8/18/2019 Salesforce Questions

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Salesforce questions1. What is Salesforce business model? What are the key success factors?

How will these be observable from the company’s nancial

performance?

Salesforce business model revolves around deliverin cloudapplications via a subscription based model. !ustomers also pay e"trafor support. #$% of the revenues are from subs. &ey success factorsare deferred commission and subscription revenue' you can observethese from the company’s nancial statements

(. How successful has the company been? What is your assessment ofthe company’s performance?

 )he company has been successful in the recent past and hasoutperformed the S*+,--. t has seen stron stock returns' operatincash /ows are positive and they have a lot of cash and cashequivalents on hand. 0ross prots have been increasin as well.

$. How does the company reconie subscription revenue? s it consistentwith 022+? 3valuate the company’s nancial statements if thecompany had always reconied revenue at a time the contract wassined' instead of deferrin it over time?

4atably' pro5rated once they

6. How does the company reconie sales commission revenue? s itconsistent with 022+? 3valuate the company’s nancial statements ifthe company had always reconied revenue at a time the contractwas sined' instead of deferrin it over time?