They did it again. Salesforce exceeded its year over year quarterly earnings by a tidy amount. The numbers are 24 percent YOY growth on revenues of $2.85 billion. Full year revenue was $10.48 billion. Next year their guidance to financial analysts is revenues of $12.60 to $12.65 billion.
Stop for a minute. Do you know how hard this is to pull off? It’s not just that Salesforce exceeded $10 billion for the year, which was an important goal. It’s that they’ve been a growth company for almost two decades. Every year more corporations buy into Salesforce’s version of cloud computing for CRM, for ancillary applications from the AppExchange, and for building their own apps from scratch for a variety of platforms (all at once) ranging from the handheld device to the (dare we say legacy?) desktop.
Forgive me for going on, there will be no free steak knives at the end of this, but Salesforce has for many years been on of the very best companies on the planet to work for. And, again no parting gifts here either, they have built a business model that has philanthropy, a.k.a. doing good while doing well, built in.
To paraphrase Paul and Robert in “Butch Cassidy” “Who are these guys?!”
Okay, okay, they aren’t perfect. They change their marketing strategy as fast as most people change their socks. They’ve been a hosted CRM company, a SaaS company, a social company, a cloud company, they’ve embraced analytics and IoT as if they were the second coming. They’re also into teaching, training, making it possible for ever more people to use their stuff. They’re hard to keep up with.
But Salesforce, more than any company I know about seems to luxuriate in the idea of destruction as a means of creation. If something doesn’t work out exactly right, they have no problem scrapping it and finding something better. They grow because they embrace the new and the difficult.
But back to the degree of difficulty. It is hard, hard to put up better numbers year after year and do the other things but lately that’s become part of their appeal. Other, larger companies now go to Salesforce to discover their secrets and because their secret sauce is embedded in their software and how they use it, selling Salesforce is no longer about product. Actually, it’s still that but now it’s also about knowledge and culture transfer. That, combined with a subscription model that gets customers to commit to multi-year deals, suggests that this growth curve can extend well into the future. We’re seeing something special happening.
(Cross-posted @ Beagle Research Group)