Salesforce.com, (NYSE:CRM), which has been building its Marketing Cloud portfolio with acquisitions like Radian6 and Buddy Media, is now offering a new Twitter ad platform for companies using Twitter’s advertising application programming interface (API). This offering is currently in closed beta and Salesforce.com is one of the first social media marketing companies to gain access to Twitter’s API. This platform will allow marketing managers to manage sponsored Tweets on Twitter along with all of their existing social marketing programs.
While social media is a key growth area for Salesforce.com, the company has had weak earnings and reported a net loss of $220 million in Q3 2012, part of which can be attributed to the acquisition of social media company Buddy Media. We expect Marketing Cloud to be a key growth factor for Salesforce.com in the coming quarters. 
- The Year In Review: Salesforce
- How Is Salesforce Improving Its Operating Efficiency?
- How Sensitive is Salesforce’s Stock to Sales & Marketing Expenses?
- How Do R&D Expenses Impact Salesforce’s Stock Price?
- Salesforce’s Billings Growth Bodes Well For The Future
- Salesforce Q3 Earnings: Another Quarter Of Growth, $10 Billion Revenues In Sight
Outlook And Full Year Guidance
After the strong revenue growth in Q3, the company tweaked its full year revenue outlook higher, around 35%-36% y-o-y growth. It also initiated a FY 2014 guidance of $3.8-$3.85 billion. For Q4, the company expects revenues of $825 million to $830 million, an increase of near 30% y-o-y.
Acquisitions Weigh On Salesforce
Salesforce acquired Buddy Media, a social enterprise software that enables clients to listen, engage, gain insight, publish, advertise and measure social marketing programs. In an 8-K filed by Salesforce , the company revealed that Buddy Media is losing money and in the six months ended June 30, 2012, it reported a cumulative net loss of $20.5 million. This is likely to weigh on Salesforce.com’s earnings in the short term, and we will keep an eye on how its acquisitions are faring.Notes:
- Salesforce.com Launches Twitter Powered Advertising Platfrom, www.cio.com, Feb 20, 2013 [↩]