A Closer Look at Salesforce's Growth Slowdown

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Aug. 29 (Bloomberg) – On today’s "Drill Down" Cory Johnson looks at Salesforce.com's slowing growth and mounting losses. He speaks with Emily Chang on Bloomberg Television’s “Bloomberg West.” (Source: Bloomberg)

What is driving salesforce?

Will it be enough to fight off comment -- competition from oracle?

Cory johnson is back with his second drill down of the day.

Oracle and salesforce, best of friends right now.

Interesting what is going on between these two companies.

Salesforce growth is interesting from a sales growth perspective.

On the long term, the stock has come down -- has risen quite a bit.

Doesn't really tell us what the story is right now.

These guys, you see sales growth inching up a little bit.

They have 77% last quarter, 77% this order but a little bit better in terms of growth.

That is strong for a company that has been around for a while.

They were still losing money on an operating basis.

We look at operating loss here because they had some unusual tax benefits that confused comparisons.

Generally speaking, their operating losses are still substantial but they say they are in growth mode.

In spite of all their acquisitions, they are still able to continue to move forward in sales growth.

If sales growth is slowing and losses are mounting, why is the stock up in after-hours?

There are a lot of good things going on and his company because they are gaining traction in the marketplace and people at wall street seem to think that is a great ring regardless of losses.

Salesforce has tremendous control over the way that they report numbers in a given quarter because they have so many locked up revenues.

Statement locked up, such affection between these two guys.

The guys who used to not be able to stand each other.

Generally speaking, the metrics by which salesforce are judged do not include profits and other result, people seem to like these results.

When they start tearing about profits, they wouldn't like these results.

How would you say salesforce is in contact with oracle in this race for enterprise software?

I think what is really interesting is that you see oracle as a competitor trying to mimic their approach.

Fundamentally, it is an impossible much.

Oracle goes in and says, buy this product for the next five years and salesforce says, i this product for today.

-- by this product for today.

Companies that are usually writing really big checks over a long.

Of time have been burnt by software that doesn't work.

This text has been automatically generated. It may not be 100% accurate.


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