salesforce.com, inc. (CRM) Living Up to its Name?

Page 1 of 2

Cloud computing is one of the hottest buzzwords in the tech sector at the moment. This relatively new technology allows users to access computing resources through a network, and according to proponents, allows for greater scale advantages and improved efficiency. salesforce.com, inc. (NYSE:CRM) is widely considered the leader in the cloud computing space, and is growing its top line very impressively.

The firm offers sales and marketing solutions to big hitters such as The Coca-Cola Company (NYSE:KO) and McDonald’s Corporation (NYSE:MCD), and has recently pulled in a few more high-profile contracts. The most recent earnings report showed strong sales and revenue growth, but some analysts are wondering how well management is doing on the bottom line.

Q4 Earnings

Salesforce.com (CRM)In the most recent release, salesforce.com, inc. (NYSE:CRM) delivered top- as well as bottom-line performance that exceeded analyst expectations. In fact, the firm has one of the fastest top-line growth rates in the tech sector, and was recently named the world’s No. 1 most admired software company by Fortune magazine. Sales for the quarter were up a huge 32% year over year to $835 million.

For the full year, the company delivered revenues in excess of $3 billion, representing a rise of 35% from fiscal 2012. Another highlight from the report was the strong operating cash flow, which rose 17% to over $280 million. Based on these strong results, the company upped its guidance for fiscal 2014, now expecting revenues of between 3.82 and 3.87 billion dollars.

While the top-line growth is very impressive, there are some problems on the company’s bottom line. Due to stock-based compensation expenses and a one-time tax charge, the firm delivered a net loss of $20.8 million, versus a net loss of $4.08 million a year earlier. Excluding these items, salesforce.com, inc. (NYSE:CRM) reported EPS of 51 cents, beating the consensus of 40 cents.

Growing Competition

Despite salesforce.com, inc. (NYSE:CRM)’s position as a pioneer of the cloud software and marketing space, the firm is facing growing competition from the likes of SAP AG (ADR) (NYSE:SAP), a German competitor, and Oracle Corporation (NASDAQ:ORCL). These rivals are pumping a great deal of money into acquisitions meant to challenge Salesforce’s software solutions. At the end of last year, Oracle acquired Eloqua, a provider of cloud-based marketing automation, for about $871 million.

SAP has released a number of cloud marketing solutions of its own, and while it joined the game a little later, it seems to be making some decent progress. The firm now offers a CRM rapid deployment package for sales, marketing, and services, as well as an SaaS package targeting sales representatives. These developments are provoking Salesforce to come up with acquisitions of their own in order to keep up.

Soaring Valuations

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!