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Salesforce CEO Marc Benioff: Slack deal makes Salesforce 'a whole new type of company'

Salesforce CEO Marc Benioff: Slack deal makes Salesforce 'a whole new type of company'

Slack "supercharges our approach and lets all of our customers rearchitect their workforce to be truly from anywhere," Salesforce CEO Marc Benioff said. Subscribe to CNBC PRO for access to investor and analyst insights: https://cnb.cx/2Vtntx6 Salesforce CEO Marc Benioff, after announcing that the software giant is acquiring Slack Technologies, told CNBC Tuesday that the company is on a path to double revenue. In its fiscal third-quarter report released after the close, Salesforce provided guidance of $25.5 billion on the high end in fiscal 2022. Benioff, who founded Salesforce in 1999, said in an interview with Jim Cramer that the company is assembling the tools to reach even higher. When Cramer asked if the Slack deal could help the company triple its quarterly revenue, Benioff said Slack is one part of the solution to Salesforce’s long-term goals. “I have a $50 billion (revenue) dream, which is what I’m shooting for,” he said in a “Mad Money” appearance. “I feel very excited and motivated on everything that we need to do to double the company once again, and to make that happen we have to architect a complete solution” encompassing selling, marketing, service and integration. Salesforce reported earnings of $1.15 per share on an adjusted basis, topping analyst estimates of 75 cents. The company posted $5.42 billion on the top line, exceeding the $5.25 that Wall Street was anticipating, growing sales by 20% from a year ago. In its last five fiscal years, Salesforce has grown sales at a more than 24% annual clip. The company is on pace to achieve that growth rate after growing sales by 26% in the first three months of the 2021 fiscal year. Salesforce said it was acquiring the messaging collaboration app Slack for $27.7 billion, its largest deal to date. It’s the latest in a string of big splash deals Salesforce made for software companies MulesSoft, which it purchased for $6.5 billion in 2018, and Tableau, which it picked up for $15.3 billion last year. “Slack changes everything and makes Salesforce a whole new type of company,” Benioff said. “Customers are rearchitecting how they are working,” he added. “Now with Slack, it provides this incredible credible window into a collaborative interface onto all of our services and the whole enterprise itself.” Shares of Salesforce are up more than 48% year to date. Shares fell 1.81% to $241.35 in Tuesday’s session and are down more than 4% in after-hours trading. » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC https://www.cnbc.com/select/best-credit-cards/ #CNBC #CNBCTV