Salesforce.com Inc (CRM)

CRM 
$56.25
*  
0.99
1.73%
Get CRM Alerts
*Delayed - data as of Oct. 22, 2014  -  Find a broker to begin trading CRM now
Exchange: NYSE
Industry: Technology
Community Rating:
 
 
Symbol List Views
FlashQuotes InfoQuotes
Stock Details
Summary Quote Real-Time Quote After Hours Quote Pre-market Quote Historical Quote Option Chain
CHARTS
Basic Chart Interactive Chart
COMPANY NEWS
Company Headlines Press Releases Market Stream
STOCK ANALYSIS
Analyst Research Guru Analysis Stock Report Competitors Stock Consultant Stock Comparison
FUNDAMENTALS
Call Transcripts Annual Report Income Statement Revenue/EPS SEC Filings Short Interest Dividend History
HOLDINGS
Ownership Summary Institutional Holdings Insiders
(SEC Form 4)
 Save stocks for next time

salesforce.com, inc. (CRM)

Citi Global Technology Conference

September 4, 2013 04:35 PM ET

Executives

Graham Smith - EVP and CFO

Analysts

Walter Pritchard - Citigroup

Presentation

Walter Pritchard - Citigroup

We are going to take you to the finish line here on the center stage with salesforce.com. I’m Walter Pritchard, the software analyst at Citi and we’re happy to have with us Graham Smith, who is the Chief Financial Officer of salesforce. I’m going to run through some questions, that I had for Graham and then we will have some time towards the end for everybody that would like to ask a question to get their question in.

Graham Smith

Thanks again.

Walter Pritchard - Citigroup

Thanks again for joining us. I guess, I want to start out, you reported Q2 results less than a week ago, Thursday of last week and maybe you can just give the group what your key takeaways were from the quarter, we don’t need to run through the numbers, but sitting in the Chair, the Executive Team what did Q2 look like to you and what’s rest of the year look like?

Graham Smith

Yes, I think we had a strong quarter. I think certainly the receptivity or receptions of the results seem to be a lot better than the first quarter. I would say that the term of business generally was strong, maybe marginally better than Q1, but definitely we felt like a solid quarter on all fronts, revenue, cash flow and EPS. So that was encouraging. Generally I think good execution geographically -- interestingly Americas and Europe growing up almost exactly the same constant currency rate about 34% year-on-year. Asia-Pac at the moment is for us a little bit of anchor growing 19% constant currency and I think only 6% in reported. So obviously we are working on improving that, big quarter for us in terms of transactions.

Obviously, we acquired by far the largest company ExactTarget, which I’m sure we will talk about shortly. And then we also -- we are able to secure an agreement with Oracle database we -- our services relies on the Oracle database has done since the company started 14 years ago. And we put in place a much, much longer agreement. We’ve had a three year kind of rolling ULA with them and we were able to basically secure a secure agreement with two, three year options. So we’ve basically 12 year visibility now into Oracle technology license, which is great place for us to be.

Walter Pritchard - Citigroup

Got it. Great. So I guess, I want to start out and just talk a bit about your core business, the company was founded as salesforce.com and still the SSA business we gather is the biggest part of the business. Could you talk about sort of where you’re seeing the incremental demand coming in that market? Product has been around now for a number of years and you’re now, I guess, in the market, the number one player in the market I think you talked about in enterprise you’re not number one, but in the markets you’re number one. So just talk a bit about where the incremental demand is coming in that area?

Graham Smith

Yes, I mean, I think salesforce is still putting up strong growth numbers really across the board and I think there is a couple of factors I think that’s been on record saying that I felt like the market numbers will continually underestimated by sort of the Gartner’s and ADC’s of the world and I think that’s been born out recently. Gartner just revised all of their overall addressable market sizes up quite significantly. And their forecast encouragingly for us is that SSA the market is going to continue to grow at a sort of mid teens figure for the next few years. So I think although we’ve healthy share, clearly it’s our flagship product. More than 15% of our revenues come from Sales Cloud. Still feels like there is plenty of runway both at the low end where people are maybe starting to use an SSA product that they perhaps didn’t use at all before. But even at the high end, we’re still winning large accounts, new business.

I think geographically we’ve been I think quite focused on our top seven market. Again, we’ve -- we see strong growth. We’ve had relatively low penetration in most markets outside, the U.S., and U.K. are relatively high. Again, you look outside in Australia and Canada, France, Germany, Japan and so on it’s much, much lower. And you will start to see its ad I think more -- couple more territories next year’s key markets for us. Brazil is a very interesting market. We largely attacked Brazil through indirect channels in the past and exact target has a big presence in Brazil. So we’re kind of PV back off that. But we still -- I mean, it’s still multiple industries and multiple geographies driving SSA growth. There is no particular pattern to the consistent performance of that.

Walter Pritchard - Citigroup

Got it. And its – I think it looks like -- we look at your higher and pretty closely and look at where you’re bringing in people. You’ve also brought in some high profile sales leadership that has extensive enterprise background from Oracle. Could you talk about the enterprise market? You’ve quantified for your self, that you’re number three in the SSA market and the enterprise. Sort of how should we expect that the second half you’re unfold and how should we expect that, your penetration in the enterprise increases with moves that you’ve made over the last few months.

Read the rest of this transcript for free on seekingalpha.com