The latest performance and outlook indicate the previous quarter was merely “a speed bump” on the company’s journey to achieving revenue of $10 billion by FY 2018, BTIG’s Joel Fishbein said in a report. He maintained a Buy rating on Salesforce, with a price target of $100.
The company recorded billings growth of 19 percent year-over-year, significantly ahead of the consensus estimate of 13 percent. Deal metrics were strong, and a record number of high value [seven-figure] transactions were reported.
“The company adeptly changed its selling motion in the U.S. over the past quarter to align with a market shift, and the bounce-back in their home market coincided nicely with positive results across all geographies,” Fishbein commented.
From $10 Billion To $20 Billion
Salesforce is approaching its target of $10 billion in revenue by FY 2017 and management believes the company can reach $20 billion in the next three to four years, implying a 20-25 percent CAGR. Although this translates to some deceleration in growth relative to prior years, but it’s “still impressive,” Fishbein mentioned.
“Overall, we see the innovation pipeline and
|Nov 2016||OTR Global||Upgrades||Mixed||Positive|
|Oct 2016||Rosenblatt||Initiates Coverage On||Buy|
|Oct 2016||DA Davidson||Maintains||Neutral|
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