We'd Chart Salesforce.com's PE Ratio for You, But Something's Missing -- Can You Guess?

Salesforce.com (CRM) reported second-quarter earnings Thursday. No surprises here: the company lost more money last quarter, $9.8 million versus the $4.3 million in lost this quarter last year.

The company lost 5% in after-hours trading, Reuters reported. Could it be, are investors who’ve popped the social media bubble starting to doubt the cloud computing company, as well?

CRM Chart

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We would be sympathetic. Salesforce seems like a fun but, well, kinda unsustainable place to work. We said as much here. It's hard to see how it can survive long term when competing against established companies like Oracle (ORCL), Microsoft (MSFT), IBM (IBM) and SAP (SAP).

Its latest report does not change that opinion. Last quarter sales were $732 million, up 34% year over year. But sales and marketing costs rose 65% to $44.8 million. R&D was up 44% to $16.1 million. General and administrative costs were up 40% to $16.7 million.

Of course, none of that matters to politicians looking to create all-important jobs. The same day Salesforce announced that losses more than doubled, the generous state of Illinois announced it’s giving Salesforce tax credits that barely cover the amount it burned through last quarter. Salesforce will be getting $10.4 million in tax credits over 10 years to expand in Chicago and hire 200 people. It will be moving into the River North neighborhood, a burgeoning tech hub, home to Chicago’s other tech stars like Groupon (GRPN).

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Mayor Rahm Emanuel says Salesforce “exemplifies the sort of company that will carry Chicago’s business community forward in the 21st century.”

CRM Net Income TTM Chart

CRM Net Income TTM data by YCharts

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