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No Forecast for Rain as Salesforce Commerce Cloud Continues Growing

No Forecast for Rain as Salesforce Commerce Cloud Continues Growing

The pandemic has caused so much disruption and chaos to our everyday lives, from how we work — if we are lucky enough to maintain our jobs — to how we buy groceries and birthday presents.

With major shifts from stores to online, ecommerce platforms have witnessed heavier traffic and stronger sales. Chiefly among these is Salesforce Commerce Cloud, which increased its revenue 21% in the second quarter.

No Forecast for Rain as Salesforce Commerce Cloud Continues GrowingIn terms of revenue streaming from subscriptions and support services, Salesforce announced that its Marketing and Commerce Cloud — yes annoyingly they lump them together unfortunately —  increased by 1.1% year over year to reach $746 million. Yet when considering  the fiscal first half, revenue increased 24% to hit $1.36 billion.

Unwrapping Commerce Cloud’s two components — B2C Commerce and B2B Commerce — both of them have hugely benefited from the ongoing digitalization of commerce that has been heightened during the last six months.

“We saw over 100% year over year GMV growth this past quarter, and I think it really reflects the broad digitization,” said Bret Taylor, president and chief operating officer of Salesforce, “and I think when I looked at our Commerce Coud and our differentiated value proposition, it’s two things: One is we do both B2C and B2B Commerce. And I think that when I talk to customers, it’s really about all of their channels.”

“Commerce Cloud is really a part of a broad solution that we’re providing to customers to really digitize their commerce experience, all the way from making that order on through the end of that customer experience, whether you’re picking it up on the curb or it’s being delivered to your doorstep, and those transformations have never been more important in this all-digital, work-from-anywhere world.”

No Forecast for Rain as Salesforce Commerce Cloud Continues GrowingAnd as for the third quarter, Sales are expected to hit $5.25 billion, while expectations for the full fiscal year are north of $20 billion.

And how did the other cloud-based Salesforce products fare during the same time?

Sales Cloud revenue increased 13% which climbed to $1.28 billion in the second quarter. The company’s flagship product, Sales Cloud is a leader in its market but continues to experience slower growth rates over time.

Service Cloud also climbed, by 20% to reach $1.3 billion in the second quarter. 

PS: UV is one of the world’s leading Salesforce Commerce Cloud (Demandware) agencies. Contact us to see how we can work together.

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