salesforce.com, inc Beats Up on Analysts Yet Again

salesforce.com, inc (NYSE: CRM  ) reported earnings on Aug. 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended July 31 (Q2), salesforce.com, inc met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share expanded.

Gross margins contracted, operating margins grew, net margins contracted.

Revenue details
salesforce.com, inc logged revenue of $731.6 million. The 33 analysts polled by S&P Capital IQ looked for sales of $728.2 million on the same basis. GAAP reported sales were 34% higher than the prior-year quarter's $546.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.42. The 35 earnings estimates compiled by S&P Capital IQ averaged $0.39 per share. GAAP EPS were -$0.07 for Q2 versus -$0.03 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 77.8%, 10 basis points worse than the prior-year quarter. Operating margin was -1.8%, 110 basis points better than the prior-year quarter. Net margin was -1.3%, 50 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $772.3 million. On the bottom line, the average EPS estimate is $0.33.

Next year's average estimate for revenue is $3.03 billion. The average EPS estimate is $1.50.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on salesforce.com, inc is outperform, with an average price target of $162.30.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has the following options: short AUG 2012 $130.00 puts on Salesforce.com, long AUG 2012 $150.00 puts on Salesforce.com, short JAN 2013 $150.00 calls on Salesforce.com, and long JAN 2013 $150.00 puts on Salesforce.com. Motley Fool newsletter services recommend Salesforce.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On August 24, 2012, at 1:15 PM, dj235 wrote:

    Revenue GAAP? I have never heard of revenue GAAP? What is revenue non-GAAP?

    So they landed a huge contract and they lost money? 6th quarter in a row that they did not make money.

  • Report this Comment On August 24, 2012, at 8:21 PM, PostScience wrote:

    Why even bother to report non-GAAP numbers?

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