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Technology
TechCrunch - 2 days 42 min
The ongoing interest and use of cloud-based services has brought a generally good set of results to one of the leaders in the enterprise software-as-a-service business. Salesforce.com released Q1 earnings just now and in a quarter that is traditionally slower for the company, it swung to a net loss of $19.5 million, compared to a net profit of $530 million a year ago. Nevertheless, total revenues for the quarter were $695 million and earnings per share of $0.37 — beating estimates from analysts as polled by First Call, who expected adjusted EPS of $0.34 and $678.21 million for revenue. The figures were also better than Saleforce’s own guidance of $0.33-$0.34 for the EPS and revenue of $673 million – $678 million.
The sales were an increase of 38 percent on revenues for the same period a year ago, and Marc Benioff, chairman and CEO, salesforce.com, says that the company is on track for its first $3 billion year; last year the company broke new ground with $2 billion in sales.
Within salesforce’s revenues of $695 million, the company is making the vast majority of its money on its core, cloud-based CRM software, for which subscription and support revenues were $655 million. Professional services accounted for a much smaller portion of sales at just $40 million. Subscriptions are growing more: they were up by 38 percent compared to 30% for professional services.
The company says that it generated cash of $213 million in Q1, up 53 percent over last year. Total cash, cash equivalents and marketable securities are at $1.7 billion.
In addition to the bullish projections on $3 billion in revenues for the full year, Salesforce.com says that it expects revenues for the next quarter to be up on this quarter and in the range of $724 million and $728 million, up 33 percent on last year’s Q2.
Looks like tomorrow might be a good trading day for Salesforce.com. In a research note, Canaccord Genuity analyst Richard Davis noted that the thinks that shares of Salesforce.com might rise by as much as three-eight percent on Friday, due to “at least temporary exhaustion of risk-off selling of high valuation growth stocks,” and “a positive halo effect from a successful Facebook IPO.”
More to come. Refresh for updates.
TechCrunch - 2 days 42 min
Love’em or hate’em, despite the best efforts of Bump and others, traditional business cards aren’t going away anytime soon. At least, though, some companies are trying to bridge the gap between paper cards and efforts like Bump. New York-based Vizibility first announced its NFC-enabled businesses cards during SXSW earlier this year. Now, the online identity management platform for professionals, is ready to take this project out of beta and is making it widely available as a standard feature for its paying subscribers and for a one-time fee of $15 for users with free accounts.
With these cards, Vizibility promises, users will be able to wirelessly exchange contact information and share “hand-picked profiles, video bios, verified Google results and more.” Given that many phones, including the current generation iPhone, don’t yet support NFC, Vizibility is also printing a QR code on the front of the card as well. Vizibility users can also buy additional QR stickers and business cards and allows users to track when and where their cards were scanned.
Once scanned, the user’s browser will open up a mobile-optimized microsite with the contact’s information. The site lets you download you contact’s vCard and will also show mutual LinkedIn and Facebook friends. According to Vizibility, its cards are “the first commercially available mobile business card using QR code and NFC technologies.”
Vizibility has raised about $2.6 million since it was founded in 2009. The company’s latest funding round was a $1.3 million round last August that was led by Launchpad Venture Group of Boston.
TechCrunch - 2 days 1 hour
Facebook shares will start trading at $38 tomorrow, the company confirmed in a release, giving it a valuation of $104.12 billion. Facebook and its early shareholders will raise just over $16 billion in tomorrow’s much anticipated IPO.
At a $104 billion valuation, Facebook is worth more than any other tech IPO candidate at the time of its offering. It also perfectly matches what Facebook shares have been trading at in secondary markets over the last several months. Google was worth $23 billion at the time of its very unusual Dutch auction IPO back in 2004. As of tomorrow Facebook will be worth about half of what Google is worth now.
The proceeds of the sale are actually split between Facebook and early shareholders like Peter Thiel, DST and Accel Partners. Facebook is only selling 180 million shares while the other stockholders are parting ways with 241,233, 615 shares. On top of that Facebook has given the investment banks underwriting the IPO the 30-day option of selling up to 63,185,042 extra shares. At final pricing, that would be worth $2.4 billion, but it’s likely that Facebook stock will pop a bit tomorrow.
Because Facebook priced at the higher end of its $34 to $38 price range, this suggests that there will unsurprisingly be a lot of demand tomorrow. Bankers will want to price the deal so that there’s a bit of a pop for good publicity, but Facebook won’t want to underprice the deal so much that they leave billions of dollars on the table.
