Asset Manager Investing in Global Technology Sector

We're an asset management firm allocating our capital into asset classes benefiting from technological innovation and applications globally. We serve as a family office of a tech professional who has spent over a decade as an entrepreneur, operator, and venture investor across Asia and the US.

Our small team is made up of diverse investment professionals who research, identify, and execute relevant opportunities. We occasionally share some of our investment memos, insights, and analysis here.

Wednesday, June 17, 2020

Q2.2020 - Salesforce: Platform Adoption Should Reaccelerate Growth

  • Despite having achieved a 30% revenue growth in Q1, Salesforce will guide a lower 17% growth for the full year. However, we expect growth reacceleration beyond 2020.
  • The pandemic allowed the company to enhance its community and culture-building efforts, which also signal its resilience and focus on culture-driven future growth.
  • The 360 platform grew by 62% to drive almost a third of the business in Q1, while enabling Salesforce to land AT&T as a customer, its largest deal to-date.

Salesforce (CRM)’s recent ~10% pullback from its YTD high in light of the softer full-year outlook provides an attractive entry point opportunity. We believe it still has one of the most interesting growth stories in the cloud software market, and we continue to recommend its fair risk/reward profile. The company will continue to benefit from its strong culture, resilient business, comprehensive platform offering, and the increasing penetration of enterprise BI and AI markets.

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