Seeking Alpha, inc. (CRM)

  • Wed, Jun. 10, 5:55 PM
    • Nearly half of all Salesforce (NYSE:CRM) shareholder votes cast at last week's annual meeting for an executive pay vote opposed the pay packages given to CEO Marc Benioff and other senior execs, the company has disclosed.
    • Benioff, whose net worth is estimated by Forbes to be at $3.8B, saw his compensation rise 25% last year to $39.9M, with stock option awards accounting for over $34M.
    • Though only advisory, the shareholder vote points to discontent with Salesforce's exec compensation (rival/ex-Benioff employer Oracle can relate). Altogether, 7 execs earned $89.7M last year, a figure equal to 13% of Salesforce's total G&A spend. (8-K filing - .pdf)
    | Wed, Jun. 10, 5:55 PM | 17 Comments
  • Fri, May 22, 1:19 PM
    • CNBC's David Faber reports Microsoft (MSFT -0.7%) held "significant talks" earlier this spring about acquiring Salesforce (CRM +2.4%), but the companies "remained far apart on a price." Microsoft was reportedly willing to offer $55B for Salesforce (current market cap of $49.3B); Salesforce CEO Marc Benioff is said to have wanted as much as $70B.
    • Faber adds the talks aren't expected to restart anytime soon. Aside from the price difference, Satya Nadella was reportedly "somewhat reluctant to pull the trigger on a deal of such size and consequence for his company."
    • Bloomberg reported on May 5 Microsoft is "evaluating a bid" for the cloud CRM software giant - Microsoft's name had already loomed large in speculation about a rumored suitor. Reuters reported soon afterwards Microsoft wasn't currently weighing an offer.
    • Salesforce has spiked higher on the report. Shares are up 6.3% since the company posted an FQ1 beat and reported 31% Y/Y deferred revenue growth on Wednesday afternoon.
    | Fri, May 22, 1:19 PM | 47 Comments
  • Thu, May 21, 9:30 AM
    • Alongside Goldman's list of 50 stocks appearing most as top holdings at hedge funds is its list of the 50 top shorts.
    • New additions this quarter: Baxter Intl (NYSE:BAX), UPS, Marriott (NASDAQ:MAR), NextEra (NYSE:NEE), Ford (NYSE:F), National Oilwell Varco (NYSE:NOV), McDonald's (NYSE:MCD), M&T Bank (NYSE:MTB), CenturyLink (NYSE:CTL), Amgen (NASDAQ:AMGN), Pioneer Natural (NYSE:PXD), Duke Energy (NYSE:DUK), Seagate (NASDAQ:STX), AbbVie (NYSE:ABBV), Cisco (NASDAQ:CSCO).
    • The full list (in order of $ value of short interest): AT&T (NYSE:T), Disney (NYSE:DIS), IBM, Verizon (NYSE:VZ), Intel (NASDAQ:INTC), Kinder Morgan (NYSE:KMI), Exxon (NYSE:XOM), Pfizer (NYSE:PFE), J&J (NYSE:JNJ), Deere (NYSE:DE), Caterpillar (NYSE:CAT), Exelon (NYSE:EXC), GE, Boeing (NYSE:BA), Halliburton (NYSE:HAL), Fox (NASDAQ:FOXA), Comcast (NASDAQ:CMCSA), UTX, Regeneron (NASDAQ:REGN), Merck (NYSE:MRK), (NYSE:CRM), AbbVie (ABBV), Conoco (NYSE:COP), Wal-Mart (NYSE:WMT), Eli Lilly (NYSE:LLY), Celgene (NASDAQ:CELG), Schlumberger (NYSE:SLB), AutoZone (NYSE:AZO), Wells Fargo (NYSE:WFC), Emerson (NYSE:EMR), McDonald's (MCD), Reynolds (NYSE:RAI), Target (NYSE:TGT), Accenture (NYSE:ACN), Coca-Cola (NYSE:KO).
    | Thu, May 21, 9:30 AM | 76 Comments
  • Wed, May 20, 5:10 PM
    • Salesforce's (NYSE:CRM) deferred revenue balance rose 31% Y/Y in FQ1 to $3.06B, nearly even with FQ4's 32%; mid-to-high 20s growth is expected in FQ2. The unbilled deferred revenue balance rose 25% to $6B; FQ4 growth was 27%.
    • Thanks in part to the deferred revenue growth, free cash flow (GAAP net cash - capex) rose 60% Y/Y to $659.8M, far above non-GAAP net income of $108.3M. Capex totaled $71.1M (5% of revenue).
