Salesforce Q2’14 Financial Results – No Respect

When a bold, trend-setting company such as Salesforce earns the respect of the Wall Street financial community then maybe we truly have reached the point that “The Cloud” is recognized as a legitimate business model and not just a ‘fad’.  Nowadays, Salesforce is treated just as another company when analyzing their quarterly financial results.

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Salesforce is still not a profitable company; yet.  However, with consistently improving business, which is more sustainable than selling traditional on-premise software by-the-way, the future is bright.  They are focused on ‘growth’ versus ‘profit’ now.  If this trend continues from $-0.16 Earnings Per Share (EPS) last quarter to $-0.10 EPS this quarter it shouldn’t be too long before they are profitable.

At that inflection point it will be absolutely interesting to see how explosive the Company might grow considering the solid foundation they would have built and the unbelievable scalability of this type of Software-as-a-Service (SaaS) business model.

Below is a link to a Forbes article the summarizes Salesforce’s Q2’14 Finanical Results:

http://www.forbes.com/sites/alexkonrad/2014/08/21/salesforce-narrowly-beats-expectations-in-q2/

By almost every metric the company improved the flow of cash coming into the company by somewhere between 30% and 40%. Cash was up 34% to $246 million; deferred revenue up 31% to $2.35 billion. Unbilled and deferred revenue that the company has under contract but won’t appear on the books yet stands at $5 billion, up 32%, while Salesforce is now projecting full-year growth of between 31% and 32%, with its guidance inched up $30 million to $5.34 billion to $5.37 billion.

#CloudIsAFad and #SaaSIsAFad.com

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Salesforce (report of $140 million from State Farm Insurance) and Concur $1.4 billion from GSA

As of my writing this blog, 8/13/2012, this news is only a rumor so I want to preface my post, but Salesforce.com reported scored a $140 million dollar deal from State Farm Insurance:

http://allthingsd.com/20120813/salesforce-com-just-landed-its-biggest-deal-ever-but-cant-brag-about-it/?reflink=ATD_yahoo_ticker

What isn’t rumor is that Concur was awarded a $1.4 billion dollar contract from the General Service Administration (GSA) to provide online travel booking, authorization and voucher-processing services for the next 15 years.

http://www.bizjournals.com/seattle/news/2012/06/05/concur-wins-14b-government-contract.html?ana=yfcpc

The Fad of the Cloud is getting ever-so murky!  #CloudIsAFad