- Main article: Salesforce
- Acquisition and sale of Salesforce assets
2022: Revenue growth by 25% to $26.49 billion
Salesforce completed fiscal year 2022 with record revenue of $26.49 billion, which is 25% more than a year earlier. Revenues from sales of subscriptions ON and related support services increased by 23% to $24.66 billion. All kinds of professional services and other sources of earnings brought the company $1.84 billion in revenue, which is 44% higher than a year ago. Financial the results of the American company were published in early March 2022 calendar year.
During the reporting 12-month period, Salesforce Sales Cloud solutions provided the company with revenue of $5.99 billion against $5.19 billion a year earlier. Sales of cloud products Marketing and Commerce Cloud increased from $3.13 billion to $3.9 billion. In the direction of Platform and Other, an annual growth in turnover was registered from $3.32 billion to $4.51 billion, it also includes $584 million in revenue received from sales of subscriptions and support services for the Slack corporate messenger, which was previously acquired by Salesforce for $27.7 billion.
The main sales market for Salesforce solutions remains the countries of the Americas. In this region, the company's revenue for the 2022 fiscal year amounted to $17.98 billion, increasing from $14.74 billion a year earlier. Revenues in Europe increased from $4.5 billion to $6.02 billion, in the Asia-Pacific region - from $2.02 billion to $2.49 billion.
Salesforce's net profit in 2022 was $1.44 billion, down almost three times the profit of a year ago of $4.07 billion.
By the end of January 2022 of the calendar year, Salesforce had accumulated cash and cash equivalents in the amount of $10.5 billion, which is 12% less than a year earlier. The number of employees of the company during this time increased by 30% to 73,541 employees.[1]
2021: 13th place in the world among ICT developers by revenue
According to Synergy Research Group, the total revenue of the 13 largest manufacturers of software and ICT services for business, including telecom operators, in this market reached $613 billion in 2021, which is 10% more than a year earlier. Salesforce took 13th place in this list.
2020: Revenue growth by 24%, to $21.25 billion, profit - $4.07 billion
The result of Salesforce's work in fiscal 2021 was a 24 percent increase in revenue compared to 2019 - up to $21.25 billion (for the first time it exceeded $20 billion). The sale of subscription software and support services associated with these products brought the company $19.98 billion, which is 25% higher than a year ago. Income from the provision of professional services (all other sources of earnings are also included here) increased by 21%, to $1.28 billion.
The business developed by Salesforce in the field of cloud services for organizing sales and marketing in 2021 financial year registered revenue in the amount of $5.19 billion against $4.6 billion a year earlier.
In the direction of Service Cloud, revenues increased year-on-year from $4.47 billion to $5.38 billion. In the direction of Marketing & Commerce Cloud, Salesforce's annual revenue increased from $2.51 billion to $3.13 billion, and platform solutions added $6.28 billion to the company's revenue against $4.47 billion in 2020 (this includes revenues from other products that were not included in the Sales, Service and Marketing & Commerce Cloud directions).
The lion's share of Salesforce sales continues to fall on the countries of the Americas, which provided the company with revenue of $14.74 billion according to the results of fiscal 2021 against $12.05 billion a year ago. Revenues in Europe grew from $3.43 billion to $4.5 billion, in the Asia-Pacific region - from $1.62 billion to $2.02 billion.
Salesforce's net profit in 2020 reached $4.07 billion, while in 2019 such profit amounted to $126 million.
According to CNBC, on the day the financial statements were published, Salesforce shares fell 4% in price in electronic trading, despite earnings that exceeded analysts' expectations. The reason for the drop is that the company did not meet its full-year profit forecast without taking into account the impact of the purchase of Slack.[2]
2019: Revenue growth by 29% to $17.1 billion
In fiscal 2020, which ended at the end of January 2020, Salesforce's revenue reached a record $17.1 billion, an increase of 29% compared to the previous year.
Sales of software subscriptions and product support services brought the company annual revenue of $16.04 billion, which is 29% higher than a year ago. In the direction of professional services, a 21% increase in turnover was registered - up to $1.06 billion.
