salesforce.com, inc Hits Estimates in Solid Quarter

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

The 10-second takeaway
For the quarter ended April 30 (Q1), salesforce.com, inc met expectations on revenues and met expectations on earnings per share.

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

Margins dropped across the board.

Revenue details
salesforce.com, inc logged revenue of $892.6 million. The 34 analysts polled by S&P Capital IQ anticipated a top line of $887.3 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $695.5 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 $0.10. The 37 earnings estimates compiled by S&P Capital IQ predicted $0.10 per share. Non-GAAP EPS of $0.10 for Q1 were 11% higher than the prior-year quarter's $0.09 per share. GAAP EPS were -$0.12 for Q1 compared to -$0.04 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 76.6%, 160 basis points worse than the prior-year quarter. Operating margin was -5.0%, 180 basis points worse than the prior-year quarter. Net margin was -7.6%, 480 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $935.4 million. On the bottom line, the average EPS estimate is $0.12.

Next year's average estimate for revenue is $3.87 billion. The average EPS estimate is $0.50.

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 $48.21.

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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 recommends 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 May 23, 2013, at 9:46 PM, sniggity wrote:

    I can't get a Fool blog started, while this crap is not only published, but syndicated. "Solid quarter?" Give me a break. Where's the analysis? These kinds of articles just regurgitate the earnings numbers, and plot them using the same tired Excel graphs.

    No disrespect intended toward the author; he's just doing a job, writing the kinds of articles "they" want. I'm not sure who "they" are in the editorial board, but I feel confident that "they" should be sacked.

  • Report this Comment On May 23, 2013, at 10:04 PM, Mega wrote:

    sniggity

    It's a computer generated article which explains the general uselessness. A technique that TMF uses to increase page views.

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