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

Maximizing your infrastructure through virtualization

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? ®

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
prev story

Whitepapers

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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.