Salesforce.com Inc. (NASDAQ: CRM)
Salesforce Inc. (CRM) a customer relationship management software company today announced its fiscal 2015 second quarter results.
Salesforce.com Earnings and Outlook
Total Q2 revenue was $1.63 billion, an increase of 24% year-over-year, and 28% in constant currency. Subscription and support revenues were $1.52 billion, an increase of 23% year-over-year. Professional services and other revenues were $113 million, an increase of 32% year-over-year. Cash generated from operations for the fiscal second quarter was $304 million, an increase of 24% year-over-year. PR Newswire
Salesforce.com CEO’s Comments
“Salesforce has now blown past the $6.5 billion annual revenue run rate faster than any other enterprise software company, and we are once again raising our fiscal year 2016 revenue guidance to $6.625 billion at the high end of our range,” said Marc Benioff, Chairman and CEO, Salesforce. “That puts us on pace to reach a $7 billion run rate later this year, and our goal is to be the fastest to reach $10 billion in annual revenue.” PR Newswire
“Also in this quarter we became a Fortune 500 company. That’s really exciting for Salesforce, one of the 500 largest companies in the world. A huge milestone. Congratulations to all of our customers, our partners and employees in this incredible job. We continue to be in the fastest growing Top 10 enterprise software company. And many of you projected that we’re going to go from being the sixth largest software company in the world to the fourth largest next year. That’s awesome. That is next year, only Microsoft, Oracle and SAP are bigger than Salesforce. That is incredible. And then of course, we’re going onto our next goal, which is to become the third largest software company in the world, first by market cap and then by revenue. Then only Microsoft and Oracle are going to be larger than Salesforce. It’s just amazing.” Yahoo Finance
CRM Technical Analysis
CRM gapped up in price today to $69.00 up from yesterday’s close of $67.82 which is a 2% increase based on positive earnings announcement. Taking a look at the daily chart we can see four days ago on Aug 17 the stock was trading at $74.04. Taking a further look down the chart we can see a pattern has been developing with the stock that has formed a strong resistance level between $74 and $75. The stock has reached $75 four times dating back to April 29 (May 7,22, and June 18) and each time could not maintain the level. More recently the stock has tested $74 four times dating back to the first time on July 21(July 24,28 and Aug 17) and also has not been able to break thru the level. The pre market high for the stock was $70.80 and it opened at $69 so it gave back $1.80 which is about 3%. This concerns me a bit as it exceeds the amount of the gap up today. For trading purposes my entry point would be $70.00, with a possible add on at the pre market highs of $70.80. My stop loss would be the gap up price of $69.00 fearing anything below that and the stock will fill in the gap up.
Company Profile
Salesforce.com, inc. provides enterprise cloud computing solutions, with a focus on customer relationship management to various businesses and industries worldwide. The company offers enterprise cloud computing apps and platform services, including Sales Cloud for sales force automation, which enables companies to store data, access accurate customer and prospect information, track leads and progress, forecast opportunities, and collaborate around any sale on desktop and mobile devices; Service Cloud that enables companies to connect address customers service and support needs; and Marketing Cloud, which enables companies to map customer journeys to digital marketing interactions through email, mobile, social, Web, and connected products. It also provides Community Cloud, a platform to engage specific group of people with access to relevant information, apps, and experts; Analytics Cloud, an app and platform to deploy sales, service, marketing, and custom analytics apps using any data source; Salesforce1 Platform, a cloud platform to build apps that manage various business processes. In addition, the company provides professional services, including consulting, deployment, training, implementation, and integration services to facilitate the adoption of its cloud solutions. It sells and markets its services primarily through its direct sales force, as well as through global consulting firms, systems integrators, and regional partners. salesforce.com, inc. was founded in 1999 and is headquartered in San Francisco, California. Yahoo Finance
