Thursday, September 8, 2011

Salesforce.com: Market Ignores Expenses Growing Faster Than Revenue

When reading through the recent Salesforce.com (CRM) Dreamforce Analyst Session presentation (obtain from the upper right hand corner box), a reader should be constantly struck by the desire to grow at all costs. Both Sales & Marketing and Research & Development costs soared beyond the rate of revenue growth. Another striking point is slide 55 that shows how the FY12 Guidance Midpoint for revenue has increased by $185M or roughly 9% while the Non-GAAP EPS has dropped. Now the earnings drop is mostly associated with the purchase of Radian6, but it further highlights how CRM is buying revenue.


Read the full article at Seeking Alpha.

Disclosure: Long MSFT. Please review the disclaimer page for more details.




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