% year-over-year to $64 million. Unbilled deferred revenue, representing business that is contracted but unbilled and off balance sheet, ended the fourth quarter at approximately $3.5 billion, up from approximately $2.2 billion at the end of the fiscal 2012. Cash: Cash generated from operations for the fiscal fourth quarter was $282 million, an increase of 17% on a year-over-year basis. For the full fiscal year 2013, operating cash flow totaled $737 million, up 25% year-over-year. Total cash, cash equivalents and marketable securities finished the quarter at $1.8 billion. Co issues in-line guidance for Q1, sees EPS of $0.40-0.42 vs. $0.42 Capital IQ consensus and revenues of $882-887 million versus the $886.27 million consensus. The company issued in-line guidance for fiscal year 2014 with EPS of $1.93-1.97 versus the $1.97 consensus and revenues of $3.82-3.87 billion (prior $3.80-385 billion) versus the $3.86 billion consensus. EPS estimates assume a GAAP tax rate of approximately negative 54%, which reflects the estimated annual change in the tax valuation allowance, and a non-GAAP tax rate of approximately 35%. Due to the tax valuation allowance, however, the GAAP tax rate could be volatile and is therefore difficult to forecast. The GAAP EPS calculation assumes an average basic share count of approximately 150 million shares, and the non-GAAP EPS calculation assumes an average fully diluted share count of approximately 161 million shares.
