Must-know: Salesforce.com’s 2Q15 earnings
Overview: Salesforce.com's 2Q15 earnings and strategies (Part 1 of 13)
Overview of Salesforce.com
Salesforce.com (CRM) was founded in 1999. It provides customer relationship management (or CRM) services to businesses. Salesforce.com provides a technology platform where customers and developers can build and run applications.
The previous chart shows the contribution of various sources towards Salesforce.com’s consolidated revenues. Subscription and support revenue forms a major part of Salesforce.com’s revenues. It’s followed by professional services.
2Q15 earnings review
On August 21, 2014, Salesforce.com reported its fiscal second quarter earnings. In 2Q15, Subscription and support revenues and Professional services grew 37% and 58% on a year-over-year (or YoY) basis, respectively. In 2Q15, consolidated revenues were reported at $1.32 billion—an increase of 38% on a YoY basis.
Segment’s performance
In 2Q15, revenues from subscriptions to its Sales Cloud and Service Cloud stood at ~610 million and $319 million, respectively. The Salesforce1 Platform and ExactTarget Marketing Cloud generated revenues of ~$181 and $122 million, respectively. In 2Q15, the company reported non GAAP earnings per share (or non-GAAP EPS) and cash flow from operations (or CFO) of $0.13 and $246 million.
Global growth
On a constant currency basis, the Americas recorded the highest growth of 39%. It was followed by the Europe, Middle East, and Africa (or EMEA) region. It grew by 36%. Asia Pacific posted growth of 27% on YoY basis.
According to Gartner, the worldwide CRM software market was worth $20.4 billion in 2013—an increase of 13.7% on a YoY basis. Salesforce.com led the market with 16% market share. It’s followed by SAP (SAP). SAP held 13% market share. Oracle (ORCL), Microsoft (MSFT), and IBM (IBM) held 10%, 7%, and 4% share, respectively.
Browse this series on Market Realist:
