TechTarget

Salesforce.com posts $4.3m Q2 loss despite record-setting 6,300 customer gains

Salesforce.com has posted a loss of $4.3m for its second fiscal quarter, despite gaining over 6,000 new customers for its subscription-based customer relationship...

Salesforce.com has posted a loss of $4.3m for its second fiscal quarter, despite gaining over 6,000 new customers for its subscription-based customer relationship management (CRM) software over a three-month period.

The enterprise cloud computing company reported the loss in the second quarter, compared to a profit of $14.7m for the same period last year.

Customer numbers rose by 6,300 to reach over 100,000 customers in the quarter, representing an increase of 26% year-on-year. In the previous quarter it reported profit of $530,000, down from $17.7m a year earlier, showing a 97% profit slump. Sales were up by 34% to $504m.

Salesforce.com said the rise in customer numbers is a quarterly record for the company.

Operating costs rose from $42.9m to $73.4m in the second quarter of 2011. As a result, income loss from operations was $15m for the period compared to a profit of $29.7m from operations in the same quarter in 2010. Sales were up 38% year-on-year to $546m in the quarter compared to the year before. European customer sales of $102m in the quarter accounted for 19% of the company's overall sales.

Subscription and support sales increased 38% year-on-year to $509m from $369m in 2010. Professional services sales reached $36.7m, an increase of 45% compared to the same period in 2010.

The firm also increased its headcount by over 800. It now has 6,352 staff.

CW+

Features

Enjoy the benefits of CW+ membership, learn more and join.

Read more

0 comments

Oldest 

Forgot Password?

No problem! Submit your e-mail address below. We'll send you an email containing your password.

Your password has been sent to:

-ADS BY GOOGLE

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

SearchDataManagement

Close