News Column

Salesforce announces huge revenue increase

August 22, 2014

JOSEPH MILLIS



CLOUD computing software giant Salesforce.com yesterday reported better-than-expected quarterly revenue, helped by an increase in demand for its web-based sales and marketing software.


The San Francisco-based company raised its full-year profit and revenue forecast.


Spending on enterprise resource management (ERM) and customer relationship management (CRM) has been particularly strong.


Research firm IDC expects ERM and CRM software sales to grow 20 per cent at a compounded annual rate every year from 2013 to 2018.


Salesforce said it expected an adjusted profit of 50-52 cents per share on revenue of $5.34bn (322bn) to $5.37bn for the year ending 31 Jan.


It had previously forecast an adjusted profit of 49-51 cents on revenue of $5.30bn to $5.34bn. The company said unbilled revenue rose by about one-third to $5bn at the end of the second quarter.


"We continue to see greater upside potential in the second half as our checks suggest there are mega-deals in the pipeline that could close," Susquehanna analyst J. Derrick Wood said in a note.


Salesforce is the biggest tenant in Heron Tower at 110 Bishopsgate in the City and it wants the building to be renamed the Salesforce Tower.


However, several tenants, including a rival tech firm Powa Technologies, are unhappy at having to use another company's name in their details.


For more stories covering the world of technology, please see HispanicBusiness' Tech Channel



Source: City A.M. (UK)


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