Marketo CEO Reacts to Salesforce Purchase of ExactTarget

Phil Fernandez on Mad MoneyMarketo CEO, Phil Hernandez, was interviewed on CNBC’s Mad Money hosted by Jim Cramer.  Here is what Hernandez had to say about the recent Salesforce.com deal to acquire ExactTarget for $2.5 Billion.

CRAMER: Mr. Hernandez, you’re a competitor to ExactTarget. Last week, Salesforce.com bought ExactTarget. What is to keep Salesforce.com to say stop using Marketo.

FERNANDEZ: It’s been a super competitive market since we founded the company six years ago and we’ve been the fastest growing and we continue to be the innovator and the leader. So we’d expect probably some kind of move from Salesforce with this new acquisition, but we’ve competed with ExactTarget for some time like the way we compete and expect to continue to compete really favorably with them going forward.

CRAMER: Now, you have not been making money, but you’ve been growing the revenues. At what point do you say, look, we’ve got to start making money even if it means revenue growth, no longer can be as aggressive as it’s been?

FERNANDEZ: I got asked that about 70 times two weeks ago, I thought I was done with that.  I  think the signals are as long as customer retention is good, acquisition costs are good and growth rates are the kind we’ve seen. The signals from the market and they want to see us continue to grow at maximum possible rates. As we look forward, with certainly see the ability to get those lines to cross. We take the foot off the gas on trying to grow revenue and the sheer mass of the installed customer base and the cash flow from a subscription based, cloud-based business lets us outlook that profitability down the road.

Click here to view the entire CNBC interview with Phil Hernandez.

Click here to read more about Salesforce.com Purchase of ExactTarget.

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