The American cloud based software company Salesforce released very impressive figures for the year ended Jan 31st, 2020. The actual performance of the company remained in the backdrop as much of the limelight was stolen by the aggressive acquisition of other companies.
Salesforce acquisition drive was based on a multi dimensional approach in which the company both expanded and consolidated its portfolio of cloud delivered services, mainly geared towards large enterprises. The revenue growth for fourth quarter was reported at 35%, beating the forecast of a 32% growth.
The software giant is well poised to surpass the $20 BN revenue mark by the year 2021, which would be a first in its history. Few skeptics attribute this strong performance solely to aggressive acquisitions, which is not entirely true. For this, we will have to delve deeper into the company’s bottom line growth.
A company’s bottom line growth, which is a globally recognized financial metric of how efficient a company is in terms of operations, also grew by 5.6% in fiscal 2020. The most notable acquisition by Salesforce was by far that of data visualization company Tableau for a whopping $15.7 BN.
MuleSoft, a company that provides integration software for connecting devices, applications and data was acquired back in 2018 for $6.5 BN. Second last on the list of Salesforce acquisitions is mobile workforce management platform ClickSoftware, which was acquired by dishing out $1.4 BN.
The last company so far on the acquisition plate of Salesforce is Vlocity, which provides industry specific software solutions. Despite being built on the Salesforce platform itself, the company is likely to be scooped up for $1.3 BN. Given the future growth prospects with these acquisitions, things are looking good for the company.