24 Apr

How Salesforce’s Subscription Segment Has Been Performing

WRITTEN BY Anne Shields

Subscription segment’s double-digit growth continues

Previously in this series, we discussed Salesforce’s (CRM) initiatives to grow in the cloud space, as well as competition posed by Adobe’s (ADBE) and Microsoft’s (MSFT) collaboration. Salesforce generates the majority of its revenue from the subscription and support segment, which saw revenue of $2.1 billion in 4Q17. Let’s take a look at the offerings that contributed the most towards subscription and support’s 25% YoY (year-over-year) revenue growth.

How Salesforce’s Subscription Segment Has Been Performing

Marketing Cloud grew the most

Sales Cloud, the top contributor in the segment, earned 38% of Salesforce’s subscription and support revenue in fiscal 4Q17. Sales Cloud enables companies to store data, monitor progress, and gain insights on and predict sales opportunities. The product grew by 14% to $804.9 million.

Service Cloud helps companies deliver customized customer service and support. It grew by 24% to $615.3 million. Salesforce Platform allows companies and developers to create apps. It grew by 33% to $391.7 million.

Salesforce’s Marketing Cloud grew 62% to $298.8 million in fiscal 4Q17. Among Salesforce’s cloud offerings, Marketing Cloud grew the most in fiscal 4Q17. Demandware contributed approximately $63 million in fiscal 4Q17. Although Adobe (ADBE) leads the marketing cloud space, competition has increased. Oracle (ORCL) and IBM (IBM) are also active in this space.

Latest articles

CrowdStrike (CRWD) fell 9.5% today to close at $54.52. Analyst Walter Pritchard initiated coverage on CRWD with a “sell” rating and a target price of $43.

Micron (MU) stock was up 4.21% on Friday and closed at $45.10. MU was trading 12.2% below its 52-week high of $51.39 for a market cap of $49.9 billion.

Top utility stocks trended lower and lost 1.3% last week. Broader markets were positive but cautious on trade talk optimism, gaining 0.7% last week.

Analyst Ming-Chi Kuo expects Apple to launch the iPhone SE2 in Q1 2020. Priced at $399, it could help Apple gain traction in India and Southeast Asia.

Disney-owned Hulu plans to introduce video downloads, which Netflix has offered for three years. Disney hopes to narrow Netflix’s competitive advantage.

Ireland’s privacy watchdog has concluded its investigation into Facebook over its compliance with the European Union’s data protection law.