Salesforce 2Q20 Earnings Impress Investors

Earnings Salesforce

Now that Salesforce’s earnings announcement has officially been released, Groove CEO Chris Rothstein provides his takeaways from the announcement and discusses the CEO Benioff’s performance during the coronavirus pandemic. Salesforce is powering a new generation of innovative companies and platforms, many of whom are taking the lead in transforming how businesses run in a post-COVID remote economy.

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Q2 2020 hedge fund letters, conferences and more

Chris runs one of the top tech companies in the Salesforce ecosystem (working with Google, Uber, and others), and the only sales engagement platform native to Salesforce – They’ve seen tremendous growth as a result of traditional businesses having to adapt to complete remote environments as a result of Covid-19 (which will impact their Q2 earnings and future outlook), and has some major insights into future Salesforce growth opportunities within the market. Groove is one of the biggest players utilizing Salesforce’s platform. It enables Google, Atlassian, BBVA, Uber, and Capital One to natively automate and intelligently engage with leads.

Quotes from Chris Rothstein, CEO of Groove:

Key Takeaways from Salesforce’s 2Q20 Earnings

“Salesforce continues to see growth across their entire business, from their Sales Cloud (their most traditional business) to their Service Cloud, and additional platform tools. What stood out about Salesforce’s earnings is that for the first time, Salesforce’s Service Cloud exceeded revenue of Sales Cloud. And their recent acquisitions of Tableau, ClickSoftware, and Vlocity demonstrate that they intend to continue expanding into every functional area of the Enterprise. The Vlocity acquisition also shows that Salesforce is looking to double down on its investment in Industry-specific versions of Salesforce and will expand that segment of its business in the coming year.”

On competing with Microsoft and Oracle:

“Salesforce recently surpassed Oracle’s market cap for the first time. The biggest advantage that Salesforce currently has over Oracle and Microsoft is the Salesforce AppExchange, which has quickly grown into a community where developers are building for Salesforce first. This is a huge advantage for them as companies favor solutions that are future-proof. With companies accelerating digital transformation as a result of COVID-19, it’s more important than ever that they align themselves with vendor solutions that are cloud-first. While Oracle is trying to move more of their offerings from on-premise into the cloud, that is where Salesforce started and continues to dominate.”  

On Marc Benioff’s performance as a CEO during COVID-19

“Marc is doing what he always does, which is to turn every situation into an opportunity. It has been impressive to watch Salesforce’s growth during the pandemic and the fact that they just increased their earnings outlook for a full year is a clear sign that he doesn’t intend to slow down any time soon.”

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