Revenue rises as demand for cloud services increases
Salesforce.com (CRM) is a San Francisco-based company. It was founded in 1999. It has been steadily acquiring market share from Oracle (ORCL) and SAP (SAP) in the Customer Relationship Management Software segment. It helps firms track and organize sales leads.
Salesforce’s CEO, Marc Benioff, stated that “We’ll go from being the sixth largest software company in the world to the fourth largest next year.” The top three positions globally are held by Microsoft (MSFT), Oracle, and SAP.
For the year ending January 2016, Salesforce has raised its revenue forecast to $6.60–$6.63 billion from $6.52–$6.55 billion previously. For 3Q16, the revenue is expected to be $1.69–$1.70 billion. This is an increase of 23% YoY (year-over-year). The GAAP (generally accepted accounting principles) loss per share is expected to be -$0.02 to -$0.01 while the non-GAAP EPS (earnings per share) is expected to be $0.18–$0.19.
The deferred revenue growth for 3Q16 is expected to rise 25% YoY. The operating cash flow growth for full-year 2016 is expected to be 24%–25% YoY. The firm’s revenue has been rising consistently. Now, it opts for cheaper and easier cloud software services. Salesforce’s net income also took a hit due to increased spending on sales personnel.