Piper Jaffray Believes salesforce.com (CRM) Will Exceed Revenue Expectations

June 27, 2008 9:23 AM EDT

Piper Jaffray believes salesforce.com (NYSE: CRM) is well-positioned to exceed current consensus revenue expectations after conducting a survey. The firm maintains their Buy rating and $81 price target.

Piper recently surveyed 29 customers at the Tour de Force event in Santa Clara to gauge how the challenging macro conditions will affect 2H:CY08 subscriber trends.

In regards to the results, the firm said, "93% of respondents intend to maintain or increase their subscriber count in 2H:CY08. Specifically, 72% of respondents plan to add subscribers while 21% plan to maintain current subscriber levels. Only 7% (2 respondents) plan to decrease their subscriber count, and these were small customers. This refutes the thesis that lower business levels will drive net reductions in corporate sales headcount and a corresponding reduction in salesforce.com subscribers. Overall, these results speak to the critical nature of salesforce.com's offerings and suggest customers will increase their commitment to CRM, even in a challenging macro economy."

The survey also represented 8 different verticals. These results support Piper’s thesis that that salesforce.com is attractive to all size businesses in all verticals, and is successfully penetrating the enterprise market.

Salesforce.com is the market and technology leader in on-demand business services.

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