Tag Archive | "Company"

SAP CEO: We’re the Fastest Growing Cloud Company In the Enterprise Software Space

“We’re the fastest growing cloud company in the enterprise software space,” says SAP CEO Bill McDermott. “We grew total revenue by 16% and grew cloud 48%. Let me just put this on the line. When you grow cloud 48%, that’s 80% faster than Salesforce, that’s 30% faster than Workday. So when you have a franchise that’s growing your core business in double digits, the cloud faster than anybody out there, and you’re progressing the margin one point per year between now and 2023.”

Bill McDermott, CEO of SAP, discusses SAP’s amazing growth over the last quarter, especially in cloud, in an interview on CNBC:

Fastest Growing Cloud Company In the Enterprise Software Space

This is a good start to the year. It’s what the capital markets have been waiting for. They’ve been getting all kinds of revenue growth. We’re the fastest growing cloud company in the enterprise software space. They wanted to see the multiples on the margin. As we raised our full-year guidance we committed to improving the operating margins by one point per year for the next five years. Now after a $ 75 billion investment in innovation for our customers, our shareholders are saying wow, this is the moment I get the multiples on the margin and therefore the leverage in the share price.

Our cloud gross margins can improve to 75% between now and 2023. We’re hiring the absolute very best people in the world in artificial intelligence, machine learning, big data, all the areas that our customers want us to go. It’s not the number of people, it’s getting the absolute very best people. If you hire right, you manage your cloud gross margins right, and you have a highly inspired customer base where you’re growing with high renewal rates, you get tremendous leverage on the operating margin.

The Company Really Is On a Roll

What we’re doing is when we did restructure, and that was announced in Q4 and we executed it in Q1, we basically said we’re going to take about 4,400 people from areas that were not part of the new economy and hire to those tremendous standards. We’re bringing in the best data scientists in the world, best machine learning individuals out there, best enterprise application software coders around the world, and we’re developing in China, Israel, the United States, and in Europe. The company really is on a roll.

We’re almost done (with the restructuring) in the sense that we accounted for most all of it in Q1. We are finishing it up in the next quarter right now. For example, it’s being executed in Germany, but the majority of it has been handled. The stock today (is way up). We grew total revenue by 16% and grew cloud 48%. Let me just put this on the line. When you grow cloud 48%, that’s 80% faster than Salesforce.com, that’s 30% faster than Workday. So when you have a franchise that’s growing your core business in double digits, the cloud faster than anybody out there, and you’re progressing the margin one point per year between now and 2023, I think that’s why the shareholders have the stock up 8%.

What’s On My Mind is Where the Customer Needs Us To Go

All competition is on my mind. But what’s really on my mind is where the customer needs us to go. We weren’t losing to them. What the shareholders wanted, and we surveyed them, we had a capital market stay in New York and we used Qualtrics to survey them, they said we love your revenue growth we know you’re gaining share we just want more operating margin leverage out of the company. That’s what we gave them this quarter. It took us ten years and $ 75 billion in R&D and M&A to get to the point now where we have everything we need. We don’t need to do any more big M&A, we just need to perform well and spin-off margin and free cash flow for our shareholders and the stock goes on a run.

They (our customers) know we’ve given them so much innovation. It’s coming at them so fast that now they’re saying help me integrate it, help me fully leverage it across the enterprise and get the value from it. Interestingly, the customers and the shareholders are both in the same place. They’re saying you’ve done unreal things, now let’s dig in and drive real value from all the things that you’ve done. We bought an $ 8.3 billion dollar company called Qualtrics. We now took over a new category called experience management where we can actually tell the consumer experience inside or outside the company in real time. We have data now.

So think about this, if you’re running a company and you want to recruit to retire process in your company, how do my people feel when I recruit them? How did I feel when I trained them? Am I coaching them? Am I teaching them? Am I giving them everything they need in their compensation plan? We know this all now in real time with the Hana database built into the human capital management process. We do things that no other company can do.

SAP CEO: Were the Fastest Growing Cloud Company In the Enterprise Software Space

The post SAP CEO: We’re the Fastest Growing Cloud Company In the Enterprise Software Space appeared first on WebProNews.