According to data from the financial statements, the countries of the Americas brought the company 71% of revenue at the end of 2020 or $12.05 billion. A year earlier, these figures were measured at 71% and $9.45 billion.
Sales of the company in Europe increased from $2.55 billion to $3.43 billion and provided the company with revenue by 20%. In the Asia-Pacific region, the volume of Salesforce's business in the 2020 financial year amounted to $1.62 billion, an increase in 2019 revenue of $1.28 billion. This region accounted for 9% of IT vendor sales.
As for products, most of the company's revenues are still formed by Sales Cloud solutions (cloud services for organizing sales and marketing) - $4.6 billion was earned on them in fiscal 2020. In 2019, sales amounted to $4.04 billion.
Service Cloud solutions brought the company $4.67 billion in annual revenue compared to $3.62 billion a year ago. In the direction of Marketing and Commerce Cloud, there was an increase in turnover from $1.9 billion to $2.51 billion. Finally, in the Salesforce Platform and Other segment, revenue also increased significantly - from $2.85 billion in 2019 to $4.47 billion a year later.
Salesforce completed the 2020 financial year with a net profit of $126 million, which falls far short of profit in 2019. The company did not name the reason for this decline in its official account.[3]
On the day the financial results were published, the company's shares fell 3% in price.
2018: Revenue growth by 26% to $13.28 billion
In fiscal 2019, the end of which fell on January 31, 2019, Salesforce's revenue amounted to $13.28 billion, an increase of 26% compared to the previous year. About the same rate of sales growth at the company took place in previous years.
Most of the turnover was revenue from sales of software subscriptions and support services - $12.41 billion. Compared to the financial year 2018, there was a 26 percent increase. On professional services and other sources of income, the company earned $869 million, which is 12% higher than a year ago.
The Sales Cloud family of products used to organize sales brought Salesforce about $4.04 billion in revenue against $3.59 billion in fiscal 2018. In the direction of Service Cloud, revenues increased from $2.88 billion to $3.62 billion, in Salesforce Platform and Other - from $1.91 billion to $2.85 billion, in Marketing and Commerce Cloud - from $1.38 billion to $1.9 billion.
As for the regions, the largest turnover (72%) still falls on the countries of the Americas. In 2019, it was about revenue in the amount of $9.45 billion, and a year earlier - about $7.62 billion. In Europe, the company received $2.55 billion in revenue compared to $1.92 billion a year earlier. In the Asia-Pacific region, revenues also increased year on year - from $1 billion to $1.28 billion.
Salesforce completed the fiscal year 2019 with a threefold increase in net profit, which reached $1.11 billion. The company invests in the development of artificial intelligence and analytical tools that help customers better use their data. As a result, research and development costs at Salesforce jumped from $1.55 billion in the 2018 reporting year to $1.89 billion a year later.
The company's financial performance was higher than Wall Street expectations, but the forecast for the first quarter of fiscal 2020 fell short of analysts' expectations, which led to a 4% drop in vendor quotes on March 4, 2019. In 2018, Salesforce securities rose by 30%.[4]
2017: First revenue of $10 billion
In fiscal year 2018, Salesforce received record revenue, which for the first time exceeded $10 billion. The company expects to double this figure by 2021.
During the reporting 12-month period ending January 31, 2018, Salesforce sales reached $10.5 billion, an increase of 25% compared to the previous year. Net profit decreased from $179.6 million to $127.5 million.
Annual revenues from sales of subscriptions for products and support services increased by 25% year-on-year, amounting to $9.71 billion. The company's revenue in the professional services market rose 21% to $769 million.
Most of Salesforce's revenue (72% in fiscal year 2018) comes from the Americas. The shares of Europe and the Asia-Pacific region accounted for 18% and 10% of annual income, respectively.
