Reports 50% Revenue Growth - InformationWeek
Cloud // Software as a Service
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Ransomware: Latest Developments & How to Defend Against Them
Nov 01, 2017
Ransomware is one of the fastest growing types of malware, and new breeds that escalate quickly ar ...Read More>> Reports 50% Revenue Growth reported net income of $9.56 million on revenues of $247.6 million in the first quarter and said it signed 2,600 companies and organizations as new customers.

Any pullback in software spending because of a poor economy isn't affecting -- at least not negatively. The ambassador of software-as-a-service reported a revenue increase of 52% for its first fiscal quarter ended April 30 compared with the same quarter last year, and an increase in its customer base of more than 6%. reported net income of $9.56 million, up from $730,000 last year, on revenue of $247.6 million. It signed on 2,600 companies and organizations as new customers in the quarter, and experienced strong growth both inside and outside the United States, particularly in Asia.

Significant customer wins for's CRM service included Nippon Telephone and Telegraph in Japan, and Areva, a large nuclear power company in France, which won following a competition for the business with SAP, said Saleforce CEO Marc Benioff in an earnings conference call Wednesday. The Asia Pacific region made up 10% of's revenue in the quarter, rising 94% from last year's quarter to $24.1 million.

To support its growing Asian customer base, Benioff said is setting up a new data center in Singapore to deliver its SaaS offerings. currently operates out of two data centers in the United States. In addition, is building a network operations center in Singapore to monitor the uptime of the three data centers.

Benioff took a few pot shots at his competitors in the conference call. He claimed he never runs into Microsoft Dynamics CRM Online as competition in the marketplace and has never had a customer ask him about it. In regard to SAP, "their whole on-demand strategy is a huge train wreck," he said. Benioff was referring to SAP's decision earlier this month to delay the further rollout of its Business ByDesign software service while it works out financial and infrastructure kinks.

The jury is still out on how successful will be with, its platform as a service offering. Benioff said he's been on a year-long road trip promoting He cited Ryder and NBC Universal among the users of, and said 450 third-party software vendors are selling more than 800 applications that run on on the company's AppExchange.

But it's hard to know the profitability or sales growth rate of's offerings related to since it doesn't break out those numbers in its earnings report and wouldn't provide details about them when asked by analysts during the conference call.

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