So where does Salesforce go from here? It’s sights are set on displacing SAP as the largest enterprise software company in the world. But with the realization that remote working is here to stay, shareholders are warming up to Slack being a part of Salesforce’s product portfolio and the company shares are up 21% since the deal was signed. The initial reaction to the Slack deal was tepid with Salesforce’s shares falling 8% the day after the deal was announced back on December 1st 2020. For the remaining two quarters, it expects Slack to contribute $530M to the top line. Salesforce is looking to drive profitability at scale for Slack. At the end of Q2, Slack had 169K paid subscribers, but that’s not an apple-to-apple comparison with Teams’ 250K monthly active users which includes paid and unpaid subscribers.įor Q2, Slack’s standalone revenues stood at $273.4M, up 36% Y-o-Y. Salesforce’s acquisition of Slack puts the company in direct competition with Microsoft Teams. If anything, the management only sees it as a further impetus to accelerate its business. How bullish the company’s management is evident from just one tidbit: the company does not find the Delta variant to be material to its business. And in so doing, the company has easily surpassed the likes of IBM, Oracle, and Intel in terms of market cap.
The Slack deal just got done last quarter.Įach of these acquisitions has become a billion-dollar annual revenue-generating business for Salesforce. The following year, data visualization company Tableau was snapped up for $15.3B. In 2018, it paid $6.5B to acquire MuleSoft, the leading platform for building application networks.
This cloud tool helps maximize banker efficiency and productivity while ensuring compliance and client engagement.Īcquisitions have been an important strategy for Salesforce. This past quarter, Salesforce expanded its offerings to include investment banks through its Corporate and Investment Banking for Financial Services Cloud.
The operating margin for the year is expected to improve to 1.8% (from 1.4%). $6.24B expected – the highest ever in a quarterįor the full year 2021, revenue is expected to be around $26.25B and EPS around $4.37, both ahead of analyst estimates. Salesforce beat expectations for the May-July quarter as the shift to hybrid work kept demand for its cloud-based software strong. ( Tweet This) Acquisitions: A Core Strategy Value creation for the shareholders seems to be in full swing at one of the most valuable software companies. It recently completed the acquisition of Slack for $27.7B and raised the guidance for the year. ☁️ Salesforce: No Slacking Off On Growth?Ĭloud software company Salesforce Inc.
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