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- Salesforce expects to reach its $20 billion revenue goal by 2022, the company told analysts on Tuesday. That’s more than double the $8.4 billion in revenue the cloud software company saw in its last fiscal year. To get there, Salesforce said it will expand its international market share, and focus on large commercial and enterprise companies.
It’s no secret that Salesforce aims to be a $20 billion company. But the cloud software company now has a target date and a plan for getting there.
Salesforce expects to post $20 billion to $22 billion in revenue in its 2022 fiscal year, the company told analysts Tuesday. If it hit even the low end of that range, its revenue would be more than double the $8.4 billion it posted in fiscal 2017, which ended in January.
To get there, Salesforce expects to offer a wider range of products to a broader set of customers worldwide. The company expects its total addressable market – which is the combined amount of money spent globally with Salesforce and all of its competitors on the products it offers – to grow from $72 billion in 2018 to $120 billion in 2022.
But the company also expects to be riding a wave of cloud software adoption by big corporations, which will also help expand the overall market. Indeed, the company expects that 80% of the growth in the market will be attributable to increased spending by commercial businesses and large enterprise companies.
The customer relationship management software company also expects international sales to help boost its overall business. As of last year, Salesforce’s sales in both the region consisting of Europe, the Middle East, and parts of Asia region, and the region comprised of Japan, Asia Pacific, and China represented only about 7% of the total addressable market in those areas . It expects to grow faster than the overall market in both of those regions and gain share in coming years.
Salesforce plans to bulk up to hit its goals. The company expects to grow its workforce from around 30,000 employees in its current fiscal year to around 45,000 in fiscal 2022.