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back to article Salesforce back in the red, reviews future black ink orders

After a brief interlude in the black, Salesforce is back in more familiar loss-making territory, according to the financials for its second financial quarter this year. The giant CRM provider posted total revenue of $1.63bn (£1bn) for the period, an increase of 24 per cent year-on-year. Operating profit remained above water …

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  1. Zippy's Sausage Factory

    Given the massive drop in stocks worldwide lately, I'm guessing there's a big financial crisis coming (and I don't think I'm alone in saying that.)

    I think ti's likely any company making losses or thin profits now is probably already in danger of closing by the end of next year.

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  2. John Styles

    Am I alone in wondering how the hell, doing what they do, they can have that much revenue and lose money?

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    1. auburnman
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      Seems like a shitload of their value is going into deferred revenue, sales or big contracts that are expected to pay off in the future but legally they can't recognise as recoverable (yet.) The cost of drumming up all this business does have to be recognised though.

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  3. Anonymous Coward
    Anonymous Coward

    Being that a certain company I work for, made over forty grand worth of office equipment on one department alone this week (not such about targets for other departments), they have no problem with spending money.

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  4. Horned-Devil

    Its because they have to spread the revenues on the software licenses so as they grow they will still be showing losses - they are generating net cash so they aren't losing money. Its normal for growth license businesses to not show a massive amount of bottom line movement but they can still be net cash generating

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    1. Captain DaFt
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      -Its because they have to spread the revenues on the software licenses so as they grow they will still be showing losses - they are generating net cash so they aren't losing money. Its normal for growth license businesses to not show a massive amount of bottom line movement but they can still be net cash generating-

      Tricksy, tricksy beancounters! Gollum hates them, Gollum hates them forever!

      1 0 Reply

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