Upcoming AWS Coverage on Splunk Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 16, 2017 / Active Wall St. announces its post-earnings coverage on salesforce.com, inc. (NYSE: CRM).The Company disclosed its financial results for the fourth quarter fiscal 2017 and full year 2017 on February 28, 2017. The enterprise cloud computing solutions Company reported better-than-expected revenue and earnings, and raised revenue forecast for its full fiscal year. Register with us now for your free membership at:

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One of salesforce.com's competitors within the Application Software space, Splunk Inc. (NASDAQ: SPLK), reported on February 24, 2017, its results for its fiscal fourth quarter and full year ended January 31, 2017. AWS will be initiating a research report on Splunk in the coming days.

Today, AWS is promoting its earnings coverage on CRM; touching on SPLK. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

For the three months ended January 31, 2017, Salesforce delivered total revenue of $2.29 billion, an increase of 27% y-o-y and 28% in constant currency. The Company's revenue number came in above market expectations of $2.28 billion. Salesforce's subscription and support's revenues totaled $2.11 billion in the reported quarter, up 25% on a y-o-y basis. Salesforce's Professional services and other revenues surged 45% to $183.34 million.

Salesforce's Sales Cloud grew 13% for FY17, becoming the first $3 billion cloud. For the full year, Service Cloud grew 28%; platform and other grew 39%; while Marketing Cloud, excluding Demandware and Krux, grew 25%. The Company's Demandware performed strongly in the first six months, contributing approximately $63 million in revenue for the reported quarter and $120 million for the year. Dollar attrition for the fourth quarter, excluding Marketing Cloud and other acquired businesses, remained below 9%.

Salesforce's full fiscal year 2017 revenue was $8.39 billion, up 26% y-o-y and 27% in constant currency. Subscription and support's revenues were $7.76 billion, an increase of 25% on a y-o-y basis. Professional services and other revenues totaled $636 million for FY17, reflecting an increase of 38% on a y-o-y basis.

Salesforce's Q4 FY17 GAAP loss was $51.44 million, or $0.07 per share, compared to a loss of $25.51 million, or $0.04 per share, in the year earlier same period. On an adjusted basis, the Company posted diluted earnings per share of $0.28 compared to $0.19 in the year earlier comparable quarter. Results also exceeded market estimates for earnings of $0.25 per share. For the full fiscal year 2017, the Company's GAAP diluted earnings per share totaled $0.26 compared to GAAP diluted loss of $0.07, while non-GAAP diluted earnings per share was $1.01 versus $0.75 per share.

Cash Flow & Balance Sheet

Salesforce's CapEx for FY17 was $464 million, or approximately 5.5% of revenue. This was primarily driven by leasehold improvements and continued investment in data centers globally. For FY18, the Company anticipates CapEx to be between 4%-6% of revenue, which is in a lower range than in prior years.

For Q4 FY17, Salesforce generated cash from operations worth $706 million; an increase of 50% on a y-o-y basis. Cash generated from operations for the full fiscal year 2017 was $2.16 billion, an increase of 29% year-over-year. Total cash, cash equivalents, and marketable securities were $2.21 billion at the end of the quarter.

Deferred revenue on the balance sheet as of January 31, 2017, was $5.54 billion, an increase of 29% on a y-o-y basis and in constant currency. Unbilled deferred revenue, representing business that is contracted but unbilled and off balance sheet, ended the reported quarter at approximately $9.0 billion, up 27% y-o-y. This includes approximately $450 million related to unbilled deferred revenue from Demandware.

Outlook

As of February 28, 2017, the Company is initiating revenue, earnings per share, and deferred revenue guidance for Q1 FY18. Furthermore, the Company raised its full FY18 revenue guidance previously provided on November 17, 2016.

For Q1 FY18, Salesforce is projecting revenue to be in the range of approximately $2.34 billion to $2.35 billion, an increase of 22% to 23% on a y-o-y basis. The Company expects GAAP loss per share in the range of ($0.03) to ($0.02), while non-GAAP diluted earnings per share is projected to be in the band of $0.25 to $0.26. On balance sheet deferred revenue growth is projected to be approximately 22% to 23% y-o-y.

For FY18 Salesforce is forecasting revenue in the range of approximately $10.15 billion to $10.20 billion, an increase of 21% to 22% year-over-year. The Company estimates GAAP diluted earnings per share to be between $0.05 to $0.07, while non-GAAP diluted earnings per share is projected to be between $1.27 to $1.29. Operating cash flow growth is projected to be 20% to 21% on a y-o-y basis.

Stock Performance

On Wednesday, March 15, 2017, the stock closed the trading session at $83.48, slightly down 0.04% from its previous closing price of $83.51. A total volume of 3.07 million shares have exchanged hands. salesforce.com's stock price advanced 18.61% in the last three months, 14.26% in the past six months, and 16.43% in the previous twelve months. Moreover, the stock gained 21.94% since the start of the year. At Wednesday's closing price, the stock's net capitalization stands at $58.90 billion.

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SOURCE: Active Wall Street