Salesforce Earnings: Revenues Grow 34%, Profit Still Elusive

Salesforce.com has announced its earnings for the second quarter of 2012 (Q2 FY13). It reported total revenue of $732 million, up 34% year-over-year, with subscription and support revenue growing to $687 million and professional services revenue increasing to $44 million. While the sales growth is impressive, it posted a net loss of $9.8 million, as sales and marketing expenses continued to balloon. Its deferred revenue grew faster than revenue, increasing 43% to $1.34 billion.

Its cash and cash equivalents stood at exactly $1 billion, while its short term marketable securities declined to $107 million by the end of the quarter. Its operating cash flow this quarter was around $136 million.

Salesforce.com’s Chairman and CEO, Marc Benioff said:

“Our second quarter revenue growth was outstanding at 34% in dollars and 37% in constant currency. Salesforce.com’s social enterprise strategy is enabling companies to connect with customers, partners, and employees in completely new ways – and it’s creating new opportunities for their growth and ours.”

It has raised its earnings outlook for the next quarter and the full year, but its stock is down nearly 5% as profits continue to elude the leader in the enterprise cloud software market.

via Salesforce – SEC

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