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Posted On: 05/01/2018 10:41:13 PM
Post# of 32698
A lot of people talk about Salesforce but have no clue that the company was unprofitable for many years and just turned a profit in the last year.
Is Salesforce Profitable Enough To Take On Microsoft, Oracle In Merger Deals?- 4/25/2018
"For its $10 billion revenue scale, Salesforce has disappointing profitability . Even a smaller and higher-growth vendor like ServiceNow (NOW) is delivering better operating margin."
"We believe that M&A will be a critical pillar for Salesforce to not only defend its leadership position in the customer relationship (software market), but also to become more strategic to enterprise customers as it moves further upmarket ," added the Barclays analyst. "As such, we believe sub-par margins and cash flows can hurt Salesforce in key M&A situations, where all-cash buyers tend to be better positioned."
Cash-rich Oracle has been viewed by analysts as a likely buyer in 2018.
https://www.investors.com/news/technology/sal...rofitable/
Is Salesforce Profitable Enough To Take On Microsoft, Oracle In Merger Deals?- 4/25/2018
"For its $10 billion revenue scale, Salesforce has disappointing profitability . Even a smaller and higher-growth vendor like ServiceNow (NOW) is delivering better operating margin."
"We believe that M&A will be a critical pillar for Salesforce to not only defend its leadership position in the customer relationship (software market), but also to become more strategic to enterprise customers as it moves further upmarket ," added the Barclays analyst. "As such, we believe sub-par margins and cash flows can hurt Salesforce in key M&A situations, where all-cash buyers tend to be better positioned."
Cash-rich Oracle has been viewed by analysts as a likely buyer in 2018.
https://www.investors.com/news/technology/sal...rofitable/
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