Salesforce is taking advantage of the “massive” digital customer transformation, CEO Marc Benioff told CNBC Tuesday.
The cloud software company claims 16.8% of the global market share, trumping the 5.7% market share of its closest competitor, Oracle. Salesforce delivered an earnings beat Tuesday, reporting 32 cents per share for the first quarter of its 2020 fiscal year.
The digital customer transformation “is as big as Y2K was for the tech industry,” Benioff told “Mad Money” host Jim Cramer. “We’re No. 1 in [customer relationship management], which is the fastest-growing part of enterprise software, because every company and every industry and every government [agency] is recreating themselves with their customer, so this is what’s driving our growth.”
Salesforce recorded $3.74 billion in revenue for the quarter, while Wall Street expected $3.68 billion. Revenue grew 24% year over year.
Some of the firm’s clients include Dell, Peloton, Southwest Airlines and several federal U.S. government agencies. Benioff said serving the federal Education, Agriculture and Interior departments has been one of the “most exciting things” during the quarter.
“They’re going through a huge digital transformation in the U.S. federal government, and Salesforce has been able to offer many of those agencies the rapid successful digital transformation that they need,” he said.
Shares of Salesforce gained nearly 4% during Tuesday’s session and rallied 3% in after-market trading. The stock has lost more than 7% in the past month, but it’s up 10.10% since the start of the year.