As for products, Sales Cloud solutions remain the largest for the company, which are used by customers to organize sales. Revenue from Sales Cloud for the reporting year exceeded $3.55 billion against $3.06 billion in fiscal year 2017. In the Service Cloud direction, revenues rose from $2.32 billion to $2.88 billion. On the cloud solutions Marketing and Commerce Cloud, the company earned more than $1.3 billion, while a year earlier the figure was measured at $933 million.
Salesforce continues to grow in costs due to the development of new markets in Europe and Asia. In fiscal year 2018, marketing and sales costs amounted to almost $5 billion, and total operating expenses - almost $7.5 billion.
 | We see accelerated development of our new business, although sales costs are increasing as a result of international expansion, increased commissions and increased hiring, "CFO Mark Hawkins said during a conference call with analysts. |  |
The company added that the emphasis is on five main countries and 25 cities, but in the future the geography will be expanded to 50 cities.[5]
2016: Return to Profit
At the end of February 2017, Salesforce published a report on the work for fiscal year 2017. The company returned to profit and increased revenue by 26%.
According to the results of the 12-month reporting period, which ended on January 31, 2017, Salesforce sales reached $8.39 billion against $6.67 billion a year earlier. Net profit amounted to $179.6 million, while in 2016 there were net losses equal to $47.4 million.
Revenues from sales of subscriptions for products and support services increased by 25% year on year - to $7.76 billion. The company's revenue in the professional services market rose 38% to $461.6 million. This included income from other minor sources.
According to Reuters, Salesforce revenues rose and were higher than market expectations due to strong demand for cloud services in the field of sales automation and marketing.
In 2017, the Salesforce.com revenue from the sale of key software products used by customers to organize sales rose by 13.3%, to $3 billion. This growth rate was higher than in previous years, and came as a surprise to analysts who consider this software outdated and, as a result, unable to stimulate an increase in revenue.
Experts attribute the high dynamics of the vendor in this segment to the introduction of new functions and the rise of the entire software market for sales automation.
| | We believe that there are still many opportunities for further growth, "said Wedbush analyst Steve Koenig. | |
The press release cites the words of Salesforce President and Operations Director Keith Block, who says that in fiscal year 2018, the company will overcome the $10 billion revenue mark, making it faster than any other corporate software manufacturer.[6]
2015: 5.5x loss reduction
On February 24, 2016, Salesforce.com published a financial report in which it reported a quarter increase in sales. The company also raised its forecast for annual income, which provoked an increase in its quotes.
According to Salesforce.com, in fiscal year 2016 (closed January 31, 2016 calendar year), the company's revenue amounted to $6.67 billion, which is 24% more than a year earlier. Excluding exchange rate fluctuations, revenue jumped 27%. The producer's net loss ON decreased 5.5 times to $47.4 million.
In the structure of annual revenue, Salesforce.com revenues from sales of subscriptions to its products and support services reached $6.2 billion against $5 billion in 2015. Sales in the professional services market rose to $461.6 million. This included income from other minor sources.
The most Salesforce.com earns from the Sales Cloud product: its implementation in fiscal year 2016 was measured at almost $2.7 billion. Revenue figures for Service Cloud and App Cloud products amounted to $1.8 billion and $1 billion, respectively.
The lion's share of Salesforce.com revenue - 74% in 2016 - falls on North and South America. In Europe and the Asia-Pacific region, income shares are 17% and 9%, respectively.
As the operating officer of Salesforce.com Keith Block noted, the fourth quarter 2016 of financial year was for the company record in terms of the number of contracts worth more than $1 million - they were more than 600.
In fiscal year 2017, Salesforce.com forecast revenue in the range from 8.08 to 8.12 billion dollars, while previously predicted $8-8.1 billion. Wall Street expects $8.08 billion in sales.
On February 24, 2016, when the Salesforce.com financial report was published, the company's shares rose by almost 9% during the extended session (after the official closure of the exchange). Since the beginning of 2016, cloud vendor quotes have fallen by 20%.[7]
2014: Revenue growth by 32%, loss $262.7 million
On February 25, 2015, the company Salesforce.com published a financial report on its activities. In calendar year 2014, the developer of the customer and partner relationship management system of the same name earned more than $5 billion for the first time and did this faster compared to competitors.[8]
For the fiscal year 2015, closed January 31, 2015, the Salesforce.com received revenue of $5.37 billion, which is 32% more than a year earlier. Excluding currency fluctuations, the indicator increased by 33%.