    • Business performance: Sales Cloud subscription/support revenue +9% Y/Y to $630.4M; Service Cloud (customer support software) +38% to $407.7M; Marketing Cloud (ExactTarget) +29% to $143.2M; Salesforce1 platform/other (Heroku/ +36% to $224M. Professional services/other revenue +33% to $106M.
    • Regional performance: Americas revenue (74% of total) +27% Y/Y to $1.11B. Europe +12% to $258.8M; Asia-Pac +15% to $137.2M. A strong dollar had a 4% impact on total revenue growth, and 16% and 12% impacts on Europe and Asia-Pac growth.
    • Financials: Operating expenses (non-GAAP) rose 15% Y/Y to $987.7M, trailing revenue growth of 23%. On a GAAP basis, sales/marketing spend totaled $737M, R&D $222M, and G&A $176M. Salesforce ended FQ1 with $1.92B in cash/marketable securities, and $1.3B in debt.
    • Shares have risen to $73.48 AH.
    • Salesforce's results/guidance, PR
    | Wed, May 20, 5:10 PM | 12 Comments
  • Wed, May 20, 4:10 PM
    • (NYSE:CRM): FQ1 EPS of $0.16 beats by $0.02.
    • Revenue of $1.51B (+22.8% Y/Y) beats by $10M.
    • Expects FQ2 revenue of $1.59B-$1.6B (+21% Y/Y) and EPS of $0.17-$0.18 vs. consensus of $1.59B and $0.17.
    • Expects FY16 (ends Jan. '16) revenue of $6.52B-$6.55B (+21%-22% Y/Y) and EPS of $0.69-$0.71 vs. consensus of $6.51B and $0.69.
    • Shares +3.4% AH.
    • Press Release
    | Wed, May 20, 4:10 PM | 28 Comments
  • Wed, May 20, 4:13 AM
    • SAP Chief Executive Bill McDermott once again ruled out that his company has any interest in buying rival (NYSE:CRM) and went further today by saying that Salesforce is unlikely to be acquired by any rival in the industry.
    • "I do not expect that (an acquisition) to be the case at all because of the valuation of the company," McDermott declared.
    • Salesforce will report FQ1 results after the bell today.
    • Previously: Salesforce slumps as dealReporter states M&A talks are slow (May. 19 2015)
    | Wed, May 20, 4:13 AM | 6 Comments
  • Tue, May 19, 5:35 PM
  • Tue, May 19, 1:06 PM
    • Sources tell dealReporter Salesforce (CRM -1.9%) buyout talks are currently quiet, and that a deal could take time. Shares have moved lower in response.
    • Salesforce, quite volatile over the last 3 weeks as various M&A rumors have emerged and been refuted, remains up 6% from where it traded before Bloomberg first reported the company had been approached by a potential acquirer on April 29. FQ1 results arrive tomorrow afternoon.
    | Tue, May 19, 1:06 PM | 6 Comments
  • Fri, May 8, 4:03 AM
    • Microsoft (NASDAQ:MSFT) currently is not weighing an offer for (NYSE:CRM), Reuters reports, saying that Microsoft sees the CRM software giant's market valuation as too expensive.
    • Earlier this week, Bloomberg reported that Microsoft was evaluating a bid for Salesforce after the latter was approached by another unnamed would-be buyer.
    | Fri, May 8, 4:03 AM | 24 Comments
  • Tue, May 5, 3:08 PM
    • Bloomberg reports Microsoft (MSFT -1.2%) is "evaluating a bid" for Salesforce (CRM +4.8%) after Salesforce was approached by another potential suitor. Salesforce is reportedly working with two banks to determine a response.
    • Bloomberg cautions Microsoft isn't currently in talks with the cloud CRM software giant, whose market cap stands at $49B. There was plenty of speculation Microsoft was the company that (per Bloomberg) recently approached Salesforce. SAP has denied being interested, and Oracle has suggested it isn't. A source says Microsoft has "long expected it might compete for Salesforce if it was for sale."
    • Salesforce has jumped on the report. If Microsoft pursues a bid, activist ValueAct Capital (has a board seat) might raise objections.
    • The report comes as Microsoft announces a partnership with cloud ERP/HR/e-commerce software vendor NetSuite (N +3%) to integrate NetSuite's apps with Office 365 apps and Azure services, and to make Azure NetSuite's "preferred cloud infrastructure platform." Microsoft struck an Office 365-focused partnership with Salesforce last year. NetSuite has received a lift from Bloomberg's report.
    | Tue, May 5, 3:08 PM | 18 Comments
  • Sun, May 3, 6:12 AM
    | Sun, May 3, 6:12 AM | 7 Comments
  • Fri, May 1, 4:36 PM
    • Salesforce (NYSE:CRM) CEO Marc Benioff and SAP CEO Bill McDermott "held discussions last year about possible strategic alliances between the two companies," Bloomberg reports.
