Reuters/Mike Blake
Marc Benioff, chairman and CEO of Salesforce
- Nearly a year after $4, $4 sees $4 as a major source of subscription growth.
- Mulesoft contributed $181 million in revenue, including $156 million in subscription and support revenue in the past quarter.
- Last quarter, Salesforce predicted that MuleSoft would generate $375 million in revenue for the entire fiscal year, but this quarter it reported that MuleSoft ended up generating $431 million.
Salesforce's$4 for the current quarter left some investors disappointed. But there was one part of the company that everyone was gushing about: MuleSoft.
What a difference a year makes.
Salesforce$4 about a year ago for a whopping $6.5 billion, the largest deal in the company's history. The big-ticket deal $4 at the time, especially since MuleSoft didn't fit neatly into Salesforce's customer relationship management business. Salesforce's stock sank about 5% in the immediate aftermath of the deal.
On Tuesday, UBS analyst Jennifer Swanson Lowe called MuleSoft a "standout" in Salesforce's final quarter of the year.
$4 generated $181 million in total revenue, including $156 million in subscription and support revenue, during Salesforce's fiscal fourth quarter.
"This came in far ahead of our initial guidance as we quickly executed on our plans to integrate $4 and accelerate digital transformation projects for customers around the world," $4 CFO Mark Hawkins said on the earnings call.
Hawkins said that this quarter was $4's "largest quarter of the year," but its products are more seasonal and may see some revenue declines depending on the quarter. However, Salesforce still sees much potential for MuleSoft. In the past year, $4 hired 450 new employees for $4.
Read more: $4
In total, $4 generated $3.6 billion in revenue, 26% higher than this time last year. Total subscription and support revenue was $3.38 billion. The company's revenue guidance for the first quarter however, was slightly below Wall Street's expectations.
Over the past year, $4 generated $431 million in revenue.
"Now, we are coming up on 1 year since our acquisition of MuleSoft and we are absolutely thrilled by their outstanding performance and the value we are creating for customers like SunTrust, State of Colorado and Unilever," Keith Block, co-CEO of $4 said on the earnings call.