Salesforce’s performance by the first quarter of the 2019 fiscal year has proven to be quite impressive with more than $3 billion in reported revenues. Over the year, the company saw a 25% increase in their overall revenues with stock prices increasing by 4% as a result of the announcement. With the company continuously performing and exceeding their projected revenues by a significant amount, Salesforce has become an entity worth watching out for.
First Quarter Highlights
Service Cloud emerged as Salesforce’s best performer with a reported growth of almost 30% in a year. However, Sales Cloud still holds the top spot when it comes to the most popular product category; contributing most to the company’s overall earnings.
With first quarter projections easily being exceeded, the company decided to increase their revenue guidance for the succeeding quarter by $75 million. During the first quarter, recorded revenues, both earned and unearned, went up by 25%. Operating cash flows increased by 19% and transaction prices for future revenues went up by 36%.
How Did Salesforce Achieve This?
Salesforce held onto the recognition as being the best CRM platform available today and have done so for five year running; and this can easily be attributed to their continuous growth as a company. Their CEO also suggests that part of their success may have come from their consumer-focused nature and their ongoing research and development efforts for their technology product.
As per Marc Benioff, Salesforce’s CEO and Chairman of the Board, they will continue to focus their efforts on improving customer service and satisfaction as doing so have yielded them the kind of business growth and revenues that other tech companies could only dream of. And with their new upgrades for the platform plus improved analytics component, Einstein, surely there are more things to look forward to from Salesforce.