Feeds

'I run my business from my phone' says Benioff as Salesforce shovels $93m into the furnace

But irritating adolescent bags more and more sales

The essential guide to IT transformation

Salesforce is in the fortunate business where it can simply raise its cloud-coated hand in the air and a fraction of the trillions of dollar bills being blown around the global economy will stick to it.

At least, that was the message on the enterprise software-as-a-service company's first quarter earnings call for its fiscal 2015 results, with chief executive Marc Benioff running through its "strong financial results" in a nasal drawl.

The company reported total revenues of $1.23bn for its first financial quarter of 2015, up 37 per cent year-over-year, and earnings per share of $0.11, both beating analyst expectations of $1.21bn and $0.10. Of those revenues, $1.15bn came from Salesforce's traditional businesses, with the rest coming from things like platform-as-a-service provider Heroku.

This compares with revenues of $1.072bn in the previous quarter, split between $1bn for core businesses and $72m for fringe ones.

As usual, the company failed to make a profit, and reported a net loss of $92.91m for the quarter, compared with $67.72m a year ago. Part of this was due to a huge jump in marketing and sales expenses to $639.3m from $466.4m in the same quarter a year ago.

Some of these expenses were due to the launch of Salesforce1, a new initiative by the company to tie all of its products together so customers of its money-printing customer relationship management (CRM) tech can simply pull in other features or technologies from products like Heroku or Data.com.

Another reason for the lack of profit is that Salesforce, like Amazon, has supremely patient investors who tolerate multiple quarters of scant profits yet still buy its shares (Salesforce shares traded up 0.83 per cent after it reported earnings).

"Today I run my business from my phone, I could never have imagined that a few years ago," explained Benioff on the call. "At Salesforce we've rebuilt all of our services under the Salesforce1 platform."

In light of the encouraging results, Salesforce raised its projected revenue for the second quarter of 2015 to between $1.285bn and $1.290bn.

Salesforce turned 15 this year and, like any adolescent, infuriates some of the adults it deals with. One party irritated by the company is the US Securities and Exchange Commission, which is currently in a dispute with Salesforce over how it reports its revenues. Salesforce says it plans to get this fixed by the end of 2015. Perhaps it might report a profit then as well? ®

Boost IT visibility and business value

More from The Register

next story
Pay to play: The hidden cost of software defined everything
Enter credit card details if you want that system you bought to actually be useful
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
HP busts out new ProLiant Gen9 servers
Think those are cool? Wait till you get a load of our racks
Silicon Valley jolted by magnitude 6.1 quake – its biggest in 25 years
Did the earth move for you at VMworld – oh, OK. It just did. A lot
VMware's high-wire balancing act: EVO might drag us ALL down
Get it right, EMC, or there'll be STORAGE CIVIL WAR. Mark my words
Forrester says it's time to give up on physical storage arrays
The physical/virtual storage tipping point may just have arrived
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.