salesforce.com, inc (CRM)
Q3 2013 Earnings Call
November 20, 2012 5:00 pm ET
Marc Benioff - Co-Founder, Chairman and Chief Executive Officer
Graham V. Smith - Chief Financial Officer, Principal Accounting Officer and Executive Vice President
Philip Winslow - Crédit Suisse AG, Research Division
Mark R. Murphy - Piper Jaffray Companies, Research Division
Brian J. Schwartz - Oppenheimer & Co. Inc., Research Division
Adam H. Holt - Morgan Stanley, Research Division
Steven M. Ashley - Robert W. Baird & Co. Incorporated, Research Division
Heather Bellini - Goldman Sachs Group Inc., Research Division
Brent Thill - UBS Investment Bank, Research Division
Stewart Materne - Evercore Partners Inc., Research Division
Jason Maynard - Wells Fargo Securities, LLC, Research Division
Laura Lederman - William Blair & Company L.L.C., Research Division
Kash G. Rangan - BofA Merrill Lynch, Research Division
Ross MacMillan - Jefferies & Company, Inc., Research Division
Richard G. Sherlund - Nomura Securities Co. Ltd., Research Division
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Thanks, Jamaria. Good afternoon, and thank you all for joining us today to discuss salesforce.com's third quarter fiscal year 2013 results. Details of our results can be found in a press release issued about an hour ago or in our Form 8-K filed with the SEC. We'll also be tweeting the highlights of our call today on Twitter at the handle @salesforce_ir.
I'm joined today by Marc Benioff, Chairman and CEO; and Graham Smith, our Chief Financial Officer. Marc and Graham will share a few prepared remarks about the quarter, and then we'll open things up to your questions.
Please note that our commentary today will primarily be in non-GAAP terms. Reconciliations between GAAP and non-GAAP metrics for both reported results and forward guidance can be found in our earnings press release. In addition, we may offer incremental metrics to provide greater insight into the dynamics of our business or our quarterly results. Please be advised the additional detail maybe onetime in nature and may or may not be provided in the future. It's possible we may reference certain unreleased services or features not yet currently available in our discussion today. Because we can't guarantee the future timing or availability of these services or features, we recommend customers listening today make their purchase decisions based on services and features that are currently available.
Let me give you a quick Safe Harbor here before we start. The primary purpose of today's call is to provide you with information regarding our fiscal third quarter 2013 performance. Some of our discussions and responses to your questions may contain forward-looking statements. These are subject to risks, uncertainties and assumptions. Should any of these risks or uncertainties materialize or should our assumptions prove to be incorrect, actual company results could differ materially from these forward-looking statements. All of these risks, uncertainties and assumptions, of course, as well as other information on potential risk factors that could affect our financial results, are included in our forms filed with the SEC, including our most recent report on Form 10-Q, particularly under the heading Risk Factors.
Access to our third quarter results press release, historical results or SEC filings and a webcast replay of today's call can all be found on our Investor Relations website at salesforce.com/investors.
With that, let me turn the call over to Marc.
Hey thanks very much, David, and I'm thrilled to kick off our third quarter results and let's begin. First of all, highlights for the quarter. Number one, congratulations to San Francisco Giants for a spectacular World Series win, really great.
Also in the quarter, I'm also pleased to announce we were able to achieve an annual revenue run rate of more than $3 billion. We're one of a small number of software companies to ever achieve this milestone. And this financial achievement also demonstrates the massive shift to social and mobile cloud computing, an amazing level of customer success that companies have had with Salesforce, our technology and our ecosystem.
Hey, let's get right into the results. Number one, revenue for the quarter rose 35% from a year ago to $788 million, pretty awesome, and constant currency revenue grew even faster at 37%. I mean, that is really spectacular growth and I think one of the very best for an enterprise software company this quarter. No other enterprise software company of our size is growing faster than Salesforce. And what's amazing is we're delivering this growth while pushing through this $3 billion revenue run rate, heading right into $4 billion.
Operating cash flow exceeded $100 million for the quarter, our fifth consecutive quarter with operating cash flow in excess of $100 million, just a great job on cash flow over last year. Deferred revenue was roughly $1.3 billion, which is up more than 40% year-over-year. And the dollar value of book business on and off the balance sheet now tops $4.3 billion.
Our top line and pipeline of new business coming out of Dreamforce positions us for a strong finish to the year, with fiscal year 2013 revenue growth of approximately 34% year-over-year. No other enterprise software company is achieving this level of growth. And we are well placed for even more success next year. I'm thrilled to announce that we expect to deliver fiscal year 2014 revenue in the range of $3.8 billion to $3.85 billion, which puts us on pace to exceed that magical $4 billion number annual revenue run rate just next year.