Software giant Salesforce.com announced a truly robust fiscal 2016 1st quarter reports on 20th of May. The firm carried on to disregard the law of hefty numbers as its revenues were said to expand by 23 per cent year after year, to touch an all-time high of $1.51 billion in the very 1st quarter. Statistics show that the company’s revenue growth seemed to be at the upper end of the firm’s guidance of 21 per cent to 23 per cent. Deferred revenue went on to expand at more than 30 per cent, and the point to be noted here is that, 30 per cent of the top transactions were net new during the quarter. This implies that there is no likelihood of the company’s business to slow down to achieve a growth rate proportionate to its size. In reality, the firm has gone beyond the estimated $6 billion revenue in the very first quarter.
Aiming High and Reaching It
Software Mogul Salesforce.com has always been high on ambition and it has expended almost 50 per cent of its revenue on marketing and sales alone. Agreed that fueling its ambition has been an expensive affair, but its endeavor has not gone to a waste. Statistics reveal that the cloud software pioneer’s annual revenue growth over the past decade has actually, averaged 41 per cent and the company is well set to go beyond $7 billion mark in the present fiscal year. Inspired by the ceaseless and relentless growth, the firm is now focusing on achieving $10 billion milestone.
Leap in Stock Prices
The cloud software giant’s stock has gone up over 6 per cent within a few hours after the earnings report was announced that established the fact that the firm is making steady progress and is growing consistently and solidly. The present trading price is supposed to be $74.79, and the stock is at a record high from the point of view of closing prices. Last month the stock had risen to around 12 per cent in a matter of a day when it was reported that advisers had been hired by Salesforce to negotiate a likely takeover bid. The firm however, never confirmed this takeover bid report and somebody is yet to disclose who was responsible in coming up with the bid.
In the first quarter across all four product categories, Salesforce had attained strong growth. The Sales Cloud accounting for almost 50 per cent of Salesforce’s Support and Subscription revenue, expanded by only 9 per cent year on year, which supposedly was the lowest revenue growth across all four segments. From the constant currency point of view however, the Sales Cloud’s growth was in double digits. The Sales Cloud currently is on a yearly revenue run rate amounting to $2.5 billion. Moreover, its rapidly growing size is adversely affecting revenue growth. Irrespective of that, Salesforce’s Sales Cloud still continues to be number 1 in Sales Force Automation. Salesforce test data loader helps you to populate data directly in the test methods used by you. You do not actually require writing numerous lines of code.
Across the remaining three segments that include the Analytics Cloud, revenue in the 1st quarter expanded around 30%. The company has secured some celebrated customers such as Tyco and Barclays. It is believed that the Analytics Cloud is in for a significant upgrade that would be made public in Salesforce’s Dreamforce conference to be held in September 2015.