WebProNews

Posted in IM NewsComments Off

SAP CEO: We’re the Fastest Growing Cloud Company In the Enterprise Software Space

“We’re the fastest growing cloud company in the enterprise software space,” says SAP CEO Bill McDermott. “We grew total revenue by 16% and grew cloud 48%. Let me just put this on the line. When you grow cloud 48%, that’s 80% faster than Salesforce, that’s 30% faster than Workday. So when you have a franchise that’s growing your core business in double digits, the cloud faster than anybody out there, and you’re progressing the margin one point per year between now and 2023.”

Bill McDermott, CEO of SAP, discusses SAP’s amazing growth over the last quarter, especially in cloud, in an interview on CNBC:

Fastest Growing Cloud Company In the Enterprise Software Space

This is a good start to the year. It’s what the capital markets have been waiting for. They’ve been getting all kinds of revenue growth. We’re the fastest growing cloud company in the enterprise software space. They wanted to see the multiples on the margin. As we raised our full-year guidance we committed to improving the operating margins by one point per year for the next five years. Now after a $ 75 billion investment in innovation for our customers, our shareholders are saying wow, this is the moment I get the multiples on the margin and therefore the leverage in the share price.

Our cloud gross margins can improve to 75% between now and 2023. We’re hiring the absolute very best people in the world in artificial intelligence, machine learning, big data, all the areas that our customers want us to go. It’s not the number of people, it’s getting the absolute very best people. If you hire right, you manage your cloud gross margins right, and you have a highly inspired customer base where you’re growing with high renewal rates, you get tremendous leverage on the operating margin.

The Company Really Is On a Roll

What we’re doing is when we did restructure, and that was announced in Q4 and we executed it in Q1, we basically said we’re going to take about 4,400 people from areas that were not part of the new economy and hire to those tremendous standards. We’re bringing in the best data scientists in the world, best machine learning individuals out there, best enterprise application software coders around the world, and we’re developing in China, Israel, the United States, and in Europe. The company really is on a roll.

We’re almost done (with the restructuring) in the sense that we accounted for most all of it in Q1. We are finishing it up in the next quarter right now. For example, it’s being executed in Germany, but the majority of it has been handled. The stock today (is way up). We grew total revenue by 16% and grew cloud 48%. Let me just put this on the line. When you grow cloud 48%, that’s 80% faster than Salesforce.com, that’s 30% faster than Workday. So when you have a franchise that’s growing your core business in double digits, the cloud faster than anybody out there, and you’re progressing the margin one point per year between now and 2023, I think that’s why the shareholders have the stock up 8%.

What’s On My Mind is Where the Customer Needs Us To Go

All competition is on my mind. But what’s really on my mind is where the customer needs us to go. We weren’t losing to them. What the shareholders wanted, and we surveyed them, we had a capital market stay in New York and we used Qualtrics to survey them, they said we love your revenue growth we know you’re gaining share we just want more operating margin leverage out of the company. That’s what we gave them this quarter. It took us ten years and $ 75 billion in R&D and M&A to get to the point now where we have everything we need. We don’t need to do any more big M&A, we just need to perform well and spin-off margin and free cash flow for our shareholders and the stock goes on a run.

They (our customers) know we’ve given them so much innovation. It’s coming at them so fast that now they’re saying help me integrate it, help me fully leverage it across the enterprise and get the value from it. Interestingly, the customers and the shareholders are both in the same place. They’re saying you’ve done unreal things, now let’s dig in and drive real value from all the things that you’ve done. We bought an $ 8.3 billion dollar company called Qualtrics. We now took over a new category called experience management where we can actually tell the consumer experience inside or outside the company in real time. We have data now.

So think about this, if you’re running a company and you want to recruit to retire process in your company, how do my people feel when I recruit them? How did I feel when I trained them? Am I coaching them? Am I teaching them? Am I giving them everything they need in their compensation plan? We know this all now in real time with the Hana database built into the human capital management process. We do things that no other company can do.

SAP CEO: Were the Fastest Growing Cloud Company In the Enterprise Software Space

The post SAP CEO: We’re the Fastest Growing Cloud Company In the Enterprise Software Space appeared first on WebProNews.

WebProNews

Posted in IM NewsComments Off

Salesforce CEO: Every B2B and B2C Company Is Becoming a B2B2C Company

Salesforce co-CEO Marc Benioff says that every company is becoming a B2B2C company. “Every B2B company and B2C company is becoming a B2B2C company,” says Benioff. “What company does not have to directly connect with the consumer? You could be a traditional industrial company who’s selling to B2B resellers and you have to be ready in this connected digital revolution to be able to connect directly to your consumer as well.”