Despite a noticeable increase in sales, the business Salesforce.com remains unprofitable. Moreover, net monetary losses increase: in fiscal year 2014, they were measured at $232.2 million, and a year later reached $262.7 million.
Salesforce.com first received annual revenue of $5 billion
The lack of profit is largely due to the company's growing investments. In fiscal 2015, operating expenses of the American vendor jumped to $4.2 billion from $3.4 billion a year earlier. Most of the costs ($2.8 billion) came from sales organization and marketing. $792.9 million was invested in research and development.
Despite the unfavorable activity, Salesforce.com Chief Executive Officer Marc Benioff noted the company's success:
"Salesforce.com ended the next year with exceptional growth in revenue, revenue of future periods and operating cash flow - by more than 30%. At the same time, the operating profit margin for the non-GAAP system was higher than our expectations. Salesforce.com has achieved annual revenue of $5 billion faster than any other corporate software manufacturer, and now we are setting the goal of reaching $10 billion faster than anyone else. "
In the structure of Salesforce.com revenue for fiscal year 2015, a little more than $5 billion was spent on the sale of subscriptions and customer support services, while a year earlier the company earned about $3.8 billion. Sales of the American vendor in the professional services market increased from $246.5 million to $359.8 million.
As for the regions, the most Salesforce.com receives in the Americas (about 72% of revenue, the lion's part is in the United States). The shares of Europe and Asia-Pacific were 18% and 10%, respectively.
2013: Software developer No. 10 in the world with sales of $3.8 billion
According to Gartner, in 2013, the Salesforce.com with a turnover of $3.8 billion rose by two positions in the ranking of the largest software manufacturers, taking tenth place, and also showed the largest income growth in the top ten - 33%. Analysts are confident that already in 2014 the company's turnover will reach $5 billion.
2011: Revenue $1.66 billion
Financial results for the 4th quarter of 2011 fiscal year: income amounted to $10.9 million, or 8 cents per share (in the same period last year, profit was 16 cents per share). However, excluding corporate acquisitions and some other factors that negatively affect standard reporting, the yield was 31 cents per share. The total revenue for the fourth quarter amounted to $457 million, which is 29% higher compared to the same period of the previous year.
Salesforce.com profit in 2011 fiscal year amounted to $64.5 million with total revenue of $1.66 billion. The company expects revenue to surpass $2 billion in fiscal 2012. According to Marc Benioff, CEO of the company, the company will continue to acquire startups and increase its total revenue, which in the near future will be able to reach the three billion mark.
According to the results of fiscal 2011, Salesforce revenues from commercial subscriptions and support amounted to $429 million (31% higher compared to the previous year), deferred revenues - $935 million (33% higher). In the fourth quarter, the company managed to get 5,100 new customers, increasing their total number to 92,300.
Notes
- ↑ Salesforce Announces Record Fourth Quarter and Full Year Fiscal 2022 Results
- ↑ Salesforce Announces Strong Fourth Quarter and Full Year Fiscal 2021 Results Raises FY22 Revenue Guidance to $25.65 Billion to $25.75 Billion
- ↑ Salesforce Announces Record Fourth Quarter and Full Year Fiscal 2020 Results
- ↑ Salesforce Announces Record Fourth Quarter and Full Year Fiscal 2019 Results
- ↑ Salesforce Announces Record Fourth Quarter and Full Year Fiscal 2018 Results
- ↑ Salesforce.com forecasts lower-than-expected Q1 profit; shares fall
- ↑ Salesforce Announces Fiscal 2016 Fourth Quarter and Full Year Results
- ↑ Salesforce Announces Fiscal 2015 Fourth Quarter and Full Year Results
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