Accounting Project
alapati
SalesforceFinancialAnalysis.pptxSalesforce Financial Analysis Accounting for Leaders
Objectives
Introduction
Salesforce Products
Salesforce Net Income & Revenue
Salesforce Financial Analysis
Swot Analysis
Latest Financial Performance
Salesforce
Salesforce.com, Inc. is an American cloud-based software company headquartered in San Francisco, California.
Salesforce Products: Cloud Computing for Sales, Service, Analytics, health, Heroku, Artificial Intelligence, App exchange products.
Salesforce provides customer-relationship management (CRM) service and also sells a complementary suite of enterprise applications focused on customer service, marketing automation, analytics, and application development.
Salesforce Products
Salesforce Sales Cloud
Salesforce Service Cloud
Salesforce Marketing Cloud
Salesforce Community Cloud
Salesforce Platform
Salesforce Einstein
Salesforce Commerce Cloud
Salesforce Integration Cloud
Salesforce Revenue FY20
FY20 Revenue of $17.1 Billion, up 29% Year-Over-Year, 29% in Constant Currency
Fourth Quarter Operating Cash Flow of $1.63 Billion, up 23% Year-Over-Year
Current Remaining Performance Obligation of Approximately $15.0 Billion, up 26% Year-Over-Year, 27% in Constant Currency
Remaining Performance Obligation of Approximately $30.8 Billion, up 20% Year-Over-Year
Raises Q1 FY21 Revenue Guidance to $4.875 Billion to $4.885 Billion, up Approximately 30% to 31% Year-Over-Year
Revenue bY Quarter
Salesforce Annual Balance Sheet
Salesforce Annual Balance Sheet
Salesforce Annual Balance Sheet
Salesforce Annual Income Statement
Salesforce Revenue Comparison by Year
Salesforce, Inc revenue for the quarter ending January 31, 2020 was $4.851B, a 34.64% increase year-over-year.
Salesforce, Inc revenue for the twelve months ending January 31, 2020 was $17.098B, a 28.73% increase year-over-year.
Salesforce, Inc annual revenue for 2020 was $17.098B, a 28.73% increase from 2019.
Salesforce, Inc annual revenue for 2019 was $13.282B, a 26.02% increase from 2018.
Salesforce, Inc annual revenue for 2018 was $10.54B, a 24.93% increase from 2017.
SWOT Analysis
Strengths of Salesforce
Strong Free Cash Flow – Salesforce has strong free cash flows that provide resources in the hand of the company to expand into new projects.
Reliable suppliers – It has a strong base of reliable supplier of raw material thus enabling the company to overcome any supply chain bottlenecks.
Successful track record of developing new products – product innovation.
Highly successful at Go To Market strategies for its products.
Weakness of Salesforce
The marketing of the products left a lot to be desired.
The profitability ratio and Net Contribution % of Salesforce are below the industry average.
Limited success outside core business. Even though Salesforce is one of the leading organizations in its industry it has faced challenges in moving to other product segments with its present culture.
SWOT Analysis
Opportunities for Salesforce
The market development will lead to dilution of competitor’s advantage and enable Salesforce to increase its competitiveness.
Lower inflation rate – The low inflation rate bring more stability in the market, enable credit at lower interest rate to the customers of Salesforce.
Opening of new markets because of government agreement.
The new technology provides an opportunity to Salesforce to practices differentiated pricing strategy in the new market.
Threats Salesforce Facing
Liability laws in different countries are different and Salesforce may be exposed to various liability claims given change in policies in those markets.
Intense competition – Stable profitability has increased the number of players in the industry over last two years which has put downward pressure on not only profitability but also on overall sales.
Imitation of the counterfeit and low-quality product is also a threat to Salesforce’s product especially in the emerging markets and low-income markets.
References
https://investor.salesforce.com/financials/default.aspx
https://s23.q4cdn.com/574569502/files/doc_financials/2019/Salesforce-FY-2019-Annual-Report.pdf