Marc Benioff, co-CEO of Salesforce, discusses their recent high flying quarterly results and talks about how every company is becoming a B2B2C company in an interview with Jim Cramer on CNBC:

We Just Had a Fantastic Fourth Quarter

We just had a fantastic fourth quarter. We’re taking a look at those numbers right now and it was an amazing quarter. In fact, we beat our revenue estimates quite handily. As part of that, our co-CEO Keith Block closed the largest transaction in our history and the largest transaction ever in Barclays history. It was a deep nine digit transaction to help automate their 50 million customers. It really goes to show how the three major trends that are playing out in computing today, the cloud, broad digital transformation, and a focus on the customer, can really impact our company by creating a huge deal and also being able to support a huge transformation at Barclays.

I feel great about our business. I’ve always felt great about it. We’re coming up on our 20 year anniversary this Friday. It’s been 20 years that have been unbelievable to us here. We are coming up on a year that we’re going to do $ 16 billion in revenue that far exceeds my expectation. I still have never been more excited about Salesforce than I am right now. When I look at the short term I see $ 20 billion right around the quarter and I see $ 30 billion right around the corner. In fact, we initiated a four-year guidance today of $ 26 to $ 28 billion.

Every B2B and B2C Company Is Becoming a B2B2C Company

You can look at a great deal that we did this quarter with Amgen, a tremendous biotechnology company. This is a company that’s really expanding with our health cloud. This is our vertical strategy to build products specifically for certain industries. In this case, our health cloud is going to help Amgen connect with their customers in a whole new way.  Every B2B company and B2C company is becoming a B2B2C company. What company does not have to directly connect with the consumer?

Not just Amgen, everybody. You could be a traditional industrial company who’s selling to B2B resellers and you have to be ready in this connected digital revolution to be able to connect directly to your consumer as well. That’s a major trend that we’ve benefited from for so many years now and you’re going to see that continue to play out. That’s certainly something driving this relationship with Amgen as well.

Brunello Cucinelli and Lamborghini Using Salesforce to Connect

Brunello Cucinelli is one of the great fashion brands in the world and we’ve completely transformed Brunello Cucinelli. He actually touches the customer in many different forms. He has a direct B2C relationship. He’s online with them. We run his website. You go into his stores. That’s a direct consumer connection. But did you know he’s a B2B company also? That’s because he’s selling to resellers who are reselling his products in some of the big retail stores around the world. He’s a B2B and a B2C company. We have to bring it all together with him and give him a single view of his customer. That’s the transformation he has to go through and has gone through and that’s why he’s had such great growth and we’re so excited for him.

Another great example is Lamborghini. Of course, Lamborghini is actually traditionally a B2B type company. They’re selling to their dealers and they’re making sure their dealers are successful. some of those dealers are not even owned by Lamborghini but now they need to be able to connect with their customer in real time, all the time. They’re also a B2C direct customer. That’s why the new Urus, their new SUV, is built entirely on Salesforce. It’s the connected Lamborghini. That’s a vision for all car companies in the future that they can directly connect with you, not just connect with their dealer. That’s the B2C and B2B transformation that we’re talking about.

The post Salesforce CEO: Every B2B and B2C Company Is Becoming a B2B2C Company appeared first on WebProNews.


WebProNews

Posted in IM NewsComments Off

David Hauser: Founder Of Virtual Telephone Company Grasshopper (Acquired By Citrix For $170 Million) Explains How He Builds SAAS Companies

[ Download MP3 | Transcript | iTunes | Soundcloud | Raw RSS ] I can remember listening to many podcasts over the years that featured a certain sponsor – Grasshopper, a company that provides virtual telephone services. David Hauser is the founder of, among many companies, Grasshopper, by far his most successful business. It reached $ 30 […]

The post David Hauser: Founder Of Virtual Telephone Company Grasshopper (Acquired By Citrix For $ 170 Million) Explains How He Builds SAAS Companies appeared first on Yaro.Blog.

Entrepreneurs-Journey.com by Yaro Starak

Posted in IM NewsComments Off

You Don’t Have to Buy Google Ads to Create a Big Company

Self-made marketing phenomena Neil Patel says that there is an alternative to buying Google Ads to grow your company. The answer he says is creating a free leader product or service that drive customers to your site for you to later upsell. Patel sees this alternative solution as a less expensive and more sustainable “growth hacking” strategy.

