At a time when the global enterprise tech market is going through a tough phase, salesforce.com, inc. (NYSE:CRM) has reported strong quarterly results.
Companies like Tableau and Linked In hit their worst figures in the stock market, along with many other tech firms after reporting below-expected financial results in the December quarter. But Salesforce’s astonishing financial results have come as a surprise to all those analysts who declared a worldwide downturn in enterprise tech market.
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The global downfall of tech stocks resulted into Nasdaq marketplace touching its lowest levels in last 15 months. Many companies blamed the weak macro environment for this plunge, fearing this could spread to all the major markets if the situation isn’t controlled now. However, the result announcement made by Salesforce, having $45 billion market capital, has ended such arguments that there’s a global downturn in the enterprise tech market.
While talking to reporters, company’s CFO, Mark Hawkins, said that he read reports regarding a downturn in technology market; however, Salesforce doesn’t find any difficult economic environment whatsoever. His statement is backed by company’s strong quarterly results that outperformed Wall Street estimates. During the December quarter when most of the enterprise tech companies struggled to do any business, Salesforce successfully signed two $100 million deals. In addition to these two deals, it also reported signing of more than 600 deals across Asia and Europe.
In Salesforce CEO Marc Benioff’s opinion, this is the best quarter that Salesforce has had lately. Company’s revenues in APAC and Europe grew 26% and 32% YOY on constant currency basis. Talking about company’s extraordinary performance, many experts claimed that the broad portfolio, rich history and excellent CRM system of Salesforce supported it to achieve such great results in December quarter.
Going forward, Salesforce will continue to make necessary changes in its management and operational approach to living up to customers expectations. Details of these improvements will be announced at a later date.