Salesforce Q4 Earnings Analysis or...
Or...If you don't digitize you are not going to grow.
Digital Transformation was the star of the show for the earnings call being the focus across all industries and geographies. This was mentioned 11 times during the call and highlighted that the conversation has moved from IT to CEO priority. Proving successful for CRM's growth. Let's look at the main facts:
- Core Sales and Service Clouds are both 6B business growing ~18%Y/Y
- Large deals are increasing in quantity: 2X the number of 8 figure deals & Million dollar deals up 34%
- Slack integration off to a good start (9% over guidance) but still work to do. Proof (#4)
- Large M&A not a near term focus.
- Lowest customer attrition in company history.
Sounds like the plan to use Slack to go company wide in their customers has legs. Looking to see more integration and fullfillment of the Slack as the front end to Customer 360. Sales Cloud and Service Cloud become the backend (or middleware) and Slack is the UI. More platform based tools to unify customer data and enable business to increase their velocity will be created and incrementally launched. GTM is different for Slack vs. Salesforce. Slack is a product led company vs Salesforce which is Sales led. As the two converge it will create a unique differentiator for the business.
Small business and self service pipelines were called out as being strong which could be seen as a market indicator of overall health.
Traction on Demand acquisition. Global pure play Salesforce practice and long time partner joins the force. Who will be next to continue the growth.