Salesforce shares (NYSE:CRM) are trading today at their highest price ever — $181.46 a share. It represents a 7.23 percent increase compared to yesterday’s closing price. Today’s trend is directly related to Salesforce’s fourth-quarter earnings. With revenues up 32 percent year-over-year, the company could become a profit-making venture in the coming year.
Revenue growth shows no sign of slowdown as the company expects to jump from $695 million during Q1 2013 to $882 million to $887 million for Q1 2014. It represents an increase of 27 to 28 percent year-over-year. Salesforce expects the same increase (25 to 27 percent) for the full fiscal year 2014.
Yet, what’s even more significant is that the company managed to nearly resorb its net loss. During Q3 2013, Salesforce reported a net loss of $220 million. With $20.8 million of net loss last quarter and a good revenue outlook, investing in Salesforce could finally pay off.
While other consumer technology companies had a difficult experience with the stock markets (Zynga, Groupon, Facebook), Salesforce isn’t one of those companies. Founded in 1999, Salesforce started trading in 2004.
Valued at just $22 a share in November 2008, Salesforce shares have climbed 825 percent over the past four years — the company’s market capitalization is $26.4 billion. Now that its stock has reached an all-time high, it remains to be seen whether it can still grow at the same pace.
Salesforce is an enterprise cloud computing company that provides business software on a subscription basis. The company is best known for its on-demand Customer Relationship Management (CRM) solutions. Salesforce was founded in 1999 by former Oracle executive Marc Benioff, and went public in June 2004. Salesforce has been a pioneer in developing enterprise platforms through its innovative AppExchange directory of on-demand applications, and its Force.com “Platform as a Service” (PaaS) API for extending Salesforce.
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