Operating at the Intersection of Technology and the Capital Markets
Tag: Salesforce
As I think about Technology companies in the back half of 2023 and 2024, pricing power has to erode at some point. For companies such as Google, subscription price increases this calendar year have far outpaced revenue growth (higher prices, fewer unit sales). I imagine that many companies that exercised pricing power in 2021, 2022 … Continue reading Pricing Power in 2H 2023 and 2024
Back in December I wrote that Oracle (ORCL) should acquire Salesforce (CRM). Activist investor Elliott Management may force a CRM sale, Oracle is the natural acquirer in our view. Salesforce has not had an operator at the helm capable of driving operating margin expansion since Keith Block left his co-CEO post in February 2020. Salesforce … Continue reading A Salesforce Sale?
I would not be surprised to see Salesforce (CRM) and Oracle (ORCL) combine in 2023 or 2024. A Salesforce, Oracle deal used to be rumored back around the time of CRM's 2004 IPO which raised $110 million. At that time Oracle Co-Founder & CEO Larry Ellison was pushing hard on building ORCL's Application layer (largely … Continue reading Oracle + Salesforce
It is a joke that we are in December and Snowflake (SNOW) did not publish a FY 2024/calendar year 2023 outlook: https://investors.snowflake.com/events-and-presentations/default.aspx SNOW remains overvalued at about 15x calendar 2023 Revenue (assumes CY'23 Revenue of $3 billion). That will change next year. It is not surprising that Bret Taylor is no longer Salesforce (CRM), Co-CEO … Continue reading Snowflake & Salesforce: Outlooks & Leadership
When it comes to Technology companies, headcount reductions are rarely "one & done". This used to be especially true of Bay Area Technology companies which are famous for lacking operating discipline (i.e. cost discipline). However, the Bay Area aversion to running profitable businesses has permeated the Tech sector over the past 12 years of easy … Continue reading Tech Company Layoffs Are Rarely “One & Done”
I have never witnessed a Technology company that so obviously lacks Product Market Fit ("PMF"), choose to ignore this existential weakness and instead focus on M&A litigation. Twitter (ticker: TWTR), has its priorities out of order. Perhaps it is because Twitter knows that it lacks PMF and the culture to solve the problem that it … Continue reading Twitter Is A Dumpster Fire
Naming Bret Taylor Salesforce's Co-CEO is hardly a surprise. In March we wrote that Bret Taylor - Salesforce's then COO - could be next in line for Salesforce's CEO chair. Mr. Taylor was named Co-CEO effective immediately. Read the press release HERE. See our CEORater profile of Mr. Taylor below. Salesforce Co-CEO Bret Taylor https://soundcloud.com/ceorater
CRM acquired Tableau in August 2019 for $16 billion. Tableau generated approximately $1.5 billion of trailing subscription and support revenue in the fiscal year-ended January 31, 2021. Investors think nothing of applying a 20-30x revenue multiple on any Technology company that is growing. Thus, why wouldn't Salesforce CEO Marc Benioff consider taking advantage of this … Continue reading Salesforce (CRM) Should Spin-Off Tableau
Earlier this week Amazon (tkr: AMZN) announced that Adam Selipsky would become AWS' next CEO. Current AWS CEO Andy Jassy will become Amazon CEO later this year as founder Jeff Bezos will hold only the Executive Chairman title. Selipsky previously spent 11 years at AWS before becoming CEO of Tableau which was acquired by Salesforce … Continue reading AWS Would Do Well To Focus On The Healthcare and Government Sectors
Director & Officer ("D&O") insurance premiums spiked and coverage narrowed last year as a result of COVID-19. As vaccinations are distributed COVID-related underwriting risk will begin to soften which will be reflected in lower premiums and broader coverage. All of this is to say do not expect every mid-to-large-sized company to be fully back to … Continue reading Back To The Office Will Look Different Compared To 2019
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