    • The news service adds the talks covered "a potential acquisition of Salesforce by SAP." But it also states SAP wasn't the company that recently approached Salesforce about a possible acquisition (reported on Wednesday). With SAP currently worth $93B and Salesforce $48B, a deal would be closer to a merger than an acquisition after factoring an M&A premium.
    • SAP, like Oracle, is a major rival of Salesforce in the CRM software market. Gartner estimates Salesforce and SAP respectively had 16% and 13% of the 2013 CRM market, #1 and #2 overall. They were followed by Oracle (10%), Microsoft (7%), and IBM (4%). Salesforce's 30.3% 2013 CRM sales growth outpaced all major rivals.
    • Bloomberg's latest report follows remarks from Oracle co-CEO Safra Catz suggesting Oracle wasn't the company that recently approached Salesforce, and a BuzzFeed report to the same effect. Microsoft's name has often popped up in speculation about the suitor; IBM and Google have been mentioned to a lesser extent.
    | Fri, May 1, 4:36 PM | 6 Comments
  • Fri, May 1, 3:44 AM
    • Although declining to comment on whether Oracle (NYSE:ORCL) made an approach for (NYSE:CRM), Oracle Chief Executive Safra Catz stated her company could benefit if Microsoft or another rival bought the customer relationship management firm.
    • "It would cause a lot of disruption in that market and so I would view that as something that would be helpful to us especially in the short or medium term, dependent on who it was," Catz said.
    • Oracle has spent more than $60B on more than 100 acquisitions in its 38-year history but is "not known to throw around money," she added.
    • Previously: Report: Oracle didn't make a bid for Salesforce (Apr. 29 2015)
    • Previously: Salesforce reportedly approached by potential buyer; shares +15.4% (Apr. 29 2015)
    | Fri, May 1, 3:44 AM | Comment!
  • Wed, Apr. 29, 10:39 PM
    • Following an afternoon Bloomberg report stating Salesforce (NYSE:CRM) has been approached by a potential acquirer, many have speculated archrival Oracle is the suitor. However, BuzzFeed's John Paczkowski (formerly with Re/code) reports Oracle (NYSE:ORCL) hasn't made such a move.
    • Outside of Oracle, Microsoft (NASDAQ:MSFT) is the name that has popped up most often. The software giant (closed today with a $399B market cap) is large enough to swallow Salesforce, has relatively limited product overlap - its Dynamics CRM apps compete against Salesforce's apps, but generally with SMBs than enterprises - and has been hungry to grow its cloud exposure. It just set a target of nearly tripling its business cloud service revenue run rate by mid-2018.
    • Also: Microsoft and Salesforce struck an Office 365-centered partnership last year. Salesforce CEO Marc Benioff showed up today at Microsoft's BUILD developer conference to trumpet the integration of additional Microsoft and Salesforce apps/services, and made a few tweets about the partnership along the way.
    • Salesforce closed up 11.6% today thanks to Bloomberg's report, and then rose 1% in AH trading to $75.41. Many cloud software peers also got a lift.
    | Wed, Apr. 29, 10:39 PM | 14 Comments
  • Wed, Apr. 29, 2:50 PM
    • Bloomberg reports Salesforce (CRM) has been approached by a potential acquirer, and is working with bankers to field offers. Shares have soared in response.
    • With a current $51B market cap, only a handful of enterprise tech companies could afford to digest Salesforce. The short list includes Oracle ($197B market cap), Microsoft ($400B), IBM ($173B), and just maybe SAP ($94B). Oracle (NYSE:ORCL), which has made plenty of cloud software acquisitions, just launched a $10B debt offering.
    • Update: BuzzFeed reports Oracle wasn't the company that approached Salesforce.
    | Wed, Apr. 29, 2:50 PM | 41 Comments
  • Thu, Apr. 16, 4:32 PM
    • Cloud IT service desk software leader ServiceNow beat Q1 estimates in spite of major forex headwinds, but also offered light Q2 and (to a lesser extent) full-year sales guidance, and forecast a slight Q/Q billings decline.
    • Cloud CRM software leader Salesforce (NYSE:CRM) is down 1.1% AH to $67.20, and cloud HR/financials software leader Workday (NYSE:WDAY) is down 2.8% to $87.25. Both companies are expected to report next month.
    | Thu, Apr. 16, 4:32 PM | Comment!
CRM vs. ETF Alternatives
Company Description Inc provides enterprise cloud computing solutions, offering social and mobile cloud apps and platform services, as well as professional services to facilitate the adoption of its solutions.
Sector: Technology
Country: United States