Salesforce proves yet again their market strength with a $3 Billion strike in their quarterly revenue. This new milestone in Marc Benioff’s cloud company was made possible by the various company acquisitions, the introduction of AI through Salesforce Einstein, and the deals signed with several high-profile companies from Europe.
Revenue Boost for Salesforce
The official Twitter page of Salesforce posted a tweet last May 29 about the big news of reaching $3 billion in revenues for the first quarter of 2018. The tweet goes on to say that this new milestone revenue surpassed the company’s usual annual revenue rates of $12 billion.
Salesforce recently enjoys a steady 28% increase off its deferred revenue balance. The deferred revenue is the amount of money gained from the sale of services and goods that are yet to be delivered. Since Salesforce products are largely subscription-based in nature, the company reaps significantly high amounts of dollars from deferred revenues.
How Did This Happen?
The sky-high revenues of Salesforce were made possible by these three factors:
Salesforce have amassed a number of company acquisitions since 2006. These acquisitions have helped Salesforce create various new features that made their own products and services better. Features that brought an impact to Salesforce users include Salesforce DMP, Marketing Cloud, Commerce Cloud, and Salesforce Einstein.
Incorporating artificial intelligence into Salesforce products made it eventually appealing to customers who want practicality and efficiency in their business processes. That’s why more people loved Salesforce even more when they introduced Salesforce Einstein, driving up their sales and revenues effectively.
Deals with large European companies
Salesforce won over the hearts of companies such as Adidas, as well as financial institutions like Spain’s BBVA and Germany’s Deutsche Bank. Business is indeed recently booming for Salesforce in Europe.
But apart from these three important driving forces, Salesforce credits their revenue boost to their organization’s values, ethics, and hard work.
The company is proud to put customer needs and satisfaction in the forefront as an inspiration for them to improve their products and services. They also treat their shareholders as their own community, acting together as continuing partners for the growth and benefit of everyone in the organization. Work culture is also important – for Marc Benioff, positive work culture is a strong driving force for productivity, which ends in better services, satisfied customers, and a heap of financial and emotional revenues in return.
Salesforce Aims Higher
Salesforce CEO Marc Benioff realizes that the revenue boost is a great start for Salesforce’s 2018 first quarter. He hopes to hit his dream of gaining a $20 billion annual revenue run rate, and he says that the recent boost is a good sign that his $20 billion dream will soon materialize.
To sum it all up, Salesforce ends their 2018 first quarter with a whopping $3 billion revenue, the largest they’ve ever had since the company started. Salesforce credits their customers, partners, community, and their work culture for this success.