Maybe you should think twice, but if you’re investor you definitely should think twice about keeping your money in a company that said in a response to the SEC that “we respectfully note that we currently do not have financial systems and controls in place to be able to accurately quantify the percentage of our total revenue derived from subscriptions to the Sales Cloud or any other core service offering in any particular fiscal period.”
An important note here is that Salesforce.com is a publicly traded company (hence the SEC inquiries) and they were a dotcom who survived the bubble and were talking about the cloud before most of us knew what that was. Doesn’t it strike you as odd that a company worth over $4 billion on the market has no idea where its revenue comes from? Despite that statement there is a clear picture they put in their financials that shows since 2011 they’ve been losing money with Salesforce.com which begs the question are they really worth the market value and are they really good at CRM?
The SEC became curious after their purchase of ExactTarget for $2.5 billion last summer and wanted to know where Salesforce.com’s revenue growth was coming from. Even more interesting it appears officers of the company have sold over $16 million in their shares in the company over the last 6 months. I’d like to talk to Maria Martinez the President of Sales and Customer Success at Salesforce.com to get the story behind her sale on March 7th of over $4 million of her shares in the company.
I wouldn’t be surprised if some scandal erupts at Salesforce.com in the near future as the SEC continues to investigate, at the very least I suspect a market correction of their stock price and I know I will think twice before recommending their services to clients until they get their finances in order. For a company known as a leader in the CRM space (and even holding the CRM ticker on the NYSE) they really should have a better understanding of their revenue streams.