Salesforce.com revenue, marketing expenses, up in fiscal Q1

Share this content:

Salesforce.com reported $504.3 million in revenue in the first quarter of fiscal 2012, a 34% year-over-year increase. The company saw $254 million in sales and marketing expenses in the period, a 46% increase compared with fiscal Q1 2011.

The San Francisco-based CRM company's subscription and support revenue was $473.5 million, a year-over-year increase of 35% in fiscal Q1 2012, which ended April 30. Professional services and other business accounted for $30.8 million in revenue, an increase of 18%, year-over-year.

Operating expenses increased 45%, compared with Q1 2011, to $404 million. Income from operations decreased 106% year-over-year, resulting in a loss of $2.8 million. Cash generated from operations for the fiscal first quarter was $140 million, a decrease of 3% year-over-year.

Salesforce.com's customer base grew by about 5,400 during the period to close at approximately 97,700. It has added 20,400 net paying customers since April 30, 2010, an increase of 26% year-over-year, the company said in an earnings statement.

“Salesforce.com has become the first enterprise cloud computing company to reach a $2 billion annual revenue run rate," said Marc Benioff, chairman and CEO, in a statement. "We are delighted to see our revenue growth rate continue to accelerate."

Salesforce.com acquired social listening company, Radian6, for $276 million during the quarter. It also purchased two Super Bowl spots.

Correction: An earlier version of this article incorrectly described the company's expenses in its fiscal first quarter. Salesforce.com spent $254 million on sales and marketing in the period, an increase of 46% compared with the prior year. We regret the error.

Loading links....

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here