I have just posted a YouTube video with a critical review of the quarterly results of Salesforce.com for the second quarter (Q2) of fiscal 2021. In the video I briefly look at the events of the week and the sales history of the company. Then I take a close look at the income statement and the income from operations. I then estimate how much of the Retained Earnings since February 1, 2007 was due to investment income and non-trading gains. I then take a close look at the unearned revenue balance and test it for reasonableness. In summary, their number seems reasonable and that liability account has probably not been used to pad current period revenues. I conclude by talking about the numbers that will be looked at in my next video, and I have some personal comments about their layoffs that were announced this past Wednesday.
Click here for a link to the video.
