, Inc.(NYSE:CRM) 4Q14 Results Fails To Impress Analysts


Dallas, Texas 03/12/2014 (FINANCIALSTRENDS) –, inc. (NYSE:CRM) reported its fourth quarter and full year 2014 operations results on 28th February. On the back of the better than expected results, the stock gained while analyst firms came down hard on the company management for taking their eye off the ball with respect to increasing profitability, as all their focus has been on increasing the firm’s top line.

In a scatting note to his clients after placing a underperform rating on the stock, trading house Cowen and Co analyst Peter Goldmacher has opined that “While we believe the product is solid and the market is large, we are concerned that management’s focus on top-line growth to the detriment of profitability is not going to end well.”

On the earnings call, inc. (NYSE:CRM) Chairman of the Board and Chief Executive Officer Marc R. Benioff has been quoted to have said that the firm recorded a record 10 deals which were more than ten million in the fourth quarter, which he opined showcases the potential the company has in bringing in multimillion dollar deals, even as customers actively look at software as a service licensing model to run their IT set ups.

The firm also indicated its resolve to increase its investments in Europe as its revenue from the geography went up by close to 41 percent for the reporting quarter. The company disclosed that it would be looking at adding close to 500 new rolls in order to retain and grow the momentum generated among its European customers during the current financial year.   It also disclosed that it would invest in new data centres which will come up in France, Germany and U.K. by 2015 at a cost of close to $50 million. Since the earnings call, the stock has lost close to 7.8 percent of its market valuation.