Neil Patel discussed this growth hacking strategy in a recent video:

You Don’t Have to Buy Google Ads to Create a Big Company

Google Ads are continually rising in cost. What if I told you I have a really cool solution that’ll give you a much better ROI in the long run than Google Ads. Today, I’m going to share with you the best alternative to Google Ads. What most people don’t realize is, you don’t have to spend money on Google Ads to create a multibillion-dollar company.

Have you heard of Dropbox? Of course, you have and the chances are it’s on your computer. Did you know that when Dropbox first came out they tried to grow by doing Google advertising? And what they found is, even though they had a product that costs around $ 5 a month, which is around $ 60 a year per customer, they were spending roughly $ 200 to $ 300 to acquire a customer from Google Ads.

Can you see how those numbers don’t work out? Not only are they spending more to acquire a customer than what they’re paying in the first year, but just because someone’s paying you $ 5 a month, doesn’t mean that $ 5 is pure profit either.

How to Leverage a Growth Hacking Strategy

So, what did Dropbox do? They leveraged growth hacking. They figured out a way to get users to come to their site and generate more customers. They did this by creating a free product or a service, and that’s a better alternative to Google Ads. If you look at Dropbox, you look at Slack, even look at Amazon, although Amazon’s not really doing free with Prime buy you get free two-day shipping.

By creating something that’s free or such an amazing offer, think of it as your carrot that you’re dangling, you’re going to get so many people over to your website that then when you upsell them into your paid products or services, it’s so much easier because they’re already using your product or service, you’ve already built that brand loyalty, that connection, that rapport with them. It’s much easier to get that upsell.

It Does Cost a Lot to Offer a Free Product or Service

And here’s what most people don’t understand; they’re like, “Whoa Nellie, if I spent all this money getting people over to my website by having a ‘free’ product or service, it’s going to cost me a lot of money,” and it does. I recently released a tool called Ubersuggest. If you look at Uber suggest, I’m spending $ 150,000 a month releasing a lot of the features you see in tools like BuzzSumo or SEMrush, for free; 150 grand a month, that’s my cost. My cost isn’t going down, it’s continually rising too.

But you know what, if I had to do paid advertising on Google to get those visitors, my estimation shows that I would be spending a bit more than $ 600,000. Do you see how giving something away for free that costs me $ 150,000 a month is much better than spending $ 600,000 a month on paid ads?

Get Creative with Your Marketing

You do not have to spend money on Google Ads to create a big business, just look at Dropbox. Leverage growth hacking, and then as you have these free tools, these free products, these free services, and it may not be the best ones out there but something that people are used to paying for, what you can do is do things like creating invite flows. Dropbox has it: you want more free space, invite more users. I can do the same thing with Ubersuggest; I don’t, but I can say “Want more free usage? Invite more members.”

You can get creative with your marketing, leverage growth hacking. Just don’t put all your money into Google Ads, and the reason I say that is not because I don’t like Google Ads. Ideally, you should be doing both. But the reason I say this is, the moment you stop Google Ads you don’t have any more traffic.

By creating something that’s free, and it doesn’t have to continually cost a ton of money, like HubSpot, they have this free email signature generator. It doesn’t cost them much money; they only spent a few thousand dollars creating it. They don’t even spend any money maintaining it each and every single month. But they found that it can drive over seven figures worth of revenue to their business per year; not too bad from one free tool.

The post You Don’t Have to Buy Google Ads to Create a Big Company appeared first on WebProNews.


WebProNews

Posted in IM NewsComments Off

Greg Smith: Founder Of Canadian Tech Startup Thinkific Explains How They Used MVPs To Build A Hugely Successful Subscription Software Company

 [ Download MP3 | Transcript | iTunes | Soundcloud | Raw RSS ] One of the hottest business models in the tech startup world is anything with a recurring subscription business model, especially if it’s software based. Another hot online business model for talented individuals who want to make money from their knowledge, is […]

The post Greg Smith: Founder Of Canadian Tech Startup Thinkific Explains How They Used MVPs To Build A Hugely Successful Subscription Software Company appeared first on Yaro.Blog.

Entrepreneurs-Journey.com by Yaro Starak

Posted in IM NewsComments Off

Greg Smith: Founder Of Canadian Tech Startup Thinkific Explains How They Used MVPs To Build A Hugely Successful Subscription Software Company

 [ Download MP3 | Transcript | iTunes | Soundcloud | Raw RSS ] One of the hottest business models in the tech startup world is anything with a recurring subscription business model, especially if it’s software based. Another hot online business model for talented individuals who want to make money from their knowledge, is […]

The post Greg Smith: Founder Of Canadian Tech Startup Thinkific Explains How They Used MVPs To Build A Hugely Successful Subscription Software Company appeared first on Yaro.Blog.

