Salesforce.com Inc (CRM), Thursday reported a fourth-quarter loss mostly on increased stock-based compensation and higher charges, both related to acquisitions. Earnings excluding these expenses were well ahead of the prior-year quarter with revenues increasing substantially, mostly in the U.S. Adjusted earnings as well as revenues for the quarter came in ahead of Street estimates.
Salesforce recently announced the grant of equity awards to new employees who joined the company in connection with its previously announced acquisition of Model Metrics. Overall, the company said it recruited nearly 2,000 employees for the year ended January in the U.S.
Amortization of purchased intangibles were thrice as much as that in the year-ago quarter, while stock-based expenses were nearly 70 percent higher than last year.
The company detailed its outlook for the first quarter and lifted its revenue guidance for fiscal year 2013.
Marc Benioff, chairman and CEO, said, "Given the strong customer response to the social enterprise, we're excited to raise our guidance today, which puts us on pace to exceed the $3 billion revenue run rate during FY13."
Salesforce shares gained over 10 percent in after-hours trade on the New York Stock Exchange following the announcement of results. Salesforce.com reported a net loss for the fourth quarter of $4.1 million or $0.03 per share, compared to net income of $10.9 million or $0.08 per share in the year-ago quarter.
Excluding amortization and stock-based expenses, adjusted net income for the quarter was $61.6 million or $0.43 per share, compared with $43.1 million or $0.31 per share last year.
On average, 38 analysts polled by Thomson Reuters expected earnings of $0.40 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter grew 38 percent to $631.9 million from the year-ago quarter. Thirty-six Street analysts had a consensus revenue estimate of $624.0 million for the quarter.
Revenues grew in all regions, with a 41 percent growth in the U.S compared to a growth of 26 percent in the year-ago period.
For the current quarter, the company expects a loss of $0.19 to $0.18 per share, and adjusted income in the range of $0.33 to $0.34 per share. The company expects 33 to 34 percent increase in revenue over the prior-year quarter, in the range of $673 million to $678 million. The Street currently expects earnings of $0.36 on revenues of $663.1 million for the quarter.
For fiscal year 2013, the company initiated its earnings guidance, expecting a net loss of $0.55 to $0.51 per share, adjusted earnings in the range of $1.58 - $1.62 per share, while the Street currently expecting $1.62 per share.
The company lifted its revenue guidance for fiscal 2013, now expecting 29 to 30 percent growth, in the range of $2.92 billion to $2.95 billion, compared to the prior range of $2.88 billion to $2.92 billion. The Street currently expects revenue of $2.91 billion for the year.
CRM closed Thursday's regular trade at $131.77, up $3.70 or 2.89%. In after-hours trade, the stock gained $14.93 or 11.33%. Over the past year, the stock traded in a range of $94.09 - $160.12.
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