Salesforce’s co-CEO experiment is over after 18 months. The company announced today that co-CEO Keith Block has stepped down but will remain an advisor to CEO and chair Marc Benioff, who is now the sole chief executive.
The announcement was released alongside the CRM giant’s full-year financial results, which also included a $1 billion acquisition and 30 per cent revenue growth.
Salesforce will pay $1.33 billion in cash to acquire cloud and mobile software company Vlocity, which builds industry-specific software natively in the Salesforce platform.
The transaction is set to close during the fiscal second quarter and contribute approximately $50 million in revenue during fiscal 2021.
The acquisition was small by Salesforce’s standards and it might be the last one for a while, following its massive $15.7 billion Tableau acquisition.
“We so strongly believe that we actually do need an acquisition pause after Tableau. It was, by far, the biggest deal we’ve ever done, significant and far more exciting than we could have ever imagined. The partnership has been incredible,” Benioff said during a call with analysts.
Total FY20 revenue was $17.1 billion, up 29 per cent year-over-year. Salesforce is forecasting revenue will increase to $21.1 billion revenue in FY21 and, looking further ahead, the company says its on track to deliver $34 billion to $35 billion in revenue in fiscal 2024.
2021 $21.1B (guidance)
2020 $17.1B 2019 $13.2B 2018 $10.5B 2017 $8.4B 2016 $6.7B 2015 $5.4B 2014 $4.1B
Thank you Ohana! ❤️
— Marc Benioff (@Benioff) February 25, 2020
Aside from its financial results, Benioff the earnings call to highlight the company’s efforts in stakeholder capitalism.
“Salesforce is living proof that stakeholder capitalism works when we value all stakeholders,” the chief executive said.
“Yes, we’ve delivered phenomenal returns for our shareholders more than 4,000 per cent since we went public in 2004. But we’ve also delivered fantastic returns for our stakeholders. $330 million in grants to worthy causes. Our employees have delivered 4.9 million hours of volunteerism, 46,000 nonprofits and NGOs use our software for free.
“We have achieved net zero gas emissions globally. We’ve delivered a carbon neutral cloud to our customers and we’re committing to reach 100 per cent renewable energy for global operations by 2022 — because the planet is a stakeholder.”
Keith Block Steps Down as Salesforce Co-CEO
In a statement issued to media, Block said he is grateful for the opportunities he had at Salesforce over the seven years and what the team he led achieved. Block added he looks forward to his next chapter while remaining close to the company as an advisor.
“It’s been my greatest honour to lead the team with Marc that has more than quadrupled Salesforce from US$4 billion of revenue when I joined in 2013 to over US$17 billion last year,” Block said.
“We are now a global enterprise company, focused on industries, and have an ecosystem that is the envy of the industry, and I’m so grateful to our employees, customers, and partners. Being side-by-side with Marc has been amazing and I’m forever grateful for our friendship and proud of the trajectory the company is on.”
Salesforce also announced that it has named Gavin Patterson, former BT Group plc chief executive, its president and chief executive of Salesforce International.
Patterson, who last September became the company’s chair of Europe, the Middle East and Africa (EMEA), now oversees Salesforce’s largest international markets outside of the U.S. He will be headquartered in London.
Commenting on Patterson’s appointment Salesforce chief executive Marc Benioff said the company is thrilled that Gavin has chosen to lead Salesforce International.
“Gavin’s global leadership will help us continue to deliver customer success in these important markets. I could not be more excited to have Gavin in our Ohana,” Benioff said.