Entrepreneurs-Journey.com by Yaro Starak

Posted in IM NewsComments Off

eBay’s Stock Takes Massive Tumble, Company Axes 300 Employees

This is not a good week for eBay. The company’s stocks took a massive tumble a day after revealing that it was slashing about 300 jobs in the Bay Area.

eBay informed the Employment Development Department of California of its move to cut about 300 jobs in the area by Friday, July 20. The affected employees were reportedly notified last month that they were being laid off.

The retail giant later reported its second-quarter earnings to its investors. The company secured a net profit of 64 cents per share, which was above what analysts projected. However, its warning that the present quarter’s revenue would go down resulted in a selloff that saw eBay’s stocks fall by 10 percent, ending in $ 34.11 per share.

eBay also reported that its expected full-year profit will be around $ 10.75 billion to $ 10.85 billion, down from its previous estimate of about $ 10.9 billion to $ 11.1 billion. The company also lowered its expectations regarding its third-quarter earnings per share to somewhere between $ 0.54 and $ 0.56.

News of the layoffs and the drop in stock prices is typically something to be worried about. Conventional wisdom dictates that cutting jobs should lead to a boost in share prices. After all, reduced cost means better profits. eBay certainly looks at it that way, as the company stated that the savings it made the previous quarter will provide them with additional funds to spend on marketing.

eBay has been relatively quiet the past few years, particularly when compared to rival Amazon. But despite losing its luster, the company has been performing steadily. Its stock prices even reached a high $ 36 per share last January. This capped a 139 percent gain of the past five years. Unfortunately, shares have dropped 27 percent since then.

Some Wall Street analysts have said that this drop in shares is puzzling, as the company continues to make progress with its key initiatives. They noted that the company is still “losing market share at a time when eCommerce, in general, is thriving.” One analyst even said that this could be due to eBay customers not bringing in new buyers to the platform.

The post eBay's Stock Takes Massive Tumble, Company Axes 300 Employees appeared first on WebProNews.


WebProNews

Posted in IM NewsComments Off

Search marketing software company WordStream acquired by Gannett for $150M

Founded in 2007, the popular PPC management tool has been sold.

The post Search marketing software company WordStream acquired by Gannett for $ 150M appeared first on Search Engine Land.



Please visit Search Engine Land for the full article.


Search Engine Land: News & Info About SEO, PPC, SEM, Search Engines & Search Marketing

Posted in IM NewsComments Off

Dropbox’s Initial Public Offering is Priced at $21, Company Market Cap Reaches $9.1 Billion

Investors, especially those who specialize in picking tech stocks, will now have one additional company to consider as an investment option. A decade after its founding, Dropbox is now a publicly traded company starting Friday, March 23, 2018.

The San Francisco-based firm successfully hosted its IPO on Thursday where investors bought Dropbox share at $ 21. Popular for its cloud-based files storage and syncing service, the company was able to raise a whopping $ 750 million from the event.

The IPO price of $ 21 per share is already way above the $ 16 to $ 18 price range previously proposed by the company earlier this month. The final price was even higher than the latest estimate when Dropbox raised it to between $ 18 and $ 20 in its regulatory document filed on Wednesday.

At its current share price, Dropbox is now a publicly traded behemoth with a market capitalization of $ 9.1 billion. However, this amount still falls short compared to the $ 10 billion valuation it received during its last round of private funding in 2014.

Of course, many are fearful that the tech company’s valuation trend will go downhill after its IPO, which seem to hound some tech listings. For instance, investors had to wait for almost a year before Snapchat’s shares rebounded and started trading above its June 2017 IPO price of $ 17 per share. This is a turn off for short-term investors who do not wish to hold on to a share for too long.

But most investors remain upbeat on Dropbox’s future earning potential. The company is already cash flow positive and performed well last year. Its sales are on the rise, garnering a massive $ 1.11 billion in revenues for 2017 alone. The figure represents a 30 percent increase compared to 2016’s performance.

[Featured image via Dropbox]

The post Dropbox's Initial Public Offering is Priced at $ 21, Company Market Cap Reaches $ 9.1 Billion appeared first on WebProNews.


WebProNews

Posted in IM NewsComments Off

Advert