Analyst Note| Dan Romanoff, CPA |
Wide-moat Salesforce reported solid fiscal fourth-quarter results, including upside to both revenue and non-GAAP EPS expectations. The company’s first-quarter revenue guidance was solid and we’re pleased to see the firm raise its full-year revenue target. We think Salesforce’s results are generally consistent with software peers who are experiencing robust demand arising from the need to accelerate the broad digital transformation efforts that were already underway. Deal sizes continue to grow larger as conversations are increasingly about digital transformation of a customer’s entire organization rather than just a specific area. Customers remain focused on the post-pandemic operating environment and want flexibility, which reinforces the rationale for the Slack acquisition.