Salesforce.com has raised its full-year fiscal guidance and is preparing to continue growing faster than any “enterprise software company at this level,” co-CEO Marc Benioff told CNBC Monday.
The stock fell more than 3 percent during the day’s session and took another dip after delivering its latest quarterly earnings following the bell, but the co-founder sounded upbeat about its $16 billion revenue forecast this year.
“That far exceeds my expectation. I still have never been more excited about Salesforce than I am right now,” Benioff said in an interview on “Mad Money with Jim Cramer.” “When I look at the short term, I see $20 billion right around the corner. I see $30 billion right around the corner. In fact, we initiated a 4-year guidance today, Jim, of $26 to $28 billion.”
Salesforce gave lower-than-expected guidance for fiscal first quarter, but the full-year outlook is in line with Wall Street predictions. The share price lost about $6 before Monday’s close and shed more than $4 in extended trading, but Cramer pointed out that this could be a good buying opportunity.
The stock is up more than 15 percent this year and 30 percent over the past year. Benioff is confident that deals with names like Amgen and Barclays will help expand that growth. The deal with Barclays, which was led by co-CEO Keith Block, is the largest in the nearly 20-year history of Salesforce, he added.
“It was a deep nine-digit transaction to help automate their 50 million customers,” he said. “It really goes to show how the three major trends that are playing out computing today —the cloud, broad digital transformation and a focus on the customer — can really impact our company by creating a huge deal and also being able to support a huge transformation at Barclays.”
Disclosure: Cramer’s charitable trust owns shares of Salesforce.
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