Thursday, June 24, 2004

Boston.com / Business / Technology / Salesforce.com soars 56% in debut, to $1.7b in value

Boston.com / Business / Technology / Salesforce.com soars 56% in debut, to $1.7b in value "The online software pioneer's shares rose $6.20 from their initial public offering price to close at $17.20. The performance, which left Salesforce.com with a $1.7 billion market value, outstripped the average first-day gain of 13 percent posted by companies that have gone public so far this year, according to Renaissance Capital, a Greenwich, Conn., research firm.
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The biggest difference between Salesforce.com and yesteryear's Internet companies shows up on the income statement. Unlike early dot-com firms, Salesforce.com makes money, earning $3.5 million on revenue of $96 million in its last fiscal year, ended in January. The company posted a profit of $437,000 on revenue of $35 million during the first quarter of the current year."

Oh, so that explains why Salesforce.com now has a market cap greater than, e.g., Macromedia and Sybase. The bubble is back -- oh joy...
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