Salesforce.com revenue surges 22% helped by big acquisitions

Salesforce.com reported revenue of $4 billion, registering growth of 22 percent, during the second quarter ended July 31 – powered by its big acquisitions.
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The San Francisco-based company said it expects revenue of $4.44 billion to $4.45 billion for the current quarter. Salesforce.com has also raised its revenue guidance to $16.75 billion to $16.90 billion during fiscal 2020. It previously forecast a range of $16.10 billion to $16.25 billion.

Salesforce acquired technology companies such as Tableau for $15.3 billion and MuleSoft for $6.5 billion, protecting its market share as it battles US-based software companies such as Microsoft and Oracle.

Salesforce said on Thursday it expects the Tableau acquisition, its biggest ever, to add value in the range of $550 million and $600 million for the year.

Tableau, which provides AI-enabled data analytics to companies like Netflix and Verizon, was acquired on Aug. 1 for $15.3 billion.

Chief Financial Officer Mark Hawkins said that the targeted revenue of $16.75 billion to $16.9 billion includes $550 million to $600 million from the acquisition of Tableau, $200 million from the purchase of Salesforce.org this year and $25 million from ClickSoftware, which Salesforce bought for $1.35 billion this month.

The company’s co-CEO Marc Benioff earlier said Salesforce would reach $26 billion to $28 billion in annual sales by fiscal 2023.

Salesforce.com revenue details

Salesforce.com’s subscription and support revenues rose 22 percent to $3.75 billion, while professional services and other revenues grew 14 percent to $252 million during the second quarter – powered by enterprise spending on digital transformation.

Salesforce.com generated second quarter revenue of $1130 million from Sales Cloud, $1087 million from Service Cloud, $912 million from Salesforce Platform and Other and $616 million from Marketing and Commerce Cloud.

Salesforce.com’s second quarter revenue touched $2816 million in Americas, $786 million in Europe and $395 million in Asia Pacific including China, India and Japan. Net income fell to $91 million, or 11 cents per share, from $299 million, or 39 cents per share, a year earlier.