MuleSoft Acquisition Powers Saleforce’s Year-End Earnings
Salesforce’s revenues maintained a torrid growth rate of 26% in the most recent quarter, placing the company on an annualized run rate of ~$15 billion! PaaS growth led the way at 49%, comprising 23% of revenues.
Salesforce clients should take note of the latest FY19 Q4 earnings as the company continues to put up astonishing growth numbers for a company that just finished the fiscal year at over $13B in revenue.
Key numbers to be mindful of:
- Overall revenue growth of 26% has remained stable over the past few quarters.
- Salesforce has revised FY23 revenue targets upwards to a range of $26-28B; a doubling of FY20 targets.
- PaaS revenues are the fastest growing segment, clocking in at a 49% YoY growth rate. This includes MuleSoft, App Exchange, and Lightning Platform revenues.
- Sales in Europe were up 31% amid a slowing EU economy; while other tech giants are struggling in Europe, Salesforce is thriving.
Salesforce pioneered the SaaS model long before it become the de facto standard. With the addition of PaaS growth and revenue and the MuleSoft acquisition, Salesforce has positioned itself to become the gold standard for running a business in the cloud. Salesforce has mirrored the on-premises ERP “suite” functionality of yesteryear, but is focused on the demand chain vs. the supply chain. And of course on a cloud-native platform.
While Salesforce’s growth continues to impress, clients should realize that audacious revenue goals also places pressure on the vendor to deliver. Take this into consideration when negotiating your next Salesforce deal to garner maximum value and flexibility for your organization.
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