A Look At Salesforce’s Projected Growth
Building on its strong growth momentum over the last few years, Salesforce (NYSE:CRM) reported record revenue ($10.48 billion,+25% year-over-year) in 2017 and expects to grow by nearly 20% annually, over the next two years. With increased adoption of Salesforce’s product subscriptions over the years, and expectations of further growth due to AI enhancements, this suggests a strong growth outlook for the company.
We have created an interactive dashboard which shows our forecasts for the company’s revenues. You can modify the different revenue drivers to see how changes impact the company’s expected revenues.
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Salesforce’s Segment Revenue Growth
Salesforce generates revenue from two segments – Subscription and Support revenue, and Professional Services revenue. The company generated $9.7 billion in Subscription and Support revenue in 2017, and we expect it to grow at 20% annually. Increased cloud adoption over the past few years, with companies looking for scalable, cost-effective, and innovative solutions, coupled with Salesforce’s leading position in the CRM market, should further drive product uptake and revenue.
The company generated $770 million in revenue from Professional Services. With the company’s expanding reach in multiple verticals, and Success Cloud helping the Salesforce customers with digital transformation of their businesses, we expect 20% annual growth in revenue from this segment.