Salesforce.com, inc. (NYSE:CRM)’s Chairman and CEO, Marc Benioff, spoke to CNBC’s Jim Cramer on “Mad Money” and discussed their amazing growth as cloud software business and how partnership with tech giants like Microsoft Corporation (NASDAQ:MSFT) and Philips helped the company in transforming the balance sheet.
Salesforce reported its second-quarter results that saw revenue coming in at $1.32 billion, edging out the revenue projection of $1.29 billion for the quarter. Earnings also increased by 44% year-over-year to $0.13 a share, smashing the consensus estimate of $0.12 for the quarter. The company also revised their guidance for fiscal 2015 wherein it expects revenue of $5.34 – $5.37 billion, which is an increase of $30 million compared to its earlier guidance. Salesforce.com, inc. (NYSE:CRM) expects earnings for the year to be in the range of $0.50-$0.52.
The CEO, Benioff, described the quarter as being awesome in a telephone interview with Cramer, where he also talked about the strategic partnerships that Salesforce.com, inc. (NYSE:CRM) has entered with companies like ExactTarget Inc (NYSE:ET) and Microsoft Corporation (NASDAQ:MSFT), which are taking advantage of their amazing cloud marketing tools.
[…] Here is a stock that actually has been trading sideways in the mid-50s for months after a heaviest decline during the spring when investors fled from all things cloud-related […],” stated Cramer.
Talking about their amazing growth, Benioff said revenue grew by 38% in the latest quarter compared with the same period a year ago. He went on to say that there has never been a software company that has had such a growth rate before and that their $5 billion revenue run rate is amazing. He further said that Salesforce.com, inc. (NYSE:CRM)’s collaboration with ExactTarget Inc (NYSE:ET) and even Microsoft Corporation (NASDAQ:MSFT) is a great opportunity for the businesses.
“[…] The number one customer of ExactTarget is Microsoft, who has built a great new product they have called Office 365 on top of our Salesforce marketing cloud, and that has brought us closer with Microsoft than ever before […]” said Salesforce.com, inc. (NYSE:CRM)’s CEO, Benioff.
Coatue Management, led by Philippe Laffont initiated a stake in Salesforce.com, inc. (NYSE:CRM) in the second quarter of 2014 and now owns 3.65 million shares of the Salesforce.com.