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)
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.
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), salesforce.com (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).
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/Force.com) +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, 4:10 PM
- Salesforce.com (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, 4:13 AM
- SAP Chief Executive Bill McDermott once again ruled out that his company has any interest in buying rival Salesforce.com (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)
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.
Fri, May 8, 4:03 AM
- Microsoft (NASDAQ:MSFT) currently is not weighing an offer for Salesforce.com (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.
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.
Sun, May 3, 6:12 AM
- Shooting down a Bloomberg report from Friday, SAP said it hasn't ever considered acquiring online rival Salesforce.com (NYSE:CRM).
- "There is no truth whatsoever to the suggestion SAP is considering or ever did consider acquiring Salesforce.com," announced an SAP spokesperson in an e-mailed statement.
- Many rumors have been on the loose since reports first surfaced last Wednesday stating Salesforce had been approached by a potential acquirer.
- Previously: Bloomberg: Salesforce, SAP discussed alliance, acquisition last year (May. 01 2015)
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, 3:44 AM
- Although declining to comment on whether Oracle (NYSE:ORCL) made an approach for Salesforce.com (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)
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, 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.
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.
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