Salesforce A/NZ boosts revenue to almost $1.7B

Salesforce Australia and New Zealand (A/NZ) has capped off its financial year ending 31 January with a significant increase in revenue, rising 20.6 per cent year-on-year to $1.66 billion.

In Australia, revenue rose by 18.6 per cent to $1.43 billion. Meanwhile, Salesforce’s New Zealand operations contributed $230.7 million, a rise of 34 per cent.

For the combined regional entity, profit before tax grew by 12.3 per cent, to $62.4 million. After reducing income tax expenses by nearly half to $22.5 million compared to the previous year, the total comprehensive income for the year was nearly $40 million, marking an increase of 198.4 per cent.

The financial results also provided a look into the revenue sourced from contracts with customers. During the 12-month period, subscription and support services made up the lion’s share, coming in at $1.5 billion.

Following from this was professional services, which brought in $169 million, then training at $3.4 million and other revenue coming in at $86,271.

Revenue was also split into services that were provided at both a point in time and over time, with the former responsible for $276.3 million and the latter for $1.4 billion.

The status of various subsidiaries in the regional business was also highlighted, noting that its controlled entities, Traction on Demand New Zealand and Traction on Demand Australia, were deregistered on March 14, 2023, and August 16, 2023, respectively.

During the period, Salesforce acquired all shares of then-Israel-based companies Datorama Technologies and ClickSoftware on December 1 and December 18, respectively, both of which offer software distribution and operate in Australia. However, these companies were deregistered on 5 June this year.

After the end of the period, Salesforce announced several large deals in Australia, including a four-year integration platform-as-a-service (iPaaS) agreement with the South Australian government and a multi-year deal with Australia Post.