Salesforce.com (CRM)

Salesforce.com (CRM)

Postby iam802 » Thu Feb 26, 2009 10:24 am

Salesforce hits US$1billion revenue.

===
UPDATE 3-Salesforce profit, outlook beat expectations

http://www.reuters.com/article/marketsN ... 226?rpc=44

* Q4 EPS 11 cents beats Street view 7 cents

* Sees Q1 EPS 10-11 cents vs Street view 10 cents

* Sees FY09 EPS 54-55 cents, beats Street view of 50 cents

* Deferred revenue ahead of expectations

* Shares rise 5 pct in after-hours trading (Adds CEO comment, earnings details, byline; updates stock)

By Jim Finkle

BOSTON, Feb 25 (Reuters) - Business software maker Salesforce.com Inc (CRM.N) posted quarterly earnings that nearly doubled and gave a full-year profit outlook that topped Wall Street projections, sending its shares up 5 percent in extended trade.

The results and outlook defied expectations among some investors, who thought Salesforce would post weaker-than-expected results due to the slowdown in global technology spending.

Still, company executives said they expect a rise in the percentage of subscriptions to its Web-based business software programs that get canceled this year. That attrition rate has historically been below 1 percent per month.

Chief Executive Marc Benioff declined in an interview to say how much he expects the rate to rise this year, nor specify the rate used to calculate the company's revenue forecasts.

Salesforce books revenue from its multi-year subscriptions quarter-by-quarter over the life of those contracts, and Wall Street pays close attention to the as-yet-unused part, called deferred revenue, as an indication of future business.

"The whisper was that it was a terrible quarter for deferred. There had been some strong negativity surrounding the stock," Wedbush Morgan analyst Michael Nemeroff said.

Salesforce, however, reported that billed deferred revenue rose 24 percent to $594 million for the quarter ended Jan 31. Total deferred revenue, which includes unbilled bookings, rose to $1.3 billion from $1.0 billion a year earlier.

The software maker, whose flagship product helps businesses manage sales activities, said it won several large accounts away from companies that had been using Oracle's Siebel customer relationship management software.

They included hardware maker EMC Corp (EMC.N), which Benioff said is going to move 17,000 workers from Siebel to Salesforce software.

A spokeswoman for Oracle declined to comment. Officials with EMC weren't immediately available for comment.

Salesforce said fiscal fourth-quarter net profit rose to $13.8 million, or 11 cents a share, from $7.4 million, or 6 cents a share, a year earlier. Analysts had expected profit per share of 7 cents, according to Reuters Estimates.

Revenue at the software maker -- which competes with SAP AG (SAPG.DE), Microsoft Corp (MSFT.O), Oracle Corp (ORCL.O) and NetSuite Inc (N.N) -- jumped 34 percent to $290 million, versus the average analyst estimate of $285 million.

Nemeroff said investors were pleased with the San Francisco-based company's revenue outlook because Salesforce is conservative in its sales forecasts and generally reports figures above the high end of its estimates.

Investors have also worried that Salesforce would be forced to boost discounts on its products as the economy weakened, but the software maker said that has not been the case.

"We're of course flexible with how we price with all customers, but we have seen no change," Benioff said.

Salesforce forecast first-quarter profit of 10 to 11 cents per share, versus the average Wall Street estimate of 10 cents. It projected quarterly revenue of $304 million to $305 million, compared with analysts' average forecast of $306 million.

Its full-year profit forecast of 54 cents to 55 cents exceeds analysts' average estimate of 50 cents. It forecast annual revenue of $1.30 billion to $1.33 billion, versus analysts' average estimate of $1.33 billion.

Salesforce shares rose 5 percent to $29.56 in extended trading from their New York Stock Exchange close at $28.10.

The stock hit a 52-week low of $20.85 in November amid concerns that fourth-quarter sales would be weak, causing growth in deferred revenue to slow. (Reporting by Jim Finkle; Editing by Bernard Orr, Richard Chang)

1. Always wait for the setup. NO SETUP; NO TRADE

2. The trend will END but I don't know WHEN.

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Re: Salesforce.com (CRM)

Postby iam802 » Wed Apr 07, 2010 9:18 pm

Salesforce.com (CRM) have a very nice retracement over the last few days that see it dip below the Tenkan sen follow by a nice breakout of the resistance at $77.48.

Leading kumo support is thick at around $73.48

Image
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2. The trend will END but I don't know WHEN.

