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

Share this article:

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.

Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Agency

MySpace Owner Names Ex-Ford Marketer as CMO

MySpace Owner Names Ex-Ford Marketer as CMO

Jon Schulz will lead marketing at Interactive Media Holdings, which seeks to advance its reputation as a digital solutions provider.

Are You Really Ready for Customer Experience?

Are You Really Ready for Customer Experience?

Marketers can talk a good game about customer centricity, but actions speak louder than words.

Essentials in Content Marketing: Think like a best-selling author

Essentials in Content Marketing: Think like a best-selling ...

Imagine if all the electronic content thrown your way daily was actually printed on paper. To stand out from those piles of worthless pixels, you must offer your audiences intriguing ...