Salesforce hits another $1bn quarter in Europe
Salesforce has cemented its place in the group of tech vendors that are thriving in the post-pandemic market, with another strong set of quarterly numbers.
The company clocked its third consecutive quarter of $1bn+ revenue in Europe, as it reported a 29% in sales to $5.2bn in the three months ending July 31. Salesforce has been profitable for more than a year, and reported a net profit of $2.6bn, compared to just $91m in the year-ago quarter.
European sales were up 38% in constant currency for the quarter, and while the company’s core sales and marketing cloud propositions both performed well, the quarter also saw the launch of a number of new offerings designed to support changing customer needs. This included Work.com, a package of services covering contact tracing, emergency response management and shift management, as well as a partnership with Siemens on the 'touchless office' covering mobile employee boarding passes for building and elevator entry, and a safe occupancy management system.
Salesforce has been boosted by its recent run of M&A activity, and it is interesting to see how some of the acquired capability is playing a key role in some of its key wins. On a major new deal with telecoms giant AT&T, Salesforce is implementing its core Customer360 platform, as well as MuleSoft to connect different back-end systems and Tableau to enhance data visualization.
The vendor has also benefited from its recent switch to an industry-centric go-to-market, which is an area that PAC explored through a catch-up with the company’s UK utilities team. In this sector, the recruitment of BU leadership teams with deep domain expertise and the addition of sector-specific functionality through the Vlocity acquisition, has helped it to secure new business with clients including United Utilities.
Salesforce is taking further steps to help it connect the dots between its portfolio and the sector specific needs of its prospects. It is filling out its partner ecosystem to add more consulting and integrator partners with industry expertise, and last quarter, it established a new European customer advisory board, consisting of big-hitting CIOs from blue-chips including BMW, SNCF and Beiersdorf.
Salesforce has now increased its guidance for the full year, and expects overall revenue growth of between 21% to 22%. There is plenty of headroom for expansion in Europe, which still represents less than a quarter of global sales.