Is Salesforce.com the No. 2 CRM Provider Behind Oracle?

Cloud CRM provider Salesforce.com may have grown its annual revenue to a record $2.27 billion in 2011, but its fourth quarter still left Wall Street cold with a net loss on $642 million.

See, Wall Street was expecting non-GAAP earnings of 40 cents a share on revenue of $624.4 million last quarter, but Salesforce posted a net loss of $4.08 million, or three cents a share. Regardless, that quarterly revenue figure is a 38 percent gain over last year's. Similarly, $2.27 billion is 37 percent more over Salesforce's 2010 performance. As always, the real nitty-gritty is contained in Salesforce's earnings statement, and Larry Dignan at ZDNet has some good Wall Street-focused analysis.

But to me, the most interesting thing is a claim made by never-boring Salesforce.com CEO Marc Benioff on the earnings call: Despite the mixed results, Salesforce's strong revenue push it over the edge and make it the No. 2 CRM provider in the market across both the legacy and cloud spaces, putting it right behind perennial rival Oracle -- and more relevantly, ahead of SAP.

SAP is chasing its own cloud hoop dreams, so let's see if that lasts, but it's a strong position for Salesforce to be in as it accelerates towards a raised outlook of $2.92 to $2.95 billion for FY13. Benioff reports that his company had a hundred seven-figure transactions and nine in the eight figures last quarter alone, so that's a solid starting line.

Come back on Monday to see how Salesforce's mixed performance in the fourth quarter of 2011 affected its standing on the Talkin' Cloud Stocks Index.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish