The good times have continued to roll this year for Sales force With all the ingredients needed for a highly successful cloud company – steady revenue growth, expanded product range and acquisitions. The company also opened doors to its shiny new headquarters, Salesforce Tower in San Francisco, A testimony to its enormous economic power in the city.
Sales force, And group Target revenue of $ 10 billion A few years ago already on its way to 20 billion. Having Salesforce is also a proof that you can be ruthlessly good at what you do, while trying to do the right thing as an organization.
Make no mistake, Mark Benioff Keith Block, the company's co-CEO, wants to get obscene money, and a group of analysts say earlier this year that their goal by 2034 would be A $ 60 billion company. Salesforce just wants to do so through a glimpse of empathy by inflating those big companies and keeping competitors with good capabilities like Microsoft, Oracle and SAP.
Look at the numbers
In the end, a publicly traded company like Salesforce will be judged by how much money it makes, and Salesforce turns out to be good at this, as it has shown again this year. Company Grown every three months More than 24 percent year-on-year, and ended the year with revenue of $ 12.53 billion. Based on the fourth quarter of $ 3.39 billion, the company ended the year on the operating rate of $ 13.56 billion.
This compares to $ 9.92 billion of total revenue for 2017 with a closing rate of $ 10.72 billion.
Even with this steady growth trajectory, it may take some time before it reaches $ 5 billion a quarter, realizing the $ 20 billion goal. Keep in mind that the company took three years to reach $ 1.51 billion in Q12016 to $ 3.1 billion in Q12019.
As for the stock market, it has been very volatile this year, but Salesforce is still high. Starting at $ 102.41 a year, he was sitting at $ 124.06 at the time of publication, having formed a peak on October 1 at $ 159.86. The market has been on a land trip ever since Cloud stock has been hit hardOr justifies or not. On one particularly bad day last month, salesforce sales were the worst days since 2016, losing 8.7 percent,
When you make a lot of money you can spend generously, the company invested some of those big bucks when Mulesoft bought for $ 6.5 billion In March, making it the most expensive acquisition ever made. With Mulesoft, the company was having a missing link between the data in the data centers and Salesforce data in the cloud.
Mulesoft helps customers access data wherever they live across APIs. This includes old data in the old data repositories. While Selzors is moving towards artificial intelligence and automated learning, it requires a lot of data, and it was useful for Mulesoft to open the wallet to provide the company with this type of Access a variety of enterprise data.
But Mulesoft was not the only thing Salesforce bought this year. I made five acquisitions in everything. The other important came in July when Dataorama harvested To cool $ 800 million, giving it a market intelligence platform.
What can be on board the 2019 plane? If Salesforce commits itself to its last spending pattern in a year and then regroups the following year, 2019 may be slower in acquisitions. Suppose they bought only one company last year after buying twelve companies in 2016.
Another way to maintain income returns comes from high-level partnerships. In the past, Salesforce collaborated with Microsoft and Google, and announced this year that it was cooperating With Apple. Salesforce also announced another High ranking with AWS To share data between the two platforms more easily. The hope for these types of cross-fertilization is that companies can increase their business. For Salesforce, this means using these partnerships as a platform to move the profit needle faster.
Even as his company made big profits, Benioff preached compassionate capitalism using Twitter and the media as a soap box.
He went round this year Support stent c, A referendum designed to help fight San Francisco's massive homeless problem by taxing companies with revenues of more than $ 50 million – such as Salesforce. Benioff was an outspoken supporter of the idea and won it. No honest spirits were found among some of his colleagues in San Francisco, Public discussion Twitter CEO Jack Dorsey on Twitter.
Talking about Prop C In an interview with Kara Swisher of Recode In November, Benioff spoke in lofty terms about why he believed in the measure, although it would cost his company money.
"You have to really think and think about what you want your company to be and what you do with your business and here in Salesforce, and that's very important for us," he told the interview. .
He also talked about how employees at other technology companies led their CEOs to change their views on social issues, including Prop C, but Benioff had to deal with his internal rebellion this year when 650 employees signed a petition urging him to rethink Hold Salesforce with US Customs and Border Protection (CBP) in view of current border policies of the current administration. Benif defended the contract, noting that the Salesforce tools were used internally at the CBP to recruit and connect staff rather than to apply border policy.
Regardless, Salesforce has not lost its focus on meeting noble revenue targets. As we approach the new year, there is no reason to believe that this will change. The company will continue to look for new ways to expand markets and keep its revenues close to the $ 20 billion target, even as it continues to mix its unique form of compassion and capitalism.