Why ExactTarget Inc (ET) Is a Great Fit for salesforce.com, inc. (CRM)

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Naturally, Salesforce will take an earnings hit in its current fiscal 2014 Q2 (and for the year) as it absorbs the expenses associated with an acquisition of this magnitude. For fiscal 2014, salesforce.com, inc. (NYSE:CRM) expects a reduction in non-GAAP earnings by an estimated $0.16 a share, and about $0.05 a share in its current fiscal Q2. Salesforce’s revenue expectations for the year, which were in the $3.835 billion to $3.875 billion range, have been revised upwards to $3.955 billion to $4.0 billion.

Now what?
At nearly seven times ExactTarget Inc (NYSE:ET)’s expected 2013 revenue, $2.5 billion is a pretty steep price for salesforce.com, inc. (NYSE:CRM)to pay — there’s no denying that. But the acquisition isn’t about this quarter, or even this fiscal year; this deal’s about positioning Salesforce for the explosive growth in cloud-based digital marketing over the next five years (and beyond). And from that perspective, investors shouldn’t be too quick to condemn Salesforce for the move, but look at it for the opportunity it represents.

The article This Is Why ExactTarget Is a Great Fit for salesforce.com originally appeared on Fool.com.

Fool contributor Tim Brugger has no position in any stocks mentioned. The Motley Fool recommends Coca-Cola, Gartner, Nike, and Salesforce. The Motley Fool owns shares of Nike.

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