On February 25, 2020, Salesforce made several significant announcements in addition to its planned earnings report.

Co-CEO Keith Block To Step Down; Gavin Patterson Named President and CEO of Salesforce International

The company announced that Co-CEO Keith Block has stepped down but will remain as an advisor to Chairman and CEO Marc Benioff.

Separately, Gavin Patterson, who became the company’s Chair of Europe, the Middle East and Africa in September 2019, was named President and CEO of Salesforce International. Patterson was previously Chief Executive of BT Group plc.

Salesforce To Acquire Cloud and Mobile Software Maker Vlocity for $1.33 Billion in Cash

Salesforce announced a definitive agreement to acquire Vlocity for $1.33 billion in cash (net of the shares Salesforce already owns). Vlocity is a leading provider of industry-specific cloud and mobile software built natively on the Salesforce platform that serves global communications, media and entertainment, energy, utilities, insurance, health and government organizations. The acquisition is expected to close in fiscal 2Q21, subject to customary closing conditions.

The acquisition should also enable Salesforce to cover the additional industries, expanding beyond its current offerings in commerce, manufacturing and consumer goods.

Fiscal 4Q20 Results and Guidance

The company reported fiscal 4Q20 revenues of $4.85 billion, up 35% year over year, and adjusted EPS of $0.66, beating the consensus estimate by $0.10 but down from $0.70 in the year-ago quarter.

Revenues in FY20 were $17.1 billion, up 29%. Adjusted EPS in FY20 was $2.99, up 9% from $2.75 in the prior year.

Raises FY21 Guidance

Salesforce raised FY21 guidance from $21.0 billion and now expects revenues of $21.1 billion (up 23% over the prior year). The company expects adjusted EPS of $3.16–3.18, with the midpoint up 6% from FY20.

Please see our recent company report on Salesforce, the overview of its recent investor meeting, and our wrap-up of the recent Dreamforce conference.