Salesforce.com: Revenue Growth Up, But Not Profits
Updated · Nov 15, 2010
Salesforce.com (CRM) was open for business before the first dot-com crash and survived.
According to this Forbes report, this customer relationship management software outfit continued on much like a start-up, its revenues growing rapidly but profits—not so much.
“Mark Benioff, co-founder and CEO, who happens to be a billionaire thanks to his roughly 10% stake, understandably likes to talk about revenue growth. ‘We’re delighted today to raise our full fiscal year 2011 revenue guidance,’ Benioff said in announcing second quarter results, with revenue up 25%. He called the projection of about $1.6 billion in revenue an ‘exciting new milestone.’
“Less exciting was the bottom line for the second quarter, 11 cents a share, down (yes, down) from 17 cents a year earlier. And the full-year projection he made at the time, 43-to-45 cents, also down from 63 cents for the year ended January 31.”