Salesforce’s cash, debt, and cash flow
Previously in this series, we discussed how growth in Salesforce’s (CRM) deferred and unbilled deferred revenue added to the strength of its sales pipeline and enabled the company to raise its guidance for the current quarter and fiscal 2017.
Fiscal 1Q17 marked the eighth straight quarter in which Salesforce managed to expand its non-GAAP (generally accepted accounting principle) operating margins. Now, let’s look at the company’s cash, debt, and cash flow position in fiscal 1Q17.
As of April 30, 2016, Salesforce had cash, cash equivalents, and marketable securities worth $2.0 billion. It has a total debt of $1.3 billion. Salesforce doesn’t have any short-term debt. The expansion of Salesforce’s non-GAAP operating margin by 283 basis points in fiscal 1Q17 helped the company record an operating cash flow of $1.1 billion—an increase of 43% on a year-over-year basis. Unlike cloud space peers Microsoft (MSFT), Oracle (ORCL), and IBM (IBM), Salesforce doesn’t pay a dividend.
Fiscal 2Q17 and 2017 expectations
For fiscal 2Q17, Salesforce expects revenue and EPS (earnings per share) in the range of $2.01 billion to $2.02 billion and $0.24 to $0.25, respectively.
Salesforce has upped its guidance for fiscal 2017. In its fiscal 2016 earnings release, the company set revenue and EPS guidance of $8.08 billion to $8.12 billion and $0.99 to $1.01, respectively. Now, in its fiscal 1Q17 earnings release, Salesforce expects revenue and EPS to be $8.16 billion to $8.2 billion and $0.24 to $0.25, respectively, for fiscal 2017.
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