2019 Vault Rankings
About Salesforce.com, Inc.
Salesforce.com Inc. is the top developer and seller of customer relationship management software with more than 150,000 users. The company offers cloud-based applications that manage customer relationships including Sales Cloud, Marketing and Commerce Cloud, and Service Cloud (for customer support) as well as the Salesforce Platform. Other products offer e-Commerce, analytics, and social media tools through cloud-based applications. Salesforce's customers come from a variety of industries, including financial services, telecommunications, manufacturing, entertainment, and government. It generates most of its revenue in Americas. Salesforce bought Tableau for about $15 billion in mid-2019.
Besides its big three cloud products – Sales Cloud, Service Cloud, and Marketing and Commerce Cloud, Salesforce offers several others that help companies manage their relationships with customers. They include: Community Cloud, which helps companies create and manage branded digital destinations for customers, partners, and employees; IoT (Internet of Things) Cloud, which helps companies collect information from connected devices, products, sensors, and apps; Analytics Cloud, which helps an employee explore business data from any device; and Salesforce Quip, a productivity tool designed for teams.
Salesforce also offers consulting services for deployment, training, and design and integration.
Most of the company's revenue comes from its subscription and support segment, which accounts for nearly 95%, while the rest comes from professional and other services.
Salesforce relies on customers in the US for more than 70% of its revenue, while customers in Europe account for about 20% of revenue and those in the Asia/Pacific region generate almost 10%. Salesforce is headquartered in San Francisco, California.
Sales and Marketing
Salesforce.com counts more than 150,000 users, from small businesses with one subscription to large enterprises with thousands. With such a large customer base.
The company uses a direct sales force made up of telephone sales reps based in regional hubs and field sales reps in territories close to their customers. It also works with consulting firms, systems integrators, and others to find customers. For successful sales, Salesforce pays a fee based on the first-year subscription revenue generated by the referred customers.
Salesforce's marketing and sales expenses were $7.9 billion, $6.1 billion, and $4.7 billion for the years 2020, 2019 and 2018 respectively.
Salesforce has turned in a fast-growing revenue line for the past five years, averaging almost 30% annual increase as the company has added more applications to its basic customer relationship management offerings.
In 2020 (ended January), revenue hit about $17.1 billion, up some $3.8 billion and a 29% increase from 2019. The growth was driven by higher revenues from Salesforce.org and Tableau.
Salesforce's net income dipped to $126 million in 2020 from $1.1 billion in 2019 due to higher operating expenses incurred during the period.
Salesforce has cash and equivalents of $4.1 billion in 2020 compared to $2.7 billion in 2019. The company's operations generated $4.3 billion, while investing activities used $3 billion. Financing activities provided another $164 million.
Salesforce orient its business strategy and invest for future growth by focusing on the following key priorities:
Expanding relationships with existing customers by aiming to upgrade the customer experience with new products, premium editions and additional subscriptions by targeting new functional areas and business units, and expanding all editions of its service offerings with new features, functions and increased security through its own development, acquisitions and partnerships;
International expansion by continuing to increase investment in its international go-to-market resources, operations and infrastructure to deliver the highest quality service to its customers around the world;
Extending go-to-market capabilities by pursuing businesses of all sizes in major regions globally, primarily through its direct sales force and have steadily increased and plan to continue to increase the number of direct sales professionals it employs. The company will also continue to develop indirect distribution channels for its solutions around the globe and new go-to-market strategies such as self-service for Essentials;
Targeting vertical industries by providing solutions specifically built for customers in certain industries, such as financial services, healthcare and life sciences, government, manufacturing, consumer goods and philanthropy. These solutions help to expand its potential customer base and help to attract new customers;
Expanding into new categories by delivering innovative solutions in new categories, including analytics, e-commerce, Internet of Things ("IoT") and integration, and expect to continue this type of category expansion in the future;
Expanding and strengthening our partner ecosystem by continuing to work with and invest in its partner ecosystem, including these ISVs and system integrators ("SIs"), to accelerate our reach into new markets and industries, offer a variety of solutions natively and through the AppExchange, and address the business requirements of both current and future customers;
And promoting strong customer adoption and reducing customer attrition by strive to reduce attrition and secure renewals of existing customer subscriptions prior to the end of their contractual terms.
Mergers and Acquisitions
In early 2020, Salesforce acquired Vlocity for $1.3 billion. Vlocity is a leading provider of industry-specific cloud and mobile software based in San Francisco, California. The acquisition enhances and complements Salesforce's industry capabilities built on its platform.
In addition to the company's early 2020 transaction, Salesforce acquired Evergage, based in Massachusetts. Evergage's real-time personalization and customer data platform enables the company to transform 1-to-1 engagement across channels. The transaction accelerates Salesforce efforts to offer enhanced personalization solutions to its customers.
In late 2019 Salesforce, in its biggest deal, acquired Tableau Software, which develops applications for analyzing and presenting data based in Washington, for $15.7 billion. With Tableau's products in its software arsenal, Salesforce offers customers a more comprehensive package for data collection and analysis.
In another 2019 deal, Salesforce acquired ClickSoftware, a developer of field service management software based in Massachusetts, for $1.35 billion in cash and shares, to speed growth of its cloud-based products for customer service operations. ClickSoftware's offerings would become part of Salesforce's Service Cloud.
In early 2019, Salesforce acquired privately held Bonobo AI, which develops artificial intelligence software to gather insight on customers by analyzing phone calls, texts, and chats, based in Israel for $45 million. Salesforce is to add the Bonobo software to its Salesforce Sales Cloud.
415 Mission St FL 3
San Francisco, CA 94105-2504
Phone: 1 (415) 901-7000
Employer Type: Publicly Owned
Stock Symbol: CRM
Stock Exchange: , NYSE
Chairman and CEO: Marc Benioff
Vice Chairman, President, and COO: Keith G. Block
President and Chief Strategy Officer: Alexandre Dayon
Employees (This Location): 600
Employees (All Locations): 49,000
San Francisco, CA
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