Salesforce.com reports increase in income for Q3
Salesforce.com released its third quarter earnings report this week, showing a 74% increase in net income and a 48% increase in revenues, compared to Q3 last year.
The on-demand CRM provider reported a net Q3 income of $6.52 million. Sharp increases in revenue added to the rise in income: revenue for the quarter was $192.8 million, compared to $130.05 million for last year.
The 48% increase in total revenue reported this quarter revealed the 49% rise in subscription and support services revenue and the 41% rise in professional services and other revenues.
In America, Salesforce.com revenues were up 40%. The European market showed revenues increasing by 71%, and in Asia revenues were up 92% from Q3 2006.
Results for this quarter were affected by the inclusion of $14.2 million in stock-based compensation, $1.4 million in amortization of purchased intangibles and a 46% tax rate.
Salesforce.com executives expect to surpass the $800 million revenue run rate by the end of Q4.
Some of Salesforce.com's success can be traced to the fact that the company added 2,800 net paying customers in this quarter. The San Francisco-based company's 38,100 total customers this quarter is 41% greater than the last year's Q3 customer total.
Salesforce.com was recently signed by Citigroup to provide a financial advisor desktop application to 30,000 Citigroup employees. Citigroup will be Salesforce.com's fifth customer to provide 25,000 or more individual subscribers.