(RTTNews) -  Tuesday, Salesforce.com (CRM: News ), a customer relationship management service provider, said its profit for the third quarter more than doubled as revenues grew over 20%, with a significant growth in paying customers. Revenues for the quarter came in ahead of estimates, while earnings were in line.

Salesforce.com reported net income attributable to the company that more than doubled to $20.69 million or $0.16 per share from $10.12 million or $0.08 per share in the year-ago period.

On average, thirty analysts polled by Thomson Reuters estimated earnings of $0.16 per share for the quarter. Analysts' estimates typically exclude special items.

Earnings for the quarter included approximately $20.4 million in stock-based compensation expense and about $2.6 million in amortization of purchased intangibles related to previously announced acquisitions.

Revenues for the third quarter increased 20% to $330.54 million from $276.48 million in the year-ago period. Thirty Wall Street analysts estimated revenues of $324.43 million.

Segment-wise, subscription and support revenues increased 21% to $306.87 million from $253.40 million. Professional services and other revenues increased 3% to $23.67 million from $23.08 million in the year-ago period.

Salesforce.com's total cost of revenues, which includes cost of subscription and support revenues as well as professional services and other revenues increased to $65.57 million from $56.34 million in the year-ago period.
The San Francisco, California-based company's research and development expenses increased to $32.76 million from $26.27 million, while marketing and sales expenses increased to $152.16 million from $136.45 million in the year-ago period. General and administrative expenses increased to $49.90 million from $41.28 million during the the comparable period the year earlier.

Other net expenses during the quarter were $336 thousand, compared with net other income of $534 thousand year-ago.

Net paying customers rose about 4,700 during the quarter to finish at approximately 67,900. Compared with the year ago quarter, net paying customers grew by approximately 16,100 or 31%.

The company's cash from operations for the fiscal third quarter increased about 107% to $36 million from a year ago. Total cash, cash equivalents and marketable securities at the end of the quarter was about $1.07 billion, an increase of approximately $265 million from the year prior. Deferred revenue on the balance sheet as of October 31 increased 16% to $545 million on a year-over-year basis.

To receive FREE breaking news email alerts for Salesforce.com Inc and others in your portfolio

 1   2   Next Page