/Salesforces Marc Benioff on goal to double revenue — Slack changes everything – CNBC

Salesforces Marc Benioff on goal to double revenue — Slack changes everything – CNBC

Salesforce CEO Marc Benioff, after announcing that the software giant is acquiring Slack Technologies, told CNBC Tuesday that the company is on a path to double revenue.

In its fiscal third-quarter report released after the close, Salesforce provided guidance of $25.5 billion on the high end in fiscal 2022. Benioff, who founded Salesforce in 1999, said in an interview with Jim Cramer that the company is assembling the tools to reach even higher.

When Cramer asked if the Slack deal could help the company triple its quarterly revenue, Benioff said Slack is one part of the solution to Salesforce’s long-term goals.

“I have a $50 billion (revenue) dream, which is what I’m shooting for,” he said in a “Mad Money” appearance. “I feel very excited and motivated on everything that we need to do to double the company once again, and to make that happen we have to architect a complete solution” encompassing selling, marketing, service and integration.

Salesforce reported earnings of $1.15 per share on an adjusted basis, topping analyst estimates of 75 cents. The company posted $5.42 billion on the top line, exceeding the $5.25 that Wall Street was anticipating, growing sales by 20% from a year ago.

In its last five fiscal years, Salesforce has grown sales at a more than 24% annual clip. The company is on pace to achieve that growth rate after growing sales by 26% in the first three months of the 2021 fiscal year.

Salesforce said it was acquiring the messaging collaboration app Slack for $27.7 billion, its largest deal to date. It’s the latest in a string of big splash deals Salesforce made for software companies MulesSoft, which it purchased for $6.5 billion in 2018, and Tableau, which it picked up for $15.3 billion last year.

“Slack changes everything and makes Salesforce a whole new type of company,” Benioff said.

“Customers are rearchitecting how they are working,” he added. “Now with Slack, it provides this incredible credible window into a collaborative interface onto all of our services and the whole enterprise itself.”

Shares of Salesforce are up more than 48% year to date. Shares fell 1.81% to $241.35 in Tuesday’s session and are down more than 4% in after-hours trading.

Disclosure: Cramer’s charitable trust owns shares of Salesforce.

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