Sign up to receive 5 free days of our daily summary for tech news.

Subscribe today for just $10/month for your first 3 months to access daily conference calls during the week of the Uber IPO. 

Read this article for free.

Already a subscriber? Log in here

Amid Cloud Mania, Questions About Salesforce's Growth

Salesforce.com’s many acquisitions and the change-the-business-world gospel preached by chief executive Marc Benioff mask a deterioration in the company's much-touted revenue growth, a worrying development for a bellwether firm whose share price has risen steadily for years.

Doubts about Salesforce’s financial performance have been percolating for some time in the halls of the Securities and Exchange Commission and in the offices of a handful of Wall Street research firms. The SEC said in February that it had “completed our review” of the company’s financial filings. Wall Street analysts are examining how the company’s aggressive accounting practices, which are legal but unorthodox, help to obscure the company’s underlying business performance. The company declined to comment for this story.

While most major companies in the sector are more conservative in their accounting than Salesforce and don’t appear to have similar issues, the explosion of cloud-based software services makes it important to understand how the companies can and should be valued.

What Is The Information?

Notes bb3aa5069205d702dda37fc71dc6f1c59df2310c4379304e9f1199f052af4884

Exclusive Articles

We broke it first. Receive original reporting you won't read anywhere else from the largest newsroom in tech.

Notebook b5103017ee163370a1667c9ce59ab0ef023875a17888105d26c185cadf31bb69

Daily news analysis

Every weeknight, we'll send you our reporters’ views on the day’s top tech news—distilled into one email.

Conference calls c9e664e8b96ee347d3e92b8309938f268422b9db98cfabca5c826fbb75054b23

Conference calls

Get access to our reporters and other top executives with monthly deep-dive calls into topics like startups and autonomous vehicles.

Events 499acedd16cffc41445edd76bfd302b2836c2a27419890f17130a6b10e2aa3df

Special Events

For no extra fee, get access to more than a dozen events yearly, from intimate dinners to larger gatherings with marquee speakers.

What else is included in my subscription?

Become a contributor

Share your views and find other subscribers by completing your profile. You’ll be listed in our contributor directory.

Slack community

Discuss topics and current events with our subscriber-only Slack group and share news about your company with other subscribers.

Annual Subscriber only benefits:

Org Charts

Access the only collection of tech company org charts. Our expanding database includes companies like Amazon, Snap, and Uber.

Crypto Newsletter

Our experts investigate the latest in the crypto world to keep you in-the-know about the movements of digital currencies.

Stay up to date on Silicon Valley

Sign up for Jessica Lessin’s (The Information’s CEO & Founder) free Saturday newsletter and also receive a complimentary week of our daily afternoon tech commentary email.

Already a subscriber? Log in here

Recent Articles

Media Enterprise Google Apple

When the Media Plays Us

By Jessica E. Lessin

Google

Benchmark-Backed Zuora Eyes IPO in 2018

By Serena Saitto

Venture Capital Startups

The ‘Philosophical Recession’ Hanging Over Tech Startups

By Aaron Tilley

Enterprise Amazon AI Cloud

Demand Soaring for Amazon AI Services? Not So Fast

By Kevin McLaughlin and Amir Efrati

“Since they seem to give out so much stock as compensation, Benioff obviously votes for growth over profits."