On the 25th of August 2020, the leading provider of cloud-based e-commerce, CRM, and other popular business software solutions, Salesforce revealed that their revenue from Marketing and Commerce Cloud software increased by 21% for the second quarter of the fiscal that ended on July 31.
Salesforce provides popular B2B and retail eCommerce software solutions and the subscription and support services revenue for the company grew by 1% over the year in the second quarter of the fiscal to $746 million, and by 24% to $1.36 billion in the first half of the fiscal.
Gavin Patterson the Chief Revenue Officer of Salesforce.com Inc. reported, “Companies realized they couldn’t put off major technology upgrades.”
The executive stated that sales of Commerce Cloud are benefitting from the “broad digitization” of commerce along both B2B and B2C channels. This is driving substantial increases in the gross merchandise value of the products and services being sold by the companies online.
According to a transcript from Seeking Alpha, Bret Taylor, president and chief operating officer of Salesforce said, “We saw over 100% year-over-year GMV growth this past quarter, and I think it really reflects the broad digitization of commerce.”
He further added, “And, I think when I looked at our Commerce Cloud and our differentiated value proposition, it’s two things. One is we do both B2C Commerce and B2B Commerce. And I think that when I talk to customers, it’s really about all of their channels.”
He explained that Commerce Cloud is a part of a broad solution that Salesforce is providing to their customers to truly digitize their commerce experiences. He also talked about the importance of providing seamless customer experiences which is more important than ever before in this all-digital, work-from-anywhere world.
The total Q2 revenue increased by 29℅ to $5.15 billion. On average analysts projected revenue growth of $4.9 billion. Profit before certain items was $1.44 a share; excluding an additional 58-cent gain from investments that would make the number 86 cents a share. Analysts had predicted 67 cents. Shares had jumped to be more than 13% in late trading.
In another statement on Tuesday Salesforce revealed that sales will be worth $5.25 billion in the third quarter.
According to data by Bloomberg, analysts on average estimated the sales amount to be worth $5 billion in the third quarter.
Salesforce has also boosted its revenue predictions for the entire fiscal to be as high as $20.8 billion.
Salesforce is all set to soon be a part of the Dow Jones Industrial Average, highlighting its evolution from a cloud – software forerunner over the past 21 years. Marc Benioff, Chief Executive Officer has kept the momentum going in part through acquisitions that have given the company a broader portfolio of software.
The declaration on 25th August marked a rebound from May when Salesforce trimmed its annual forecast because some corporate customers paused new spending. Benioff said that to thrive during the COVID-19 outbreak, the company has to get closer to customers and “reimagine its relevance.” The products by work.com and Salesforce Anywhere were meant to help clients safely reopen offices and work remotely, respectively.
Of late, governmental agencies and schools are using Work.com for coronavirus contact tracing and to manage employee shifts.
Some of the customers of Salesforce such as Sonos Inc. (a manufacturer of speakers) have used Salesforce applications to bolster their direct-to-customer e-commerce revenue during the pandemic.
In fact, Under Armour Inc adopted the latest Commerce Cloud technology by Salesforce.
After closing at $216.05 in New York, Salesforce shares soared as high as $247.80 in extended trading.
In the second quarter, the revenue from Sales Cloud, the company’s flagship product increased by 13% to $1.28 billion. The company leads the market for sales-tracking software solutions; however, the growth rates have slowed with time.
Recently the sales of Service Cloud increased by 20% to be worth dollar 1.3 billion. This tool helps companies communicate with the field employees as well as customers.
Salesforce is a company headquartered in San Francisco and is the #1 CRM solution provider bringing companies and customers together. The company specializes in Enterprise Cloud Computing, and Customer Relationship Management and is a platform used for sharing news, events, and innovation to stimulate changes in the world.