salesforce.com, inc. (CRM)
F2Q 2014 Earnings Call
August 29, 2013, 5:00 pm ET
John Cummings - Director of Investor Relations
Marc Benioff - Chairman of the Board, Chief Executive Officer
Graham Smith - Chief Financial Officer, Executive Vice President
Kash Rangan - Bank of America Merrill Lynch
Brent Thill - UBS
Karl Keirstead - BMO Capital
Mark Murphy - Piper Jaffray
Kirk Materne - Evercore
Rick Sherlund - Nomura
Terry Tillman - Raymond James
Jobin Mathew - Deutsche Bank
Nathan Schneiderman - Roth Capital
Ross MacMillan - Jefferies
Steven Ashley - Robert W. Baird
David Hilal - FBR
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Mr. John Cummings, Director of Investor Relations you may begin your conference.
Thank you, Sharon, and good afternoon, everyone. Thank you for joining us today to discuss our fiscal second quarter 2014 results. Our second quarter results press release, SEC filings and a webcast replay of today's call can be found on our investor relations website at www.salesforce.com/investor.
We will also be posting highlights of today's call on Twitter at the handle @salesforce_ir. With me today are Marc Benioff, Chief Executive Officer and Graham Smith, Chief Financial Officer. Marc and Graham will share a few prepared remarks about our second quarter results. Then we will open the call up for questions.
Our commentary today will primarily be in non-GAAP terms. Reconciliations between our GAAP and non-GAAP results and forward guidance can be found in our earnings press release issued about an hour ago.
During the call, we may offer incremental metrics to provide additional insight into our business or quarterly results. Please be advised, this detail maybe one-time in nature and may or may not be provided in future. It's also possible we may reference certain unreleased services or features not yet available, because we cannot guarantee future timing or availability of these services or features. We recommend customers listening today make their purchase decisions based on services and features currently available.
The purpose of today's call is to provide you with information regarding our fiscal second quarter 2014 results. Some of our discussion and responses to your questions may contain forward-looking statements which 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 these risks, uncertainties and assumptions 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. With that, I'll turn the call over to Marc.
Thanks so much, John. I have really never been so excited about Salesforce.com and everything that's going on with the company and that's why I am so delighted to get on the call with everybody today. We are having an outstanding year of growth and I am absolutely delighted to share our second quarter results right now.
Revenue for the second quarter rose 31% from a year ago to $957 million, In constant currency, revenue grew even faster at 32%. No other software company, there is no other enterprise software company of our size is growing faster. Deferred revenue rose by more than 30% year-over-year, finishing the quarter at nearly $1.8 billion. Just outstanding.
Operating cash flow exceeded a $180 million for the quarter, an increase of more than 30% year-over-year, and the dollar value of booked business on and off the balance sheet now tops $5.6 billion, also up more than 30% year-over-year. Based on these fantastic results, I am thrilled to announce that just four years after delivering our first $1 billion year, we expect to breakthrough our first ever $1 billion quarter in the third quarter of fiscal 2014, our next quarter, an amazing milestone for Salesforce.com and for the entire cloud computing industry.
In addition, we are once again raising our full fiscal year 2014 revenue guidance, the high end of our guidance puts us on pace to deliver fiscal year 2014 revenue of $4.025 billion with a full year growth rate of 32%, just spectacular growth. Salesforce has always been a catalyst and evangelist for innovation enterprise software. We pioneered the shift to the cloud, to social, to mobile and we have been recognized for innovation by Forbes Magazine, who just ranks Salesforce.com as the most innovative company in the world for a third year in a row. Congratulations to the entire team at Salesforce.com for this incredible achievement.
Now, more than ever, companies are turning to Salesforce.com as their platform for innovation. With our social and mobile and cloud technologies, our customers are connected with their customers in entirely new ways and they are becoming customer companies. Customer companies have a deeper connection with their customers. They can market on any channels, sell as a team, service customers everywhere. And, with the next generation customer platform, customer companies can connect everything on the internet of things.
With our four product lines, sales cloud, service cloud, marketing cloud and the Salesforce platform, our customers have the tools to become customers companies, unlock greater levels of growth, innovation and success. They can build faster. That's why our customers have made Salesforce.com, the world's number one CRM platform and then clear leader in each of our core four markets, our flagship Sales Cloud is now the number one app in the world for sales and it's helping customers drive phenomenal sales performance and top-line growth that's why Gartner once again named us as the undisputed leader in its Magic Quadrant for Sales Force Automation for the seventh year in a row.