- Salesforce disclosed revenue numbers for MuleSoft and Tableau when it reported Q1 earnings Thursday.
- MuleSoft revenue grew 49% while Tableau grew 38%. Both are increasingly part of large customer deals.
- That growth shows the success of Salesforce’s acquisition strategy and is good sign for the pending Slack deal, analysts said.
- See more stories on Insider’s business page.
Salesforce disclosed revenue numbers for MuleSoft and Tableau when it reported its expectation-beating first quarter earnings on Thursday, marking the first time it revealed specific data since acquiring the companies in 2018 and 2019 for $6.5 billion and $15.7 billion, respectively.
Data integration firm MuleSoft reeled in $380 million in revenue during the quarter, a 49% increase from the previous year, while data analytics company Tableau brought in $394 million, a 38% increase from the year prior. Tableau and MuleSoft are Salesforce’s second and third largest acquisitions to date, with the pending $27.7 billion Slack deal weighing in as the largest.
MuleSoft and Tableau’s growth is a sign of Salesforce’s successful acquisition strategy, CEO Marc Benioff said on a call with analysts Thursday, and is a good sign for
“Our successful integrations of Exact Target and Tableau and MuleSoft continue to drive incredible results for our customers and business and gives us so much confidence in this pending Slack acquisition,” Benioff said.
“The breakouts and strong growth for Tableau and MuleSoft are a good indication of the robust platform adoption and were good to see as an indicator that the strategy is working and the acquisitions are paying off for investors,” said Futurum Research analyst Dan Newman.
The decision to break out Tableau and MuleSoft revenue independently was a smart move, according to Valoir analyst Rebecca Wettemann. Salesforce has typically included subscription and support revenue from MuleSoft and Tableau in its “Platform and Other” business segment, which also includes things like its low-code platform and online learning tool Trailhead, but showing their individual numbers makes it clear how much they’re contributing to Salesforce’s overall growth.
“Salesforce recognizes that the platform business is not just a big growth opp but the battleground for enterprise apps moving forward, so it wants to highlight that growth,” Wettemann said.
She added that it’s a good sign for what people can expect from the integration of Slack. That deal is expected to close by the end of the second quarter, which ends July 31, chief financial officer Amy Weaver said on the call with analysts.
Of Salesforce’s overall $5.96 billion in revenue for the quarter, Platform and Other contributed $1.75 billion and was the firm’s fastest-growing business segment, with 28% growth. MuleSoft and Tableau brought in 41% of that, the company said in its earnings release and their individual 49% and 39% revenue growth .
It’s a sign that both products are becoming more important to Salesforce’s core business. MuleSoft helps integrate Salesforce’s platform and tools with outside applications, while Tableau brings the ability to process and analyze all of that data.
“We’re seeing more and more inclusion of Tableau and MuleSoft and our large deals as customers accelerate their digital transformation,” Benioff said. Tableau was included in eight of Salesforce’s top ten deals in the past quarter, while MuleSoft was included in five of the top ten deals, he added.
Overall the company saw a “record” number of “seven figure” deals in the quarter, Weaver said, and on average, four clouds were included in each deal.
That tracks with what chief product officer David Schmaier told Insider earlier this month: Salesforce has increasingly seen customers buy a suite of its products as opposed to just one tool.
The growth from MuleSoft and Tableau is contributing to Salesforce surpassing SAP as the largest enterprise applications company in the world, Benioff said. As of after-hours on Thursday, Salesforce had a market cap of $208 billion while SAP’s was $163 billion.
“This pending acquisition of Slack,” Benioff said, “I mean, we’ve never been better positioned for the future.”
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