Wow - record revenues for cloud computing vendor Salesforce.com - the first billion dollar cloud computing company in fact. We are in a recession right? This shows once again the cost-saving benefits of using technology in tough times to become more productive and thereby reduce waste and increase productivity.
Obviously SaaS and CRM are hot buttons at the company and this news shows that when these two areas intersect, you have great synergies.
For the fourth quarter and full fiscal year, the company reported a 35 percent year-over-year increase in revenues for its subscription and support revenues with $266.1 million. For the full fiscal year, this same number was up 45 percent at $984.6 million. The company increased net paying customers in the quarter and year. 3,600 and 14,400 respectively.
Going forward, the company also said it expects revenue for their first fiscal quarter to be somewhere in the range of $304 million to 305 million. And, as of February 25, 2009, the company also announced an update to its prior revenue guidance for the fiscal year 2010, which they first announced on November 20, 2008, which is now projected to reach $1.30 - $1.33 Billion.
Salesforce.com reported revenue of $290 million for the quarter ending January 31, up from $217 million the year before. Profits jumped 86% to $13.8 million. Because Salesforce.com only recognizes revenue a quarter at a time, a better indicator of its financial health is deferred revenue. This closely watched metric, which provides insight into the number of new sales the company made, jumped to $594 million from $470 million the previous quarter.