Salesforce.com, Inc. (CRM) Crushes Q4 Estimates; CFO Smith To Retire

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Salesforce.com, Inc. (CRM) Crushes Q4 Estimates; CFO Smith To Retire
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Salesforce.com, inc. (NYSE:CRM) reported better than expected fourth quarter results on Thursday. The enterprise cloud computing company’s non-GAAP earnings came in at 7 cents a share, beating the Wall Street consensus of 6 cents. Salesforce’s revenues jumped 37% YoY to $1.15 billion, slightly above analyst estimates of $1.13 billion. On GAAP basis, the company posted a net loss of 19 cents or $117 million for the quarter ending January 31, 2014. For the full year, Salesforce incurred a loss of $232 million, while revenues surged 33% to $4.07 billion.

Salesforce issues lukewarm current quarter guidance

However, Salesforce.com, inc. (NYSE:CRM) shares fell 1.22% to $65.41 in after-hours trading Thursday. That’s mainly because of the company’s lukewarm current quarter and full year guidance. The San Francisco-based company said it expects 9-10 cents in Q1 earnings and 48-50 cents in full year EPS. Analysts polled by Thomson Reuters were anticipating Q1 EPS of 10 cents and full year earnings of 50 cents.

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Deferred revenue, which shows growth in the company’s subscriptions, jumped 35% YoY to $2.5 billion. It was helped by the company’s acquisition of ExactTarget last year. Salesforce.com, inc. (NYSE:CRM) raised its revenue guidance for the fiscal 2015, which ends January 31 next year. The company now expects $5.3 billion in full year revenues, up from the previous guidance of $5.2 billion.

Salesforce landing more big-ticket deals

Salesforce.com, inc. (NYSE:CRM) CEO Marc Benioff announced during the conference call that the company’s long-time CFO Graham Smith plans to retire in March 2015. Benioff said Smith has been a terrific CFO. Moreover, the company is now landing bigger deals for its cloud business. During the fourth quarter, Salesforce won more than 200 seven-figure deals and more than 10 eight-figure transactions during Q4. The company had landed only 150 such deals in the same quarter last year.

On June 7, 2013, Salesforce.com, inc. (NYSE:CRM) hired Keith Block as its vice chairman and president. Block also oversees the company’s sales operations. A former Oracle Corporation (NYSE:ORCL) executive, he was expected to help Salesforce land big deals with large enterprises. And the latest statistics show that he has delivered.

Salesforce.com, inc. (NYSE:CRM) shares have gained 55% over the past 12 months.

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