What happened
Customer relationship management (CRM) platform company salesforce.com (CRM +0.79%) crushed it in 2017. The stock rose an incredible 49.3% during the year, according to data provided by S&P Global Market Intelligence. But Salesforce's impressive year isn't just evident in its stock price gain; Salesforce's underlying fundamentals similarly reflect a stellar 2017.
Indeed, for Salesforce's fiscal 2018, which began on Feb. 1, 2017 and ends on Jan. 31, 2018, management raised its revenue guidance for the period on four separate occasions.
Image source: Getty Images.
So what
Salesforce's strong performance in 2017 is demonstrated in the company's trailing-nine-month results ending on Oct. 31, 2017 (the end of Salesforce's most recently reported quarter). Revenue during this period jumped 25% compared to the year-ago period, rising from $6.1 billion to $7.6 billion. During this same period, gross profit increased 27%, from $4.5 billion to $5.6 billion.
The year was marked by record quarters that consistently outperformed management's expectations.
What now
Highlighting Salesforce's momentum and the opportunity ahead, at the end of Salesforce's most recently reported quarter, it had $15.9 billion in booked business on and off the balance sheet, up 31% from the year-ago period.
Achieving an annual revenue run rate of $10 billion during calendar 2017, management now has its sight set on a $20 billion run rate. "And this incredible achievement is now coupled with an incredible dream. We now set our sights on $20 billion and doubling the company again," said Salesforce CEO Marc Benioff last summer.
