What SaaS Products Built On Salesforce.Com’s PaaS Have Gained Substantial Traction?

Earlier this week, Salesforce.com (NYSE: CRM) announced its fourth quarter results. While the company outpaced market expectations for the quarter, its weak outlook has sent the stock falling. In the after-hours trading session, its stock slipped 3%.

Salesforce’s Financials

Salesforce’s fourth quarter revenues grew 26% over the year to $3.6 billion, above analyst projections of $3.56 billion. Salesforce reported billings of $6.42 billion. Net income grew an impressive 76% over the year to $362 million. Adjusted EPS came in at $0.70, compared with the Street’s forecast of $0.55 for the quarter.

By segment, Subscription and support revenues grew 26% to $3.38 billion, and professional services and other revenues grew 16% to $228 million.

Among other metrics, Salesforce’s unearned revenue or business that has been booked, but not delivered, grew 22% to $8.56 billion. Total Remaining Performance Obligation of revenues grew 25% to $25.7 billion.

For the year, Salesforce saw revenues grow 26% to $13.28 billion with subscription and support revenues growing 27% to $12.41 billion and professional services and other revenues growing 12% to $869 million. It ended the year with GAAP diluted earnings of $1.43 and non-GAAP diluted earnings of $2.75 per share.

Within the subscription business, Salesforce ended the year with sales cloud business growing 13% to $4 billion. Service cloud revenues grew 26% over the year to $3.6 billion and its platform and other revenues grew an impressive 49% to $2.9 billion. Marketing cloud and commercial cloud business also reported a strong 37% growth to $1.9 billion.

For the current quarter, Salesforce forecast revenues of $3.67-$3.68 million with an adjusted EPS of $0.60-$0.61 versus analyst estimates of EPS of $0.63 on revenue of $3.7 billion. The market was looking for revenues of $3.69 billion with an adjusted EPS of $0.63. Salesforce expects to end the current year with revenues of $15.95-$16.05 billion and an adjusted EPS of $2.74-$2.75. The Street had forecast revenues of $15.97 billion with an EPS of $2.75 for the year.

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