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CRM - Salesforce.com Inc - Q2 2014 Earnings Call Transcript

    I have really never been so excited about salesforce.com and everything that's going on with the company. And that's why I am so delighted to get on the call with everybody today. We're having an outstanding year of growth and I am absolutely delighted to share our second quarter results right now.

    Revenue for the second quarter rose 31% from a year ago to $957 million, and in constant currency revenue grew even faster at 32%. No other software company, that is no other enterprise software company of our size, is growing faster. And deferred revenue rose by more than 30% year over year, finishing the quarter at nearly $1.8 billion, just outstanding.

    Operating cash flow exceeded $180 million for the quarter, an increase of more than 30% year over year and the dollar value of booked business on and off the balance sheet now tops 5.6 billion, also up more than 30% year over year.

    Based on these fantastic results, I am thrilled to announce that just four years after delivering our first $1 billion year, we expect to break through our first ever $1 billion quarter. In the third quarter of fiscal 2014, our next quarter, an amazing milestone for Salesforce.com and for the entire cloud computing industry.

    In addition, we are once again raising our full fiscal year 2014 revenue guidance . The high end of our guidance puts this on taste to deliver fiscal year 2014 revenue of $4.025 billion with a full year growth rate of 32%, just spectacular growth.

    Salesforce has always been a catalyst and evangelist for innovation enterprise software. We pioneered the shift to the cloud, to social, to mobile and we've been recognized for innovation by Forbes Magazine, who just ranks Salesforce.com as the most innovative company in the world for a third year in a row. Congratulations to the entire team at salesforce.com for this incredible achievement.

    Now more than ever companies are turning to Salesforce.com as their platform for innovation. With our social and mobile and cloud technologies, our customers are connected with their customers in entirely new ways and they are becoming customer companies. Customer companies have a deeper connection with their customers, they can market on any channel, sell as a team, service customers everywhere and with the next generation customer platform, customer companies can connect everything on the internet of things.

    With our four product lines, sales cloud , service cloud , marketing cloud and the Salesforce platform, our customers have the tools to become customer companies and unlock greater levels of growth, innovation and success, they can go faster. That's why our customers have made Salesforce.com, the world's number one CRM platform and then clear leader in each of our core four markets.

    Our flagship sales cloud is now the number one app in the world for sales and it's helping customers drive phenomenal sales performance and top-line growth. That's why Gartner once again named us as the undisputed leader in its Magic Quadrant for sales force automation for the seventh year in a row.

    In addition to the incredible capabilities from Work.com and Data.com, the sales cloud now delivers a complete lead-to-close solution with Pardot fully integrated into the sales cloud giving our customers one of the leading apps in B2B marketing automation and the unique asset from our acquisition of ExactTarget we couldn't be more thrilled to Pardot and how it brings a full range of marketing, campaign management and solutions deeply embedded into our sales cloud .

    The service cloud is now the world's number one app for customer service and support and the only platform that ties customer service with sales and social. And that's why Gartner direct salesforce.com is the clear leader in both vision and execution in its most recent Magic Quadrant for customer service, making us again the number one solution for customer service.

    And I am excited to announce that we doubled down on the marketing cloud this quarter with the acquisition of ExactTarget, the largest acquisition in our history. We believe that ExactTarget, marketing cloud will define the future of marketing. It is a powerful one-to-one customer platform that makes it possible for companies to bring in customer data from any source and deliver highly personalized digital marketing to any customer across any channel.

    With the combination of ExactTarget, Radium 6, Buddy Media and social.com, we have the platform of choice for CMOs who are powerful and are powerhouse in marketing across email, social web, and mobile. And the Salesforce platform is the world's number one platform for developing enterprise cloud apps and the only platform with built-in social and mobile capabilities right at the core.


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