![]() Slack, for example, expected to hit $1.6 billion in sales in FY 2023 without the Salesforce deal, according to a regulatory filing. ![]() “I think it’s consensus at this point that Salesforce overpaid for Slack,” said RBC Capital Markets analyst Rishi Jaluria.īut the price point may not have been a sticking point if the performance was different. Others still remain concerned over the $27 billion Slack acquisition, which was viewed by a portion of the investor community as an overly expensive ploy for growth and relevance, while some still want to see the company do another big deal to expand the portfolio and bolster sales. That maybe means the growth profile is no longer what it was.” “Maybe a more mature Salesforce is surfacing. “Right now Salesforce has been in between growth and value investors,” said Wells Fargo analyst Michael Turrin. ![]() And last August, it issued its first repurchase program. Notably, that margin target would be inclusive of any acquisitions, per chief financial officer Amy Weaver. It’s why the announcement of a 25% operating margin goal by 2026 was tepidly embraced on the stock market. Some will simply want to see operational improvement and share repurchases. “I don’t see how they hit that $50 billion … It’s just not gonna happen.” But outside the product itself, Salesforce’s age, along with a worsening market for enterprise software, is also leading some investors to pressure the company to transition away from growth mode - which typically means available cash is funneled to fuel higher sales - to a more sustainable return for investors. That maturity has required key architectural shifts as technology needs and capabilities evolved, which would be demanded of any tech company of that tenure. I wish.”Īt 23 years old, Salesforce is a mature collection of software. “I don’t see how they hit that $50 billion … It’s just not gonna happen,” said Guggenheim Partners analyst John DiFucci. Ultimately, there is serious uncertainty over Salesforce’s ability to hit Benioff’s targeted goal of $50 billion by fiscal year 2026. Instead, as the dancing mascots hang up their costumes and the hangovers subside, Salesforce is left facing important questions about its product strategy and growth potential ahead amid a broader downturn in the enterprise software market. And true to form, Salesforce also had shiny new-ish products to unveil that could expand its reach across business software and help plug key gaps in the existing suite of tools.īut this year, the reception wasn’t as overtly positive. We kind of knew it was coming,” Benioff said at the event. “We did $7.7 billion this quarter in revenue, and they did $7.5. In a show of its growth, Benioff and Taylor touted Salesforce passing SAP - for one quarter, based on revenue - as the world’s largest enterprise IT app provider. This year, “It’s a new day for Dreamforce, a new day for Salesforce.” “Dreamforce is the center of the Salesforce economy,” co-CEO Bret Taylor told attendees at its annual investor meeting during the event last week. ![]() Every year, alongside frustrating San Francisco residents, the over-the-top celebration serves as a battle cry to the enterprise software industry, reminding everyone that Marc Benioff’s mighty fiefdom is poised to expand even deeper into your corporate IT stack. The company said everything customers wanted to hear and did everything investors wanted to see: It produced robust, consistent growth from groundbreaking products combined with an aggressive M&A strategy and a cherished culture, all operating under the helm of a bombastic, but respected, CEO and team of well-coiffed executives.ĭreamforce is the embodiment of that success. Salesforce has long been enterprise tech’s golden child. ![]()
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