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Salesforce.com: Why It Is Moving Forward

May 28, 2014 | About:

Salesforce.com (NYSE:CRM) provides solutions to various businesses and industries worldwide. It offers social and mobile apps and platform services. The company’s Sales Cloud solutions enable companies to grow their sales pipelines and gain insights. Its Marketing Cloud solution makes companies to bring in data from any source and deliver personalized interactions to customers across any channel. The company also offers the Salesforce 1 Platform for the development of customer apps. Salesforce.com was founded in 1999 and is headquartered in San Francisco, Calif.

Numbers at a Glance

Salesforce.com is the world’s largest provider of enterprise cloud computing solutions. In the first quarter of fiscal 2015, the company’s revenue grew 37% from a year ago to more than $1.2 billion. Its operating cash flow grew by 67% from a year ago to more than $470 million. It was able to deliver a non-GAAP earnings per share of $0.11. This exceeded the company’s guidance.

Positive Outlook

For the full year, Salesforce.com hopes to deliver 125 basis points to 150 basis points of operating margin improvements. The company is raising its full-year fiscal year 2015 guidance by $40 million to reach $5.34 billion. Salesforce.com expects its full-year non-GAAP earnings per share to be in the range of $0.49 to $0.51. For the next quarter, the company expects its revenue to be in the range of $1.25 billion to $1.29 billion, representing a year-on-year growth of approximately 34% to 35%.

In the first quarter, Salesforce.com entered into a new relationship with Manulife, a financial services and insurance provider. Manulife selected Salesforce’s Service Cloud to create a single customer engagement platform across all its products.

Salesforce.com also partnered with Meiji Yasuda Life Insurance to allow clients to close deals and service customers right from their phones. Sky Italia also selected Salesforce’s solutions for Sky’s communication business from call centers to partner channels. These partnerships will help Salesforce.com to boost its revenue.

Head to Head

Salesforce.com faces a stiff competition from Oracle (NYSE:ORCL) and Amazon (NASDAQ:AMZN). Compared to its rivals, Salesforce.com has the advantage of a strong connection with customers, and it has consistently delivered the world’s best customer platforms. In addition, Salesforce.com has a wide geographic reach in the U.S.

Wings Across the World

Salesforce.com has been establishing different data centers around the world since it opened its first in Singapore in July 2009. In other words, the company’s strategy is also geared toward an international expansion.

A Glance at China

Salesforce.com partnered with ChinaCache in the area of application deliveries for China. ChinaCache will use the solutions of Salesforce.com to optimize its internal operations. The arrangement will reduce ChinaCache’s cost and help improve its efficiency by delivering an integrated sales environment.


Salesforce.com has a lot of traction in Japan. It shelled out $170 million to fully acquire its Japanese subsidiary, Salesforce Japan, from SunBridge and other stockholders. Now it has reorganized its team in the country to position it toward growth in the near future.

On a Concluding Note

Salesforce.com is diversified across the important computing segments in the technological industry. Therefore, this leading computing company is well-positioned to meet changes in the sector. Another advantage is its improving revenue. In addition, the company is continuing to innovate and invest in value-added solutions. Conclusively, Salesforce.com is in a good financial position. It has room to grow on the international level. It will continue to provide returns to investors in the near future.

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