Earnings Cheat Sheet: Profit Declines as Revenues Jump 33.8%

Rising costs did not help S&P 500 (NYSE:SPY) component, inc. (NYSE:CRM) in the first quarter as profit dropped from a year earlier., Inc. is a cloud computing company, which provides customer relationship management (NYSE:CRM) products to businesses. It offers a technology platform for Internet-based computing, storage and connectivity solutions for customers and developers.

Don’t Miss: Wall St. Cheat Sheet’s newest Feature Trades of the Month!, inc Earnings Cheat Sheet for the First Quarter

Results: Net income for, inc. fell to $530,000 (0 cents/share) vs. $17.7 million (13 cents/share) a year earlier. A decline of 97% from the year earlier quarter.

Revenue: Rose 33.8% to $504.4 million YoY.

Actual vs. Wall St. Expectations: CRM reported adjusted net income of of 28 cents/share. By that measure, the company beat the mean estimate of 27 cents/share. Estimates ranged from 26 cents per share to 28 cents per share. It beat the average revenue estimate of $482.4 million.

Quoting Management: “ has become the first enterprise cloud computing company to reach a $2.0 billion annual revenue run rate,” said Marc Benioff, Chairman and CEO. “We are delighted to see our revenue growth rate continue to accelerate.”

Key Stats: The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 28.2%, with the biggest boost coming in the most recent quarter when revenue rose 33.8% from the year earlier quarter.

From the fourth quarter of the last fiscal year, the company’s current liabilities rose to $1.69 billion from $1.28 billion.

Gross margin shrunk 1.4 percentage points to 79.6%. The contraction appeared to be driven by rising costs as the figure rose 44% from the year earlier quarter while revenue rose 33.8%.

The company has now seen net income fall in each of the last two quarters. In the fourth quarter of the last fiscal year, net income fell 46.5% from the year earlier quarter.

The company beat estimates last quarter after being in line with expectations in the fourth quarter of the last fiscal year with net income of 12 cents per share.

Competitors to Watch: Microsoft Corporation (NASDAQ:MSFT), Google Inc. (NASDAQ:GOOG), Oracle Corporation (NASDAQ:ORCL), Servicesource Intl. Inc (NASDAQ:SREV), SAP AG (NYSE:SAP), NetSuite Inc. (NYSE:N), Intl. Business Machines Corp. (NYSE:IBM), Pegasystems Inc. (NASDAQ:PEGA), LivePerson, Inc. (NASDAQ:LPSN), Apple (NASDAQ:AAPL) and Constant Contact, Inc. (NASDAQ:CTCT).

Stock Performance: Shares of CRM are up 7.5% after hours.

Don’t Miss Wall St. Cheat Sheet’s newest Feature Trades of the Month!