Salesforce Q3 revenue surges 25% to $2.68 billion

Salesforce CEO Marc Benioff at Dreamforce 2017CRM company Salesforce posted revenue of $2.68 billion (+25 percent) fuelled by 25 percent growth in subscription and support revenue of $2.49 billion in fiscal third quarter ended October 31, 2017.

“Salesforce delivered a record third quarter, and we’re on a path to exceed $20 billion faster than any enterprise software company in history,” said Marc Benioff, chairman and CEO of Salesforce.

Salesforce said revenue for Q4 FY18 is projected to be $2.801 billion to $2.811 billion, an increase of 22 percent to 23 percent year-over-year. Salesforce said revenue for FY18 is projected to be $10.43 billion to $10.44 billion, an increase of 24 percent.

Salesforce said its revenue for FY19 is projected to be $12.45 billion to $12.50 billion, an increase of 19 percent to 20 percent.

TBR analyst Kelsey Mason said partners have played a large part in Salesforce’s ability to be seen as a trusted advisor to customers’ digital transformations, with half of new business being generated through the ecosystem.

“This engagement from partners helps Salesforce contain its sales and marketing expenses, which in turn enabled the company to elevate its operating margin higher than it has been in the last seven years,” Kelsey Mason said.

Meanwhile, Salesforce named Bret Taylor president and chief product officer, and Alex Dayon president and chief strategy officer.

Bret Taylor will be responsible for driving Salesforce’s product vision, design and development, and go-to-market strategy. Alex Dayon will lead strategic initiatives, working with Salesforce’s customers on product direction and transformation.

Bret Taylor is the co-founder and CEO of Quip, which was acquired by Salesforce in 2016. Prior to founding Quip, Taylor served as the CTO of Facebook, which he joined in 2009 after it acquired his social networking company, FriendFeed. Bret also spent several years at Google, where he co-created Google Maps.

Alex Dayon joined Salesforce in 2008, when the company he founded, InStranet, was acquired by Salesforce. During his nine-year tenure in Salesforce’s product organization, Dayon led the growth, expansion and evolution of Salesforce’s product portfolio.

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