So Salesforce just cruised past $24 Billion (!) in ARR & a $200B market cap, still growing 20% (!)
With 20% growth, it has to add $5B of new revenue each year. That's like 20 Unicorns!
5 Interesting Learnings: ⬇️⬇️⬇️⬇️⬇️
With 20% growth, it has to add $5B of new revenue each year. That's like 20 Unicorns!
5 Interesting Learnings: ⬇️⬇️⬇️⬇️⬇️
#1. Its Classic Sales/CRM Product is Now Just Its >Third< Largest Product
This trend has been true for a while, and now both its Service Cloud and its Platform group are bigger AND faster growing than the classic CRM product we all know and use
This trend has been true for a while, and now both its Service Cloud and its Platform group are bigger AND faster growing than the classic CRM product we all know and use
Amazingly, Salesforce is now more a Service Cloud company than a Sales Cloud / CRM company
Sales Cloud is just 20% of its revenue -- and going down.
A reminder you really need to add a 2nd product after $1B ARR
Sales Cloud is just 20% of its revenue -- and going down.
A reminder you really need to add a 2nd product after $1B ARR
#2. Europe is on fire for SaaS.
EMEA sales not only crossed a $4.5B run rate, but are growing 31% — vs. 20% overall for Salesforce.
Yes, the time zones can be tough. But if you have traction in Europe, lean in!!
EMEA sales not only crossed a $4.5B run rate, but are growing 31% — vs. 20% overall for Salesforce.
Yes, the time zones can be tough. But if you have traction in Europe, lean in!!
#3. Only 6% of Revenue from Professional Services — Which They Lose Money On.
While most Salesforce implementations require a lot of professional services, Salesforce has intentionally pushed almost all this work to its implementation partners.
While most Salesforce implementations require a lot of professional services, Salesforce has intentionally pushed almost all this work to its implementation partners.
The pro serv Salesforce is still stuck doing itself are negative gross margin
Still, others such as Qualtrics & Veeva have managed to make services profitable enough to keep their revenues “in-house”
There’s no one answer here. You do it, or someone else does it in enterprise
Still, others such as Qualtrics & Veeva have managed to make services profitable enough to keep their revenues “in-house”
There’s no one answer here. You do it, or someone else does it in enterprise
#4. Churn Still a Bit Elevated Since Covid
While most SaaS leaders have seen a resumption to pre-Covid levels of churn, both Salesforce and Zendesk are still seeing relatively low churn — but higher than pre-Covid
While most SaaS leaders have seen a resumption to pre-Covid levels of churn, both Salesforce and Zendesk are still seeing relatively low churn — but higher than pre-Covid
#5. Doubling By 2026 to a stunning $50B ARR.
Salesforce has not only projected continued 20%+ growth for next year, but has compounded it out the next few years to $50B in ARR by 2026.
The truly awesome force of recurring revenue.
Salesforce has not only projected continued 20%+ growth for next year, but has compounded it out the next few years to $50B in ARR by 2026.
The truly awesome force of recurring revenue.
And a bonus note:
#6. Slack matters!
With a plan to grow 20% yearly, Salesforce has to add $5B+ next year. Slack will be $600m of that in fiscal ’22 & much more following year
Put differently, Salesforce needs M&A to hit its growth plan. It might not have made it w/o Slack
#6. Slack matters!
With a plan to grow 20% yearly, Salesforce has to add $5B+ next year. Slack will be $600m of that in fiscal ’22 & much more following year
Put differently, Salesforce needs M&A to hit its growth plan. It might not have made it w/o Slack
Not too shabby!
-> 21 Years to $24B in ARR (!!)
-> Still Growing 20% (!!)
-> $50B ARR in 2026 (!!)
More here:
saastr.com/5-interesting-…
-> 21 Years to $24B in ARR (!!)
-> Still Growing 20% (!!)
-> $50B ARR in 2026 (!!)
More here:
saastr.com/5-interesting-…
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