The strong results of Salesforce to end the year 2018 give cloud companies some much needed room to breath. The negative results from the IMF and Goldman Sachs to close the year are a heavy load on tech companies.
Things are going well on Wallstreet, the Dow Jones went up 0.8% in the beginning of December and the Nasdaq followed with 0.3%. This means the stock exchange started in a positive note, but negative signs from the IMF and Goldman Sachs put an end to the early month party.
The world economy is slowing down on a faster rate than the IMF predicted last month ‘ claims IMF Director Christine Lagarde. ‘ Some countries need to withdraw out of the trade war the embarked in as soon as possible ‘ adds the economic fund.
On a more positive note – the IMF was happy with the results that Salesforce provided last month. They witnessed a surge in the stock of Salesforce. The cloud company exceeded their expected profit expectations. Even better, the outlook for 2019 is above what they are expecting it to be, and the company took advantage of the rising demand of their cloud services.
For 2019, Salesforce is expecting a turnover of $ 16 billion. This number is formed based on their growth in the 3rd quarter of 2018 by 26% to $ 3.39 billion, especially baring in mind the big contracts that did very well for Salesforce. They saw an increase of 46% on deals above the million dollar mark.
The results that Salesforce can show gave the tech stocks on Wall Street a little push. Lately these stocks were falling because of the fear that they had reached their peak in growth and profit already. Stocks that offer cloud services such as Amazon, Nutanix and Workday saw in increase mainly because of Salesforces’ strong finish to the year.
As you might expect, Salesforce was leading the market in CRM systems for 2018, according to the numbers from independent agency IDC. However the competition from Microsoft, Oracle and SAP is growing.
Looking at the expectations that Salesforce has for itself for 2019, we will have to wait and see if they can exceed the amazing succes they have had in the last couple of years. With more and more companies of all sizes looking to implement the system, their growth is not even close to coming to an end.
See you in 2019!