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Analysis of Salesforce.Com (#CRM) – an American company that develops and sells cloud solutions for corporations around the world.

Analysis of Salesforce.Com (#CRM) – an American company that develops and sells cloud solutions for corporations around the world.

26 January 2021

Salesforce.com is an American company that develops and sells cloud solutions for corporations around the world. The company is the developer of a CRM system of the same name, provided to customers exclusively on the SaaS (Software as a Service) model. Under the Force.com name, the company provides a PaaS system for self-service application development, and under the Database.com brand name, it provides a cloud-based database management system. The company is actively pursuing mergers and acquisitions. So, among the products acquired as a result of such transactions are the Heroku platform service, the MuleESB service bus, the Tableau replicated data visualization system, and the Slack corporate messenger.

Salesforce’s main competitors are mainly large American cloud providers such as Oracle, ServiceNow, IBM and Microsoft.

Q4 Revenue: $ 11.4B (+ 4.6% YoY)

Q4 Operating Income: $ 1.0B (+ 66% YoY)

TTM Q4 Net Profit: $ 695M (+ 87% YoY)

Earnings per share last quarter: $ 1.90, above $ 1.5 forecast

Thanks to the introduction of global quarantine and remote work, the company has significantly strengthened its position in the market and significantly increased its capitalization.

Distribution of revenue by business segment:

Sales Cloud – 30.42%

Service Cloud – 27.26%

Salesforce Platform and Other – 21.49%

Marketing and Commerce Cloud – 14.29%

Professional services and other – 6.54%

EPS forecast for the current quarter: $ 0.75

Since 2009, the CRM company has had a moderately growing trend, which sometimes overtakes the index, sometimes not. In 2020, the company really managed to significantly raise its capitalization. Growth from minimum values ​​to maximum was more than 250%. Now the company still looks strong. Judging by the technique, level 200 can become a quite good entry, and already having pushed off from it, the company can go to storm its maximums of 280 and higher.

In recent years, the market for cloud solutions for corporations has grown rapidly. Therefore, it is safe to say that although the company does not pay dividends, it is a growth company. The potential value of Salesforce can grow for a long time, along with the development of cloud solutions.

Thus, #CRM is a promising company operating in a new and potentially profitable sector of the global economy. However, do not forget that the company also has serious competitors in the face of Microsoft, Amazon and Oracle.

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