Salesforce Earnings Revealed
Salesforce.com announced results for the first quarter yesterday and as expected the company is on a $2 billion run rate. That’s a lot of revenue and continued validation of the cloud computing model that Salesforce helped to innovate. Interestingly, while growth is robust at 34% on a year over year basis, it’s not the 80% or more the company enjoyed not that long ago. Still it is significant. Nothing wrong here, simple math shows that the bigger you are the harder it is to double in size. It also may have something to do with the available market size, one reason that Salesforce is so intent on releasing new products that address different markets.
If my math is right, Salesforce was up 34% or more than $125 million that’s like taking a-mid sized company and adding another one to it. Effectively the company is now adding four smaller companies to itself each year exclusive of acquisitions.