Robert W. Baird raised their target price on salesforce.com, inc. from $75.00 to $80.00 and gave the company an outperform rating in a research report on Thursday, June 18th.
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The customer-management software developer posted revenue of $1.63 billion in the period, also beating Street forecasts. Meanwhile, professional services and other revenues grew by 32% YoY to $113 million. The Thomson Reuters estimates for the third quarter called for EPS of $0.18 and $1.6 billion in revenue.
Salesforce now projects $6.6 billion to $6.62 billion in revenue this year – a run rate upgraded by $75 million. It guided revenue at $1.69 billion to $1.7 billion, up 22.5% at the midpoint and ahead of analyst projections of $1.675 billion.
Despite the healthy increase in revenue, Salesforce reported a net loss of $852,000, a stark contrast to the $4m in profit in made in its first quarter three months earlier. The Business provides its options as a service through all the Internet browsers and on mobile devices, on a subscription basis, chiefly and through associates. However, thanks to rapid growth in the Americas, Europe sales now make up just 17% of total revenue, down from 19% previous year.
Revenue of Salesforce has been increasing as businesses are going for easier and cheaper cloud software services; however, higher expenditure, especially on sales personnel, has affected the bottom line. I wouldn’t be shocked if other Wall Street research firms followed suit today.
Out of 46 brokers covering Salesforce.com, 0 rate it a Buy, 0 indicate a Hold while 0 suggest a Sell.
But some analysts said Friday that Salesforce continued to break through on that front, noting that the revenue gain of 24% was ahead of last quarter’s 23%.
The higher number of deal wins and geographical contributions were also encouraging. Moreover, strategic acquisitions and the resultant synergies are expected to benefit over the long run.
(NYSE:CRM) stock surged Friday in the wake of another lauded earnings report for the software maker, as shares defied a broader market downturn.
Companies who have built platforms like Salesforce deliver world-class growth like we’re doing in this quarter.
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This way of doing business, novel when Salesforce started in 1999, is becoming standard among business-software firms-from aging software titans such as Microsoft Corp. and Oracle Corp.to a plethora of young upstarts. Moreover, currency fluctuations and increase in investments in worldwide expansions and data centers could impact the near-term results.
