Business Cloud News reporting on impressive sales number for cloud-solutions provider, Salesforce.
Salesforce posted revenues for the quarter ending January 31, 2015 of $1.44bn, a 26 per cent year on year increase with annual revenues reaching $5bn, with future outlook bolstered by anticipated demand for the company’s marketing cloud services.
Full fiscal year 2015 revenue was $5.37bn , an increase of 32 per cent year on year, subscription and support revenues were just over $5bn, an increase of 31 per cent year-over-year, and professional services and other revenues were $36m, an increase of 46 per cent year-over-year.
The company, now the sixth largest software company in the world according to Salesforce chief executive Marc Benioff, is projecting full year revenues for fiscal 2016 to grow between 20 and 21 per cent to $6.475bn and $6.52bn.
The firm has about 2 million developers writing apps for the AppExchange, which has more than 2,600 apps deployed on it.
Multiyear deals have played a huge role in Salesforce’s performance this year. It closed nearly 550 seven and eight-figure transactions, roughly 100 more than last year.
“My dream is crystal clear to be the first in the cloud and fastest to $10 billion in software and then onward,” Benioff said in a call with press and analysts. “This company is so much more than our six apps. It’s really our ecosystem that continues to fuel our growth and the company has done a fantastic job building a platform, and not an application.”
Benioff said the company is particularly pleased with traction in its Analytics Cloud, which Salesforce vice chairman and president Keith Block said was down to how the service enables customers with large legacy SAP, Oracle, and Microsoft datasets to “unshackle” them and make more effective use of its cloud services – “right in SAP’s backyard.”
Kara Ordway, an analyst at City Index told BCN the results offered few surprises and are in-line with previous growth rates seen by Salesforce.
“Going forward Salesforce looks well positioned to take advantage of one of the fastest growing markets in technology and is set reap the benefits of its expansion into the fast growing European markets,” Ordway said. “However Salesforce is yet to fully explore the advantages of geographic revenue diversity which is where the opportunity sits for the future.”
Still, Ordway said the company is betting on on stronger demand for its web based sales and marketing software and services, and that strategic alliances – like the one it inked with Microsoft last year – will likely accelerate the growth it already enjoys.