When Keith Block shifted to Salesforce from Oracle in 2013, the CRM titan was already a profitable SaaS vendor on a billion-greenback quarterly income cadence. When the co-CEO declared he was departing a day earlier, the company reported revenue of $4.9 billion for the quarter.
During his reign, the corporation’s revenue quadrupled, generating an impressive $17.1 billion in 2019, and, as Block declared at the earnings call, the corporation he was leaving was estimating revenue of $21 billion for FY2021.
In May 2017, the company hit the $10 billion mark. It’s perilously simple to get lost in these numbers, to take them for granted and assume they don’t imply as much as they do. It’s arduous work to build a billion-greenback SaaS business, never mind $10 billion or $20 billion.
Yet Salesforce is embarking on an unchartered territory for a SaaS firm. It’s looking at $20 billion in income for a single year.
The company keeps increasing revenue by making big transactions like acquiring MuleSoft for $6.5 billion two years sago or Tableau for $15.7 billion last year, or this week’s acquisition of Vlocity for a $1.33 billion. Meaning the corporate spent over $25 billion over a few years to purchase leading tech startups that may assist them in growing their business.
This is a SaaS vendor with various clients spending $20 million. Block helped orchestrate that growth and functioned with the board to assist in deciding which firms it must concentrate more on.