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Salesforce.com continues strong customer growth

Hosted sales management software provider Salesforce.com is closing in on 200,000 paying subscribers, an 80% gain in its customer base from this time last year, the company said as it announced its third-quarter financial results.

Salesforce.com edged past analyst expectations with quarterly revenue of $46.4m (£25m), up 82% from last year's third quarter, and net income of $2.2m.

Salesforce.com expects revenue of $172m to $174m in its 2005 finacial year, which ends 31 January.

While that is small compared with others in the CRM market - market leader Siebel Systems  had revenue of $1.4bn last year - Salesforce.com's rapid customer growth has drawn attention to its hosted, subscription sales model.

Its customer base is tilted toward smaller companies: As Salesforce.com grows, its average deal size remains around 15 licensed users.

Salesforce.com said it ended the quarter with 195,000 paying subscribers. For its 2006 finacial year, the company projected revenue of $275m to $285m.

Stacy Cowley writes for IDG News Service


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