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:

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Agency

Publicis Launches New Digital Agency

Publicis Launches New Digital Agency

Roar, an amalgam of top digital talent from across Publicis Groupe, will be led by Zenith OptiMedia veteran Sean Reardon.

RAPP Names Orlov CEO

RAPP Names Orlov CEO

The Volkswagen marketing executive is a veteran of Wunderman and WPP.

Hawthorne Opens Mobile Unit, Names Digital Director

Hawthorne Opens Mobile Unit, Names Digital Director

Jared Lake moves over from M&C Saatchi Mobile to head the new unit.