Closing in on $10 billion run rate
Salesforce have released their fourth quarter and annual results. Revenues for this quarter were $2.29 billion, up 27% year over year and up 28% in constant currency. The full year revenues were $8.39 billion, up 26% year over year. This led to Benioff commented on the next fiscal year revenues saying “for this fiscal year, we are going to more than $10 billion in revenue.”
Whether they will achieve this ahead of the Oracle cloud revenues we have yet to see but Salesforce will almost certainly hit that mark in one years time. Operating cashflow for the year was $2.16 billion and fourth quarter cash flow $706 million, up 29% year on year. The question is what they will do with it. There were more than a dozen acquisitions during 2016 including Demandware, Krux and Quip. There was no mention of further acquisitions during the analyst call. The reticence was probably due to the leak earlier this year about possible Salesforce targets.
Mark Hawkins summed up the stunning progress that Salesforce has made by commenting: “In addition to our outstanding top-line results, we also delivered our first ever $2 billion year of operating cash flow. To put these results in perspective, over the last three years, we have doubled our revenue, nearly tripled our free cash flow and improved non-GAAP operating margin by more than 400 basis points.”
Sticking it to Oracle
Benioff could not resist the opportunity to show off the massive revenues that Sales Cloud is generating. Saying that it is more revenues than Workday or any other cloud vendor.
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