Salesforce 2016Q4 Earnings: Revenue Growth Sustainable; But Profitability Nowhere in Sight

Cloud computing behemoth Salesforce.com continued to defy the law of large numbers in fiscal 2016 fourth quarter results reported on February 24th.  The company had a stronger than expected quarter due to a surge in demand across all product categories and geographies. A number of factors, which include closing over 600 seven-figure plus deals and the first nine-figure deal, suggest that Salesforce may still be far from slowing down.  Profitability remains the only concern since Salesforce GAAP EPS stayed in red in the fourth quarter at $(0.04), though the non-GAAP EPS analysts track were $0.19. This trend is not expected to change in the medium term despite a sustained moderate improvement in the operating margin over the last seven quarters. Nevertheless, shareholders responded positively to the earnings, resulting in a 10% jump in Salesforce’s shares following the release of the results.

from Forbes – Tech http://ift.tt/1WOvNiZ
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