Salesforce.com Earnings: Driving Home the Thesis of ExactTarget
NEW YORK ( TheStreet) -- Salesforce.com
During the company's earnings call, Chairman and CEO Marc Benioff could not emphasize enough that the firm's recently acquired email marketing firm ExactTarget remains a critical part of salesforce.com's growth strategy and helped drive the second-quarter revenue growth. The company revealed during the call that it is becoming less conservative about its outlook on ExactTarget's full-year revenue contributions after closing the deal much earlier than anticipated in July. The company is now giving an estimated range of $140 million to $145 million, up from the previous forecast of $120 million to $125 million announced at the time of the deal.
Salesforce.com closed its transaction with ExactTarget just a month after announcing its agreement to buy the business for $2.5 billion. It was the company's largest acquisition driven by its ambitions to expand in online marketing.
Benioff proclaimed that his ExactTarget message will be "fully delivered" by the time of the company's November 18th to 21st widely-attended annual Dreamforce user conference in San Francisco. The message is expected to get a lot of play at the September Connections Conference in Indianapolis with ExactTarget.
Salesforce.com shares typically get bid higher ahead of the Dreamforce conference in anticipation of next generation product innovation announcements.
"All I am focused on right now is delivering an incredible new version of salesforce.com at Dreamforce, an incredible new version, and that is anchored to the cloud, to mobile and social capabilities. Number two, I am extremely focused on the success of ExactTarget," said Benioff.
The company said Thursday that it is finding new ways to maximize the monetization of its properties. Benioff said the company has simplified its product line into four core offerings : the Sales Cloud, the Service Cloud, the Marketing Cloud and the Platform, which will enable the company to bundle its products more effectively for customers and create "tremendous" opportunities for upgrades. Product features highlighted by Benioff include the human performance capabilities of Work.com; the integrated data capabilities of Data.com; and the integrated campaign and marketing capabilities of mobile, social and cloud-geared Pardot, which had been purchased by ExactTarget in Oct. 2012 and was a key asset that helped drive buyout interest from salesforce.com. CRM data by YCharts
Salesforce.com's outlook and results have been consoling to investors who were growing more and more nervous that its aggressive investment strategy was not translating into sales growth momentum in the face of an increasingly crowded cloud services sector. Salesforce.com's share price performance can best be described as choppy and confusing over the last few months.