Accel Partners, the first venture firm that backed Facebook, will walk away with $1.9 billion from the sale of its shares. Goldman Sachs will take away $1.1 billion after its late stage investment in the company last year.
Facebook will have the third largest IPO in history. Only Visa and Italian electric utility ENEL raised more in their IPOs. A $104 billion market capitalization puts Facebook at more than 100 times its trailing earnings. That’s a big multiple to live up to, and it will likely need to add bold new revenue streams to justify the mammoth valuation.
TechCrunch - 2 days 1 hour
Last night, Time Inc. threw a pretty badass party in Manhattan to celebrate “Ten NYC Startups To Watch.” Among the ten were Fancy Hands, a site that offers up a personal assistant for every and any need you might have, and Stamped, a social network that lets you put your stamp of approval on the things you like.
We pulled aside founders of both companies to find out a little more about them, their business models, and why they think they deserve a spot on Time Inc.’s list.
In the case of Fancy Hands, founder Ted Roden justified his slot on the list with staying power. He’s been working on the site, that up until a recent $1 million funding round was entirely bootstrapped, for three years, with the site alive and growing for the past two years.
In his opinion, Time Inc. chose Fancy Hands because it’s not necessarily all about how much hype you get at launch, but your ability to scale and grow over time.
For Stamped the story is a bit different. After asking co-founder and CEO Robby Stein why he was named one of Time Inc.’s 10 best startups, his answer was all about disruption.
“We think that we’re trying to do something that will hopefully disrupt the way people think about discovering new information, and really transform the model from one that’s more crowd-sourced and anonymous to one that’s extremely personal,” said Stein.
TechCrunch - 2 days 1 hour
Freshdesk is trying to make waves in cloud customer support. Launched in June of last year, the young company is on a mission to help businesses of all sizes manage customer service through both traditional channels, like email and phone, as well on social networks like Facebook and Twitter. Earlier this week, Freshdesk added to its customer support suite, launching support for private customer messages via the new Brand Pages Facebook launched back in February. This means that, using the new Pages, customers can initiate private conversations with brands, with the ability to share the kind of sensitive information they wouldn’t post publicly on Facebook or Twitter, like passwords and credit card numbers.
Freshdesk said that it’s the first customer support platform to offer this kind of integration, a shot across the bow of its two largest and well-established competitors, Zendesk and Salesforce’s Desk.com. To compete, the startup is making a push to differentiate its platform, adding private messaging via Brand Pages on top of what it believes is its core differentiator: Allowing its customers to support and manage multiple products and brands from one simple web interface.
In less than a year, Freshdesk has already raised $6 million in venture funding from Tiger Global and Accel, and, though it believes that the biggest market opportunity down the road will be in offering its brand of cloud customer support to the enterprise, Freshdesk wants to entice (and give back to) the little guys as well.
That’s why the startup is today announcing the first phase of its “Future Fund,” which will provide customer support services to 501 startups and early-stage businesses through a $10 million “fund,” which includes free support for one year. Freshdesk has teamed up with incubators and angel funds, like YouWeb, Tandem Entrepreneurs, Internet India Fund, 500 Startups, and Proudly Made to begin giving their early-stage businesses customer support tools so that they don’t have to worry about allocating their own money to CRM tools at those critical, early stages of growth.
Not unlike any other fund that provides growth services, value, or support to young businesses, Freshdesk is looking to give startups a painless way to start generating customer love early on in their growth.
So what does the Future Fund offer? Qualifying startups (any company that has under $1 million in annual revenues is welcome to apply, it’s not limited to the accelerators we mentioned earlier) will get up to three full-time customer support agents free for an entire year as part of Freshdesk’s “Garden” plan. The plan includes multi-channel support, which startups can use to support customer relation management through email, phone, their website, Facebook, and Twitter from one dashboard.
This means that they can view and manage queries, lead or sales questions, ticketing functionality, as well as community management capabilities that allow teams to engage customers in discussion forums and let early adopters suggest and vote on ideas. Startups with multiple brands or product lines can support their brands through a single account.
Freshdesk is supporting the fund from its internal revenues, and although it’s not disclosing rev growth, the team did say that it was supporting 700 companies as of April, which has doubled since February. With its Future Fund, Freshdesk believes that it’s doing a community service by way of a free service that lets young businesses focus on their product while maintaining quality customer support, but this is also very much an initiative that it hopes will introduce SaaS support to a new generation of companies, which it will try to convert to paying customers when the year of free service expires.
Like others, Freshdesk is free to start, with a tiered pricing scheme that escalates based on the number of agents and customization features a business needs. More on pricing here.
For startups looking to participate in the Future Fund, check out its landing page here.