Boston, MA 05/21/2014 (wallstreetpr) – salesforce.com, inc. (NYSE:CRM) delivered strong results in its fiscal first quarter ended April 30, 2014 with 37% increase in revenue and 67% increase in operating cash flow.
Subscription fees drove growth
In the first quarter 2015 (1Q2015), the Company reported revenue of $1.23 billion, up by 37% compared to prior year period due to increased revenue from subscriptions and services. Subscription and support represent 94% of total revenue during the quarter. The segment revenues increased to $1.15 billion, up by 36% from $842.2 million in 1Q2014 with increased subscription of its enterprise cloud computing services.
salesforce.com, inc. (NYSE:CRM) also posted significant growth in fixed-price contracts for professional services such as process mapping and implementation that increased by 58% to $79 million from $50.4 million during 1Q2014.
The increasing revenues from subscriptions and services increased the adjusted (non-GAAP) gross profit to $975 million from $716 million in 1Q2014 and adjusted operating income of $119.4 million versus $94 million in 1Q2014. Consequently, it improved the adjusted EPS of $0.11.
Improved operating cash flow
The increasing operating performance improved the cash flow from its operation. The Company generated operating cash flow $473 million, an increase of 67% compared to prior year period. The Company continues to invest in infrastructure development, so, the capital expenditure during the period were up to $60.1 million. As a result, the firm’s free cash flow increased to $413 million.
But, higher debt repayment with no proceeds from borrowings affected the net cash flow significantly. So, cash and cash equivalents as of April 30, 2014 were $828 million. Therefore, the Company’s total cash balance including marketable securities was $1.53 billion.
Outlook for 2015
Based on the growing demand of its products and services, salesforce.com, inc. (NYSE:CRM)expects 30-31% year over year growth and anticipate revenue of at a range of $5.30-$5.34 billion in FY2015 with a diluted non-GAAP EPS of $0.49 to $0.51.
