As salesforce.com, inc. (NYSE:CRM) registered a growth of 23% in Q12015 year-on-year results, the buyout rumors have fizzled out. The earnings amounted to $4.1 million for this quarter as compared to a $96.9 million loss in the same period last year. After the company appointed financial officers in April, the market was abuzz that it was looking for a buyer.
CEO Marc Benioff has confirmed that they had no such plans in mind. The positive growth results have established that the company is not undergoing any crisis and has got bankers on board to improve its financial standing. Keeping in mind the current numbers, analysts have predicted a growth of 20% this year at $6.5 billion.
Good Times Are Here
This is a positive time for the company as many top technology companies have report only single-digit growth in Q12015. The trajectory of growth that Salesforce is treading on is going to yield results in coming quarters too, as the clients are billed for their subscription on a monthly basis. The bigger technology giants like Microsoft Corporation (NASDAQ:MSFT) and Google Inc (NASDAQ:GOOG) may show interest in acquiring Salesforce as the company is undergoing a bullish year.
Announcing the quarterly results of the company, Benioff stated that the company was not keen on going on sale and was focussed on registering $10 billion sales annually. The earnings boosted the market sentiment, and the shares were up by 4%. The last 12 months have been excellent for the company, and it saw a 46% rise in the stock and is currently valued at $48 billion.
Market Sentiment Boost
The profits in this quarter have helped the company regain the investor confidence as well. The analysts feel that even if the company has been considering a sale, it did not need to look for a buyer at present.
Salesforce was not able to gain in the markets over the past few years as the expenditure were more than the earnings and they were more focused on building a sound team of technicians. The move has yielded positive results and the time and finance seem to have been spent well.
Sources: reuters, usatoday