US-based CRM major Salesforce has reported revenue of $3.01 billion (+25 percent) fuelled by subscription and support revenues of $2.81 billion that grew 27 percent in Q1 of 2018-19.
Salesforce generated $965 million from sales cloud, $848 million from service cloud, $575 million from platform business and $422 million from marketing and commerce cloud in the first quarter.
Americas contributed 70 percent of Salesforce revenue, while the balance 20 percent came from Europe and 10 percent from Asia Pacific including China and India. Asia Pacific region contributes $299 million to Salesforce revenue, while Americas brings in $2.101 billion and Europe $609 million.
Salesforce, which competes with SAP, Oracle, among others, has raised fiscal 2019 revenue guidance to $13.075 billion to $13.125 billion.
“Salesforce delivered more than $3 billion in revenue in the first quarter, surpassing a $12 billion annual revenue run rate,” said Marc Benioff, chairman and CEO of Salesforce.
Salesforce said it delivered nearly two billion AI predictions per day with the newly launched AI tool Einstein.
TBR senior analyst Kelsey Mason said Salesforce crossed the $3 billion quarterly revenue mark, growing 25 percent while achieving a 6.4 percent operating margin.
Salesforce signed its largest deal in company history, indicating that customers globally are buying into Salesforce’s digital transformation promise with larger and more comprehensive deals.
The acquisition of MuleSoft enhances this promise by allowing customers to unlock data housed in disparate and legacy systems and creates a new cross-selling avenue for Salesforce to drive topline revenue.
Salesforce’s digital transformation promise is flanked by vertical innovation and ecosystem support. Salesforce experienced strength in key verticals such as financial services and public sector, and key partners such as IBM Bluewolf continue to expand their Salesforce-dedicated practices.
