Salesforce.com hoists fiscal year outlook as Q2 income slides
Parklife up in clouds
Salesforce.com jacked up its outlook for the year yesterday, after reporting second quarter sales that beat Wall Street expectations on revenues but which saw net income slide.
The company, which grabbed more than 5,000 new customers in the period ended 31 July, recorded Q2 revenue of $394m, up 25 per cent from $316m total sales in the same quarter last year.
Analysts had predicted Saleforce.com would record revenue of $384.8m for the quarter.
However, the cloud-based computer services giant saw no change in its Q2 earnings, excluding items, which came in flat at 29 cents per share.
The bottom line net income figure - including "items" - looked less rosy, with net income coming at $14.7m, well down on last year's $21.1m.
Salesforce.com, which has 82,000 customers on its books, raised its full fiscal year sales forecast to a range of $1.595bn to $1.6bn. The company also hoisted its non-GAAP earnings per share expectation to between $1.15 and $1.17.
The Marc Benioff-led firm forecast Q3 earnings of 30 cents a share to 31 cents a share on revenue of between $408m to $410m.
"We're delighted today to raise our full fiscal year 2011 revenue guidance," said Benioff.
"Our accelerating revenue growth in the second quarter, combined with an excellent quarter of new business worldwide, gives us confidence to raise our guidance to this exciting new milestone." ®