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Re: Salesforce.com (CRM)

Postby iam802 » Fri Aug 27, 2010 4:37 pm

Marc Benioff reported Salesforce.com results on August 19 with the following quotes:

Second quarter revenue of $394 million rose 25% year-over-year. Even with an annual revenue run rate approaching $1.6 billion, our revenue growth is accelerating. At 25%, second quarter revenue rose at its fastest rate in six quarters and it represents the third quarter in a row in which growth rate has now increased.

Non-GAAP EPS of $0.29 was well above our outlook entering the quarter. GAAP EPS was $0.11.
We also delivered roughly $76 million in operating cash flow, an increase of more than 66% from a year ago. Over the past 12 months, our business has generated more than $340 million of operating cash and we exited the quarter with roughly $1.9 billion of cash, cash equivalents and marketable securities.

Finally, I am pleased today to announce that we are raising the high end of our full year fiscal year ‘11 revenue guidance to $1.6 billion. This is a huge new milestone for Salesforce.com.


As we can see from the chart below, the market responded positively with a gap-up and high volume trades.

Currently, we are seeing some consolidation which is a good sign as the general market is bearish. This suggests the positive outlook for Salesforce.com

We should be able to find a good entry during the consolidation. After which, it should break up to the high side.

Image
1. Always wait for the setup. NO SETUP; NO TRADE

2. The trend will END but I don't know WHEN.

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Re: Salesforce.com (CRM)

Postby kennynah » Fri Aug 27, 2010 5:07 pm

Depends on whether it ends up becoming an " island reversal ", so better to wait n see how the formation pans out
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Re: Salesforce.com (CRM)

Postby iam802 » Thu Sep 02, 2010 1:18 am

Just a trade review.

===
I mentioned about Salesforce.com (CRM) previously and about its consolidation.

I was late in the game and did not manage to catch CRM when they announced earnings.

As mentioned in my previous post on CRM, I am expecting that it will consolidate before moving up further.

The key is to find another entry point.

August 27 (very same night) proves to be a good entry point as CRM dips down and shortly goes back above the level of 109.73

The general market condition wasn’t clear on its direction.

I was not at all convinced that CRM will be able to make a new high if the broader market is down.

What I did was to sell a vertical Sept 105/110 put.

This provides me with some buffer if I am wrong about CRM. At the same time, I make a bet on its bullish move with time on my side.

Today, with the broader market rally, CRM was able to break through resistance 113.77 and establish new high.

If the broader market bullish move holds, I estimate that CRM should be able to hit a target price of 121 by end September.

Let’s keep my fingers crossed and see if this estimate will work out.

Image
1. Always wait for the setup. NO SETUP; NO TRADE

2. The trend will END but I don't know WHEN.

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Re: Salesforce.com (CRM)

Postby kennynah » Thu Sep 02, 2010 1:27 am

today would have been a good day to turn your short vertical into an iron condor...ie, add a new short a vertical call...and you dont need to pledge additional margin as you've done so with that short put vertical already....not too late though...as long as the IV jumped into the sky today, and is still much higher than daily average...you might wana consider ...perhaps short sept 125/130 call...if it makes sense to you....
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Re: Salesforce.com (CRM)

Postby iam802 » Thu Sep 02, 2010 1:33 am

Great suggestion. Will do that.

Kopi on me.
1. Always wait for the setup. NO SETUP; NO TRADE

2. The trend will END but I don't know WHEN.

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Re: Salesforce.com (CRM)

Postby iam802 » Fri Nov 19, 2010 10:38 pm

strike lottery.

gap up $16 on option expiration.
1. Always wait for the setup. NO SETUP; NO TRADE

2. The trend will END but I don't know WHEN.

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Re: Salesforce.com (CRM)

Postby kennynah » Sat Nov 20, 2010 3:21 am

wah .... ho say liao liddat....

congrats.... it's a merry merry x'mas in advance :lol:
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Re: Salesforce.com (CRM)

Postby winston » Sat Nov 20, 2010 11:10 am

Not vested

Our Recommendation

Salesforce.com has reported decent third quarter fiscal 2011 results. It has provided an encouraging guidance for the fourth quarter and raised the full-year 2011 estimates based on improving fundamentals.

We, however, caution investors about tough competition in the CRM application and cloud computing market. IT spending is showing signs of revival and the company has slowly started reaping the benefits of the recovery.

http://www.dailymarkets.com/stock/2010/ ... e-and-eps/
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