Salesforce.com, Inc. Rides Strong European Sales to a Slight Earnings Surprise
Salesforce.com just reported results for the first quarter of fiscal year 2015. Shares of the cloud-based customer management software vendor rose as much as 3% on the news, but then fell back to a net 1% drop later in the after-hours session.
In the first quarter, Salesforce's sales rose 37% year-over-year to land at $1.2 billion. Adjusted earnings stopped at $0.11 per share, up from $0.10 per share in the year-ago period. Both figures were slightly ahead of analyst expectations.
The non-GAAP earnings total excludes a $0.20 charge per share related to stock-based compensation, as well as a $0.07 non-cash amortization expense for purchased intangibles. Without such adjustments, Salesforce's GAAP loss increased from $0.12 to $0.16 per share, year over year.
Free cash flows nearly doubled year-over-year to $413 million.
Guidance figures for the second quarter and full year were in line with analyst targets.
Revenue growth was particularly healthy in the European segment and slower in Asia-Pacific. Nevertheless, the core American market still represents 71% of Salesforce's total sales.
"Salesforce.com continues to be the #1 CRM platform, and is the fastest growing top ten software company in the world," said Salesforce CEO Marc Benioff in a prepared statement.
The article Salesforce.com, Inc. Rides Strong European Sales to a Slight Earnings Surprise originally appeared on Fool.com.Anders Bylund has no position in any stocks mentioned. The Motley Fool recommends salesforce.com. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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