Last night, salesforce.com
The company put up second-quarter revenue of $546 million, a 38% year-over-year jump, and non-GAAP earnings per share of $0.30. Revenue easily beat the expectation of $528.8 million, with EPS coming in on target with the $0.30 estimate. Third-quarter revenue guided higher than the Street was looking for, with the company projecting between $568 million and $570 million.
All the right numbers are going in the right direction. Net paying customers rose by a quarterly record of roughly 6,300 to 104,000. Deferred revenue increased by 37% to $935 million. Cash flow from operations increased 9% to $83 million. This stock is a growth machine.
When reported on a GAAP basis, the company reported a net loss of $0.03, but I'm not overly concerned with this figure. The company continues its trend of heavy stock-based compensation expenses, but I agree with Fool Anders Bylund that it's a nonissue when you step back and look at the bigger-picture numbers.
Despite having a strong start to 2011 and reaching an all-time high of $160 a month ago, the recent market selloff has brought salesforce.com down to negative territory for the year. Tech stocks took it particularly bad yesterday after NetApp
I think the market is presenting a buying opportunity here to pick up shares at nearly a 30% discount to the all-time high set a month ago. The stock has pulled back far more than the broader market for no reason specific to salesforce.com. If you decide against picking up shares while you still can, the very least you can do is add salesforce.com to your Watchlist.
Fool contributor Evan Niu holds no position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of Qlik Technologies. Various Motley Fool newsletter services have recommended buying shares of salesforce.com and Qlik Technologies and shorting salesforce.com. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.