Salesforce.com Loss Widens, Q3 Forecast Falls Short

by Christopher Freeburn | August 24, 2012 11:38 am

Salesforce.com (NYSE:CRM[1]) announced on Thursday a second-quarter loss[2] of $9.9 million, twice the size of the $4.3 million loss it reported in the same period last year. Revenue increased to $731.6 million, up 34% from last year, and topping analysts who expected $728 million, Reuters noted.

Adjusted EPS, which excluded executive compensation charges of $85 million, was 42 cents for the quarter. That beat Wall Street’s estimate of 39 cents a share.

Salesforce said it anticipates earnings for the third quarter of between 31 cents and 32 cents a share. Analysts were expecting earnings of 34 cents a share in the current quarter.

CRM shares rose about 1% in Friday morning trading.

Company officials boosted their outlook for the year, projecting earnings for fiscal 2013 of between $1.48 and $1.51 a share.

Salesforce is facing a price war with SAP (NYSE:SAP[3]) and Oracle (NASDAQ:ORCL[4]), which may reduce profits. Earlier this year, it agreed to purchase social advertising company Buddy Media for $689 million. Company officials have brushed off criticism over the purchase, saying the acquisition of social media assets is necessary in the current highly competitive environment.

Endnotes:
  1. CRM: http://studio-5.financialcontent.com/investplace/quote?Symbol=CRM
  2. a second-quarter loss: http://in.reuters.com/article/2012/08/24/us-salesforce-results-idINBRE87M10N20120824
  3. SAP: http://studio-5.financialcontent.com/investplace/quote?Symbol=SAP
  4. ORCL: http://studio-5.financialcontent.com/investplace/quote?Symbol=ORCL

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