Look at the income statement, especially the sections on expenses, and marketing and selling expenses, and best of all "net income from OPERATIONS"...it's negative. How do you get to $1.3 earnings in 2012 if you're 6 mo. operating run rate is negative?
they exclude non-cash expenses like intangibles amortization and stock-option expenses. I don't necessary have an issue with this since cash earnings is where it is at. However, even on a non-GAAP basis they only grew earnings 3% on 38% revenue growth - that is simply poor performance. 3% earnings growth does not justify the massive CRM P/E multiple. I am even more confident about my short position and will be shorting any strength when the market takes it up the on the revenue growth headline number but you have to be able to convert the revenue into profit and they did miserably this quarter.