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February 26, 2009

Salesforce.com: First Billion Dollar Cloud Computing Company



Enterprise cloud computing company Salesforce.com has hit a milestone announcing that it achieved fiscal year revenues of approximately $1.077 billion, an increase of 44 percent from the prior year.

Not only is this a significant announcement for the company who's total Q4 revenue was $289.6 million, an increase of 34 percent on a year-over-year basis and an increase of 5 percent on a quarter-over-quarter basis, but it is also a major step for the growing cloud computing market.
 
"Salesforce.com (News - Alert) is proud to be the first billion dollar cloud computing company," said Marc Benioff, chairman and CEO, salesforce.com. "At a time when capital is precious, big-ticket software purchases just don't make sense."

For the fourth quarter and full fiscal year, the company reported a 35 percent year-over-year increase in revenues for its subscription and support revenues with $266.1 million. For the full fiscal year, this same number was up 45 percent at $984.6 million.

The company also boasted an increase in net paying customers in the quarter and during the year. For the fourth quarter it saw an increase of approximately 3,600 while approximately 14,400 were added during the year.

In addition, the company said its Q4 GAAP diluted earnings per share were, "approximately $0.11, including approximately $21.1 million in stock based compensation expense and approximately $2.9 million in amortization of purchased intangibles related to previously announced acquisitions."

For the full year, this number rose 130 percent year-over-year to $0.35. "Including approximately $77.4 million in stock based compensation and approximately $8.0 million in amortization of purchased intangibles related to previously announced acquisitions."

The company also said it expects revenue for their first fiscal quarter to be somewhere in the range of $304 million to 305 million. And, as of February 25, 2009, the company also announced an update to its prior revenue guidance for the fiscal year 2010, which they first announced on November 20, 2008, which is now projected to reach $1.30 - $1.33 Billion.

In a recent interview with TMC's (News - Alert) Greg Galitzine, Peter Coffee, Director, Platform Research at Salesforce.com commented that, "Every day, more than one million subscribers in almost 52,000 salesforce.com customer organizations enjoy the cloud computing benefits of rapid deployment and immediate scalability with no on-premise infrastructure."
 
"Salesforce.com continually extends its commitment to combining the efficiencies of multi-tenant architecture with the power that enterprise IT demands for core applications. Unique Salesforce.com technologies include Apex Code (the first multi-tenant programming language) and Visualforce (a framework enabling rapid development of a customized user interface with no client-side code)," Coffee said.
 
When asked his view on the future of the cloud computing space, Coffee said, "Customers are rapidly losing their tolerance for the old IT model — with its burdens of capital investment, disruptive upgrade cycles, and unexpected costs just to keep things working. All major providers of conventional software are struggling to maintain marketplace interest in their intellectual property by promising to bring forth cloud-based extensions and access points for their systems."
 
"The future of the cloud is the future of IT and the future of workplace communication and collaboration. If it’s not happening in the cloud, it’s merely being maintained until it’s practical for a cloud-based upgrade to go live."
 
 

Stefania Viscusi is an assignment editor for TMCnet, covering VoIP, CRM, call center and wireless technologies. To read more of Stefania’s articles, please visit her columnist page.

Edited by Stefania Viscusi


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