Mad Money

Salesforce CEO Marc Benioff: Our $20 billion revenue target just became that much more attainable

Key Points
  • "Mad Money" host Jim Cramer sits down with Salesforce founder, Chairman and CEO Marc Benioff to discuss the company's earnings results.
  • Benioff says that his company's latest earnings results will help Salesforce reach its $20 billion revenue goal.
CRM's Benioff: $20 billion revenue target just became that much more attainable's goal of reaching a revenue run rate of $20 billion by 2022 just got a lot more realistic, Salesforce founder, Chairman and CEO Marc Benioff told CNBC on Wednesday.

In an exclusive interview with "Mad Money" host Jim Cramer after earnings, Benioff touted his cloud company's "blowout quarter."

Salesforce beat analysts' earnings estimates by 1 cent and posted higher-than-expected revenue, up 24 percent year over year. The company also raised its quarterly and full-year guidance.

"It was our best quarter we've had in a long time. It's an amazing quarter," the CEO said. "I think that because of this incredible quarter, you're going to see us really have a huge dream of getting to $20 billion faster than any other software company ever."

The $20 billion goal refers to Salesforce's annual run rate, or an estimate of what the company will make in sales for a given year in the future.

In the fourth quarter, Salesforce's deferred revenue — what the software giant earns in advance for goods or services that have not yet been delivered — grew by double digits year over year, making Benioff that much more bullish on the $20 billion prospect.

Salesforce's deferred revenue on the balance sheet grew by 28 percent year over year, while its un-billed, off-balance-sheet deferred revenue grew 48 percent year over year.

Benioff told Cramer that this quarter was boosted by Salesforce signing more million-dollar contracts than ever before.

Much of the strength came from Europe, where Salesforce entered into contracts with major global brands like Adidas and big financial players like Deutsche Bank.

"If you've been to and bought your Yeezy 350s, you know that it's all Salesforce. If you're on, it's Salesforce. If you get an email from Adidas, it's Salesforce," Benioff said. "We're building a single view of the customer for Adidas and that's giving them the ability to sell and connect with their customer in an all-new way."

Banks like Deutsche and the Spanish BBVA use Salesforce's financial services cloud, built specifically for the banking industry, to connect more seamlessly with clients, Benioff said.

For Benioff, who leads one of the world's top customer relationship management companies, there are three distinct components to sustainable growth.

"No. 1 is customer focus," he told Cramer. "The second key thing that you need for sustainable growth is a connection to: who is your community? 'Who are all your key stakeholders' is another way to say it."

Benioff emphasized that Salesforce's stakeholders are more than just their shareholders: they are also its customers, partners and communities.

"Finally, what's your culture?" Benioff said. "What are your values? What is it like to be in your company? What does it feel like to be in your office or at your events? And if you can put those three things together – culture, community and customers – I think you can have a winning success today."

Watch Marc Benioff's full interview here:

Salesforce CEO Marc Benioff: Our $20 billion revenue target just became that much more attainable

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