tag:blogger.com,1999:blog-5719332149137711434.post7610582117246029123..comments2024-02-22T23:24:18.865+11:00Comments on Leon's CRM Musings: Salesforce’s Third Quarter Results (and fixing up a small mistake)Leon Tribehttp://www.blogger.com/profile/05713816319075495059noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-5719332149137711434.post-77534737854414782202011-11-19T04:32:33.958+11:002011-11-19T04:32:33.958+11:00Great analysis. One item I find to be interestin...Great analysis. One item I find to be interesting is the % of Sales and Admin Expense vs Revenue. A well run business should see reduction in the % or at least at positive operational benefit from a CRM business strategy. Of all the companies they should be leading by example. Their SG&A % has risen to be 67% of Revenue and their Sales Expense has risen to 52% from 48% last year and 46% previously. So operationally they are much less efficient than before and trending up. Additionally, their professional services have have fallen to only 6% of Revenue, which to me a leading indicator of where they are headed. As complex enterprises are not as enchanted with them as they use to be with their Professional Consulting Staff. I am sure they could spin this differently, just my take. <br /> <br />They still feel like a start up firm, buying up lots of companies, creating a lot of buzz in the market. But as a CRM Consultant I look at that app as say "Where is the Beef?" So I realize that a lot of expense and inefficiency is from the purchases, and in 2 years or so these admin expenses will be reduced. <br /><br />If I was a major investor I would be questioning the idea that buying up companies without a seamless integration strategy or a good platform play is just a waste of my money. Why not just take the time to invest in the IP yourself, hire some great folks, innovate with partners, lead by example. It seems like they have run out of good innovative ideas. Without a doubt they have only one drum to beat, that is the cloud message, which the industry has responded to, so it is time to move on. <br /> <br />Their stock is tanking today, and well on the way to a major correction. The strike price for some folks was up to $200 this summer, it is trading at $114 today.Anonymoushttps://www.blogger.com/profile/02685827316409179299noreply@blogger.com