Raises Guidance on Growth in Customer Base

A A A ( CRM ) recently announced its fiscal year Q1 2012 earnings in which it raised its revenue forecast range to $2.15-2.17  billion for the full fiscal year 2012 The company mentioned in its conference call that faster growth in customer additions is responsible for the revised outlook. had net addition of 5,400 customers in the last quarter taking the total paying customer count to 97,700, which is an important metric for for the company as it competes with much larger tech firms like SAP (NYSE:SAP), Oracle (NASDAQ:ORCL), Microsoft (NASDAQ:MSFT) and IBM (NYSE:IBM) in this market.

We currently maintain $122 price estimate for , which is about 15% below market price.

Groupon and Bank of America the standout customers for

During the earnings conference call, the company specifically mentioned the names of Groupon and Bank of America ( BAC ) as its standout customers. The company mentioned that its cloud-based products like will be used in a variety of Groupon's business. We discussed prospects in a recent article titled's Development Platform Could Become a Major Force . Although the company's cloud-based products are still a miniscule part of the overall cloud market, we expect it to gain traction going forward.

Here is what company mentioned about how it will help drive Groupon's business:

..The platform will touch nearly every aspect of Groupon's business, whether it's their management of merchants, the core of their business, their city planning and merchandising efforts, their customer service and consumer support, whether it's the development of their coupons, will help them to re-architect their company for the future.

The company also had some good things to say about Bank of America and how it is helping drive its business:

..Bank of America has entrusted us to help out thousands of Service Cloud seats, enabling its home loan service reps to quickly and accurately solve problems across all of their support channels and customer touch points.

See our complete analysis for

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

This article appears in: Investing , Investing Ideas , Stocks , US Markets

Referenced Stocks: BAC , CRM , DELL



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