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Recession? What recession? Some companies seem to find ways to grow in any environment.
How? Part of it is the team; another part is the product; and finally, it helps if there is a big change in the marketplace.
Well, all this applies to Salesforce.com (NYSE: CRM), which has achieved an incredible milestone: $1 billion in annual revenues.
Started in 1999, the company has transformed the business applications market. Salesforce.com sells its software on a subscription basis; access is through the Net; and there is a diverse platform where customers can build their own applications.
It's a winning strategy. Just look at Salesforce.com's latest quarterly results. The company saw revenues increase 34% to $290 million. Net income spiked to $13.8 million, or 11 cents per share, which is up from $7.4 million, or 6 cents per share in the same period a year ago. And, operating cash flow was about $76 million. In all, there is $880 million in the bank.
Net paying customers increased by 3,600 for a total of 54,000. In fact, Salesforce.com is making life tough for major competitors, such as Microsoft (NASDAQ: MSFT), Oracle (NASDAQ: ORCL) and SAP (NYSE: SAP).
However, going forward the growth ramp will not be as torrid. Simply put, companies are holding back on new expenditures.
Despite all this, Salesforce.com expects full-year revenues of $1.3 billion to $1.31 billion, with earnings per share of 54 to 55 cents. In light of the tough economy, these are certainly impressive numbers.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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