Salesforce’s Recent Acquisitions And Steady Streams Of Cash Flow Commands Further Premium
Salesforce Key Highlights
- Salesforce guided dim (FY21 Sales of USD20bn, 6% down from earlier company projections) for the rest of the year after Q1’21 results; maintains sales growth momentum.
- Wide product offering and increasing adoption of platform services to drive future business growth as digital transformation becomes imperative.
- The acquisitive growth strategy will be the way forward, although only after streamlining the recent acquisitions on its plate.
- Revenue visibility is moderate for FY21; profitability will remain a key challenge over the medium term. However, liquidity is ample to sustain the business even if the pandemic lingers.
- Salesforce valuation at 39x price/FCF FY21 commands a premium over its peers.
- Operating profitability continues to disappoint even as topline grows
