Salesforce cracks A$1 billion revenue in A/NZ

Salesforce has cracked over A$1.02 billion in revenue in Australia and New Zealand (A/NZ) while profit more than tripled from A$5.21 million to A$20.11 million for the financial year ending 31 January 2022. 

Revenue increased from A$760 million in the previous financial year while profit before tax more than doubled from A$13.78 million to A$34.8 million for the financial year. 

The financial report covered Salesforce Australia, New Zealand and Slack Australia. 

Sales in New Zealand increased by around a third, from NZ$33.2 million to NZ$44.1 million. After tax profit grew from NZ$2.3 million to NZ$3.6 million.

In the first quarter of 2022, Salesforce globally saw revenue rise 24 per cent year-over-year to US$7.41 billion, marking a strong start the financial year for the software-as-a-service giant. However, net income fell 94 per cent from US$469 million to US$28 million for the quarter.

Revenue for Sales Cloud was US$1.63 billion during the quarter; Service Cloud was US$1.76 billion; Marketing and Commerce Cloud US$1.1 billion; Data Cloud — which includes Tableau and Mulesoft — was US$955 million; and Platform — which now includes messaging service Slack — was US$1.42 billion, including a US$344 million contribution from Slack alone.

Salesforce continues to benefit financially from its US$27.7 billion acquisition of Slack in 2020. This is a trend that looks set to continue, as organisations across the globe continue to have conversations about facilitating hybrid and remote work models.

“Every single one of our customers is deciding how do they succeed in this new era of flexible work, because every single, particularly office worker, isn’t coming back to the office five days a week,” co-CEO Bret Taylor told analysts after the results were announced.

Salesforce also cut its full year revenue guidance to US$31.7 billion, from US$31.8 billion, due to foreign exchange volatility.

At the time, Salesforce CFO Amy Weaver said it will continue to hire but that it will do so at “a much more measured pace and we’re focusing the majority of our new hires on roles that will support customer success and the execution of our top priorities.”

“This focus on discipline is being applied across our entire organisation,” Weaver added.

That discipline will continue to extend to large mergers and acquisitions also, as Taylor said in March that Salesforce doesn’t have “plans for any material MA in the near term”. However it did make a smaller acquisition in May of Troops.ai.