WASHINGTON (dpa-AFX) - Cloud computing solutions provider Salesforce.com (CRM) Thursday posted a wider loss for the first quarter after incurring stock-based compensation expense and other costs. However, excluding items, adjusted earnings improved from a year ago and and were in line with Wall Street estimates. Revenues for the quarter surged 28 percent and topped expectations, on robust subscription growth.
Salesforce.com raised its revenue outlook for fiscal year 2014, but said the bottom-line will essentially be impacted by stock-based compensation expense. Shares of the company dropped stock fell about seven percent in after-hours trade on the New York Stock Exchange.
Salesforce.com provides enterprise cloud computing applications such as customer and collaboration relationship management to businesses. Some of its bigger rivals include Oracle Corp. (ORCL) and Sap AG (SAP).
The San Francisco, California-based company posted a quarterly net loss of $67.7 million or $0.12 per share, compared with a net loss of $19.5 million or $0.04 per share last year.
Results for the quarter include stock-based compensation expense of $115 million, and amortization costs of $24 million, among other items.
Excluding items, adjusted earnings for the quarter were $61 million or $0.10 per share, compared with $54.5 million or $0.09 per share a year ago.
On average, 40 analysts polled by Thomson Reuters expected earnings of $0.10 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter grew 28 percent to $892.6 million from $695.5 million in the prior year. Analysts had a consensus revenue estimate of $887.08 million for the quarter.
Subscription and support revenues for the quarter grew 29 percent to $842 million, while Professional services and other revenues were up 25 percent at $50 million.
Total expenses for the quarter increased to $728 million from $566 million a year ago, and reflects the stock-based compensation expenses, as well as increased research and marketing costs.
Provision for income tax totaled $13.8 million, compared with a benefit of $5 million in the prior year.
As of April 2013, the company had deferred revenue of $1.73 billion, up 30 percent from a year ago.
For the second quarter, Salesforce.com expects a loss of $0.07 to $0.06 per share, adjusted earnings of $0.11 to $0.12 per share, and revenues of $931 million to $936 million. Analysts currently estimate earnings of $0.12 per share on revenues of $934.56 million.
Net loss guidance includes an expected impact of about $0.19 per share related to stock-based compensation expense.
For fiscal year 2014, the company now expects a loss of $0.33 to $0.31 per share, adjusted earnings of $0.47 to $0.49, and revenues of $3.835 billion to $3.875 billion. The earnings guidance reflects the four-for-one split of its common stock that Salesforce.com's board approved in March.
Earlier, the company had estimated a loss of $1.22 to $1.18 per share, adjusted earnings of $1.93 to $1.97 per share, and revenues of $3.82 billion to $3.87 billion for fiscal year 2014.
Analysts currently expect earnings of $0.49 per share on revenues of 3.87 billion for the year.
Guidance for the year reflects an expected impact of $0.78 per share related to stock-based expense.
Salesforce.com closed Thursday at $45.69, down 0.20%, on a volume of 11 million shares on the NYSE. In after hours, the stock dropped $3.07 or 6.72% at $42.62. In the past year, the stock traded in a range of $30.05 - $47.581.
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