Long Salesforce (NYSE: CRM)

CRO Pressure on Marketing & Advertising Chief Revenue Officer putting heavy pressure on both marketing and sales to push services in an effort to support businesses at pre-pandemic levels Salesforce has already made quite a few changes to their services and internal structure in anticipation New Senior VP Arun Kumar Parameswaran Chief Executive Officer Marc Benioff has also been pushing to expand Salesforce beyond marketers and account representatives CFO Amy Weaver reported that they reported record levels of new business strength across all products, regions, and customer sizes Strong Customer Retention Locked in customers face challenges when switching to another CRM Time-consuming, high switching costs, other platforms are more expensive, etc Salesforce has a strong customer retention rate of 91%, mainly due to its strong network and challenges of switching to another CRM Businesses with salesforce.com have high granularity with their data thanks to thousands of tools and AI cloud services Dominant Market Share Salesforce dominates the CRM industry with a market share of 19.8% in 2021 Oracle, SAP, Adobe, and Microsoft have a combined market share of 17.8% In October 2020, Salesforce was named the #1 CRM provider for the seventh consecutive year by the International Data Corporation Images below are a brief company overview, a weighted valuation using a DCF (Bear, Bull, and Base Cases), a crop of the DCF, and a Sensitivity Analysis using a bearish target price and its respective WACC/Terminal Growth Rate. The main Catalysts are financials/financial forecasting, internal management restructuring, and Salesforce.com continuing to have a dominant market share with a growth oriented strategy.

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lucasraponi

Jun 16, 2021

7.56%

Change % Since Posting

242.07

Price When Posted

18.29

Change Since Posting

CRM

Salesforce.Com Inc

260.36

0.00
0.00%
Current Price

Long Salesforce (NYSE: CRM)

bullish

CRO Pressure on Marketing & Advertising

  • Chief Revenue Officer putting heavy pressure on both marketing and sales to push services in an effort to support businesses at pre-pandemic levels
    • Salesforce has already made quite a few changes to their services and internal structure in anticipation
      • New Senior VP Arun Kumar Parameswaran
  • Chief Executive Officer Marc Benioff has also been pushing to expand Salesforce beyond marketers and account representatives
    • CFO Amy Weaver reported that they reported record levels of new business strength across all products, regions, and customer sizes

Strong Customer Retention

  • Locked in customers face challenges when switching to another CRM
    • Time-consuming, high switching costs, other platforms are more expensive, etc
  • Salesforce has a strong customer retention rate of 91%, mainly due to its strong network and challenges of switching to another CRM
  • Businesses with salesforce.com have high granularity with their data thanks to thousands of tools and AI cloud services

Dominant Market Share

  • Salesforce dominates the CRM industry with a market share of 19.8% in 2021
    • Oracle, SAP, Adobe, and Microsoft have a combined market share of 17.8%
  • In October 2020, Salesforce was named the #1 CRM provider for the seventh consecutive year by the International Data Corporation

Images below are a brief company overview, a weighted valuation using a DCF (Bear, Bull, and Base Cases), a crop of the DCF, and a Sensitivity Analysis using a bearish target price and its respective WACC/Terminal Growth Rate.

The main Catalysts are financials/financial forecasting, internal management restructuring, and Salesforce.com continuing to have a dominant market share with a growth oriented strategy.

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read-time
1 min

277.23

Target Price

8/ 10

Confidence

6-12 Months

Timeframe
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Financials
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