NEW YORK (TheStreet) -- Salesforce.com (CRM) provides its customers with a suite of products that it claims can help their marketing departments track every detail of their customers' behavior through cloud computing, allowing clients to gain valuable insight into the success of their marketing.
With such an ambitious promise of services it must have to as a great surprise to investors that the company has now told the SEC that it can't even quantify its own revenue streams. In a filing Tuesday the company said that it could not distinguish between revenue from subscriptions from new customers and upgrades from existing ones.
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The company has more than 100,000 clients currently and the stock has been suffering on the heels of this revelation for the past few days.
As of the closing bell on Friday CRM stock is down 3.8% to $60.74 a share.
TheStreet Ratings team rates SALESFORCE.COM INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SALESFORCE.COM INC (CRM) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth and solid stock price performance. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive."