The tech and business press has recently painted a gloomy economic picture with a tendency to accentuate the negatives. There are supply chain problems.
It doesn't seem to be affecting salesforce.com, which just had itself a good quarter along with a bright revenue and profit forecast
The company reported revenue was up for the quarter. The analysts expected $7.38 billion. The company expects revenue to grow by 20% in its current business year and 21% in its current quarter.
On the call with analysts earlier this week, the chairman and CEO of the company was almost happy. In the Q1 numbers, you can see that our business is incredibly healthy. He said that he knew all of the people were doing that.
But then he said something that caught my attention. You might be having a down quarter, but the economy isn't affecting you. We haven't seen any material impact from the broader economic world that all of you are in.
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The resilience of the business model is attributed to that. "Our demand environment where demand is very strong, and if you look over the last 23 years, we have proven to be incredibly resilient based on this incredible business model." We have an incredible technology model that we have, where we have been through all kinds of dot-com crashes and recessions and financial crises and global pandemics, and we continue to weather these storms through the power and strength of our community.
After the dot-com crash, he learned a valuable lesson from the company's early troubles, and worked to build a more resilient business model.
The economic crisis of 2001 really affected us. When we were on monthly contracts, we didn't have the right cash flow structure, investors wouldn't give us any money, and so we made a lot of changes, and it strengthened our business and made us more durable over time.
When the company was founded in 1999, most investors didn't see the value of delivering enterprise software as cloud service, something that is completely mainstream today.
I had to go down to Silicon Valley to raise money, like I was a high tech beggar, and many of them are my friends.
He is no longer homeless. While the economy may be entering an unstable period, he is not scared because his company is close to a $30 billion run rate. He doesn't worry. You might be in a bad place economically, but that's not the case withSalesforce. Ask the co- founder and co- CEO.
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