Salesforce spends roughly half of every revenue dollar on sales and marketing, and that single accounting fact is why the company looks barely profitable when it is not. Treat the spend as an expense and the GAAP margin sits near zero; treat the portion that buys new contracted revenue as an investment — which is what it is, given an 8% attrition rate and therefore a 12.5-year customer life — and the marginal growth dollar carries an implied IRR of about 30%. This is a full institutional-grade equity research report on Salesforce, Inc. (NYSE: CRM), adapted from a 141-slide deck into a structured, chart-heavy analysis written from an owner’s perspective.
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