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Bret Taylor resignation news overshadows Salesforce Q3 improvement

Bret Taylor stepping down as co-CEO of Salesforce in a stunning announcement that appeared to come out of nowhere is making far more headlines than Salesforce’s 14 per cent increase in third-quarter sales.

“After a lot of reflection, I’ve decided to return to my entrepreneurial roots. Salesforce has never been more relevant to customers, and with its best-in-class management team and the company executing on all cylinders, now is the right time for me to step away,” Taylor said in a statement announcing his resignation.

Despite exceeding analysts’ expectations, this statement did not allow revenue growth to thrive across headlines. Salesforce reported revenue growth of $7.8 billion for the quarter ending October 31, with subscription and support revenue increasing by 13 per cent year on year to $7.2 billion, while professional services and other revenues increased by 25 per cent to $604 million.

Despite the strong third-quarter performance, Salesforce’s share price fell more than 9 per cent in Thursday morning trading, as much of the industry commentary focused on Taylor’s resignation.

The sources for this piece include an article in CIO.

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