Salesforce Subscription Revenue

Salesforce generated $34.86 billion in subscription revenue in 2024, compared to $29 billion in subscription revenue in 2023, $24.66 billion in 2022 and $19.97 in 2021. Related Visual Stories Who Owns Salesforce Marc Benioff, Co-CEO of Salesforce, is the primary individual shareholder, with nearly 3% of the company's stock. Other main individual shareholders comprise Parker Harris, Co-Founder, and Chief Technology Officer, and Bret Taylor, former co-CEO. Major institutional shareholders include The Vanguard Group, Fidelity, and BlackRock. Salesforce Business Model Salesforce follows a SaaS business model, offering four main categories of cloud CRM (Customer Relationship Management) services spanning the sales cloud to the marketing cloud. Where subscriptions drive the primary revenue model. However, the company leverages professional assistance to push the adoption of the software and retention of paying subscribers. Indeed, by 2024, Salesforce generated over $32 billion from subscriptions and $2.32 billion from professional services. Salesforce Revenue In 2024, Salesforce generated $32.54 billion from subscriptions and $2.32 billion in professional services, compared to $29 billion in subscriptions in 2023 and $2.33 billion in professional services. Salesforce Employees Salesforce had 72,682 employees by 2024, compared to 79,390 employees in 2023, 73,541 employees in 2022, and 56,606 employees in 2021. Salesforce Marketing Expenses By 2024, Salesforce spent 37% of its total revenues on marketing and sales expenses, compared to 43% of its total revenue in 2023, 45% in 2022, and 45% in 2021. Salesforce Cost Structure Professional services are run at negative gross margins. In short, by 2024, on $2.33 billion in revenue from professional services, Salesforce reported a $44 million gross loss. In short, Salesforce runs professional services at a loss to boost its subscription revenue over time since professional services are used to enhance the use and retention of the software. The subscription revenue cost structure is quite effective. By 2024, on over $32 billion in subscription revenue, the company reported $6.18 billion in cost of revenue (expenses related to delivering the service and providing support, including the costs of data center capacity), thus generating a $26.36 billion in gross profits, in 2024. Salesforce Revenue Per Employee Salesforce revenue per employee in 2024 was almost $479,582, compared to over $394,911 in 2023, $360,234 in 2022 and $375,437 in 2021. Salesforce Competitors Salesforce is a cloud-based customer relationship management (CRM) provider, allowing businesses to build meaningful and sustained relationships with their customers. With robust, customizable software that integrates with social media, Gmail, and Microsoft Outlook, the Salesforce CRM platform is rated highly among businesses of all shapes and sizes. Recent data has shown that the company has captured 19.5% of the global CRM market. Salesforce Mission Statement Salesforce's mission is to build bridges between companies and customers. Salesforce does that via a SaaS platform, which is enhanced via professional services offered on top of it. Salesforce Acquisitions Salesforce was founded in 1999 by Marc Benioff, Frank Dominguez, Dave Moellenhoff, and Parker Harris. In a relatively short time, the corporate powerhouse of enterprise software has made numerous acquisitions as part of its broader growth strategy to become a SaaS giant!

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Gennaro Cuofano

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