Salesforce (CRM) continues to dominate the Customer Relationship Management, or CRM, space, with its cloud-based tools and applications being a staple among most Fortune 500 companies, observes Todd Shaver, growth stock specialist and editor of Bull Market Report.
With organizations across the world increasingly adopting a digital-first approach, the company’s Customer 360 solution provides an integrated approach to customer experience management making it the most preferred solution, ranked #1 by IDC for 8 years in a row.
The company recently posted record fourth quarter earnings results: $7.3 billion in revenues, up 26% YoY, compared to $5.8 billion during the year ago period. The company posted a profit of $840 million, or $0.84 per share, compared to $975 million, or $1.04. They also issued upbeat guidance for 1Q and the full year.
For the full year, revenues stood at $26.5 billion, up 25% YoY, compared to $22.3 billion a year ago, with profits at $4.7 billion, or $4.78 per share, compared to a profit of $4.6 billion, or $4.92 per share during the same period last year.
Current remaining performance obligations (cRPOs) stood at $22 billion to be realized over the next 12 months, up 25% YoY, and remaining performance obligations (RPOs) at $44 billion across its suite of products and services, up 22% YoY.
The company had similar performances across its key segments and subsidiaries, starting with Sales Cloud revenues at $1.6 billion, up 17% YoY, Service Cloud at $1.7 billion, up 18% YoY, followed by platform revenues, which includes Slack, at $1.4 billion, an increase of 53% YoY.
The marketing and commerce cloud, and the data segment, which comprises Tableau and Mulesoft, posted $1.0 billion, and $1.1 billion in revenues, respectively.
Like most enterprise software stocks, the company’s stock has witnessed a steep fall in recent months, however, unlike other players in this niche, Salesforce continues to post profitable growth at scale. With $10.5 billion in cash, $14.0 billion in debt, and $5.3 billion in free cash flows for the year, it remains in a league of its own.
The CEO, Marc Benioff, is a powerful, incredibly intelligent leader, and has consistently performed to his exact prognostications. The latest sales goal is $32 billion in 2022. We would not bet against this man nor this amazing company. We maintain our Price Target at $305, with a Sell Price at $165.
