Salesforce.com Inc., the cloud-based CRM software company, yesterday projected full-year revenue for its current fiscal year ending in early 2019 of just over $13 billion, as total Q3 revenue grew 25.6%. But its marketing and commerce software—which includes its B2B and retail e-commerce software products—grew even faster at 37.3%.
Marc Benioff, chairman and co-CEO, said on a conference call with stock analysts yesterday that the company’s Marketing and Commerce Cloud software suite has been “growing extremely well.” Part of that growth, he added, comes from increased interest in client companies that want to use integrated data from the multiple Salesforce cloud software suites for managing such areas as sales contracts, customer service and web analytics, as well as marketing and commerce.
The company’s Commerce Cloud software includes the B2B and retail software it acquired in recent years through its purchases of CloudCraze and Demandware. Companies running Salesforce Commerce Cloud software include chemicals distributor Univar Inc. and manufacturer and marketer Kellogg Co.
“Our organizing principle is that we’re here to tie it all together to give you a 360 view of your customer, and that’s what is unique for Salesforce,” Benioff said, according to a transcript of the call provided by Seeking Alpha.
Benioff and co-CEO Keith Block said on the call that, because of the strength of the company’s fiscal third quarter ended Oct. 31, Salesforce had increased its revenue guidance to a range of $15.9 billion to $16.0 billion for the next fiscal year ending in early 2020, up about 21% from its guidance of about $13.2 billion for the full fiscal year ending in January 2019. Salesforce reported $10.5 billion for its fiscal year ended Jan. 31, 2018.
For the third fiscal quarter ended Oct. 31, Salesforce reported:
- Marketing and Commerce Cloud revenue increased 37.3% to $489 million from $356 million;
- Sales Cloud revenue increased 11% to $1.020 billion from $921 million;
- Service Cloud increased 24% to $917 million from $738 million;
- Salesforce platform and other revenue increased 51% to $742 million from $491 million’;
- Total revenue increased 25.6% to $3.39 billion;
- Gross profit increased 26.0% to $2.503 billion from $1.987 billion, resulting in a gross profit margin of 73.8%, up from 73.6%;
- Net income dipped 1.9% to $105 million from $107 million.
For the nine months ended Oct. 31, Salesforce reported:
- Marketing and Commerce Cloud revenue increased 38.5% to $1.363 billion from $984 billion;
- Sales Cloud revenue increased 13.1% to $2.989 billion from $2.642 billion;
- Service Cloud revenue increased 26.9% to 2.657 billion from $2.094 billion;
- Salesforce platform and other revenue increased 47.2% to $2.029 billion from $1.378 billion;
- Total revenue increased 36.3% to $9.679 billion from $7.098 billion;
- Net income increased nearly five-fold to $748 million from $154 million.
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