"Salesforce remains one of the most compelling FCF growth stories in software and a top pick," said Weiss. The analyst was most proud of the company's surprising billings growth, which increased 31 percent year-over-year versus estimates of 15 percent.
Sales cloud, "the largest and most mature segment in the Salesforce portfolio," saw growth accelerate in the first quarter. The analyst noted the company's proven ability to sign nine-figure deals after implementing price increases of 11–25 percent showed the company was "improving the value proposition of their solution set."
Additionally, working with large system integrators partners improved the functionality on the cloud platform and drove better growth in the segment, the Morgan Stanley analyst noted.
In summary, salesforce.com's ability to accelerate growth and operating margins signals "real efficiency improvements in the business."
Salesforce.com was trading up 4.21 percent at time of writing.
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