reported Salesforce.com's (NYSE:
) five percent surge after releasing fourth quarter earnings
after the bell on Thursday.
Salesforce ultimately finished up around 1.4 percent for the
The company topped estimates on both the EPS and revenue
fronts, leading to a continued surge on Friday.
Fourth quarter EPS closed at $0.51, beating the Q4 2011
performance of $0.43 per share. This figure also topped the Wall
Street consensus of $0.40.
Revenue closed at $835 million for the fourth quarter, up 32
percent year-over-year. As with EPS, revenue came in above
expectations, as Wall Street wanted to see about $831
Full-year EPS finished at $1.63, topping the FY 2012 figure of
Revenue climbed 34 percent during FY 2013, closing at $3.05
Major Growth Across the Board
Subscription and support revenues finished at $785 million for
the quarter and $2.87 billion for the year, growing 32 and 35
Professional services and other revenues closed at $49 million
for the quarter and $181 million for the year, rising 31 and 29
Guidance on Par
Salesforce expects Q1 FY 2014 revenue to finish in the $882 to
$887 million range. This is in line with the Wall Street
consensus of around $886 million.
The company expects its full-year revenue to close in the
$3.82 to $3.87 billion range. As with Q1 guidance, this figure is
in tune with analysts' expectations of $3.85 billion.
Salesforce Unveils Cloud Service Mobile
On Tuesday, Salesforce introduced its Cloud Service Mobile
The tool can deliver agent-guided assistance to customers on
mobile devices via any web browser. This can be thought of along
the lines of the remote assistance PC users have become
Also, customers will be able to find answers in a one-stop
online community instead of browsing through several sites, as is
common among web users.
Additionally, the tool offers a live-chat feature in which
customers can chat with customer service representatives via
their mobile device instead of making a call or chatting from a
PC. On this note, customer service agents can also provide
web-based service on-the-go instead of from their desk.
With the mentioned features and their potential implications
on the world of customer service, it will be interesting to see
if Cloud Service Mobile takes off and becomes a key source of
revenue for the firm.
Salesforce Reaches Record High
Salesforce has experienced a few significant swings in the
past few months.
On December 11, the stock climbed over four percent. This was
apparently due to news that President Obama's campaign used
multiple Salesforce products to orchestrate its successful 2012
Then, on February 25, the stock dropped over four percent and
closed below $165 for the first time in nearly two months. The
stock finished the day a bit above $163. There was no apparent
reason for the decline.
On Friday, Salesforce is trading above $180 for the first time
in its history.
Salesforce is up around 6.5 percent.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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