Salesforce.com Inc. is dealing with a sales slowdown and a slew of high-level departures at MuleSoft, increasing concerns that the company won’t maintain the gains it has made since Salesforce bought MuleSoft for $5.67 billion in 2018.
MuleSoft delivers integration services, also known as application programming interfaces (APIs), which create bridges between different software programs to allow them to communicate with one another.
MuleSoft, which connects clients’ software across the internet, is Salesforce’s most complex product, making the outflow of experienced technical and sales managers all the more difficult to overcome. Former employees claim that a decision made years ago to fold hiring into the more extensive Salesforce personnel system harmed recruiting, further reducing the talent needed at the unit.
In an investor conference hosted by Barclays Plc this week, Salesforce Chief Revenue Officer Gavin Patterson said, “MuleSoft is going through a bit of a rough patch. It’s not completely unexpected.” He added, “I am very confident we will work through them in the next couple of quarters.”
Annual sales have increased from $284 million to $1.5 billion since Salesforce acquired MuleSoft, according to a slide shared at a recent investor day. However, the rate of growth has slowed noticeably. The unit’s revenue grew 16 percent to $356 million in the three months through Oct. 31, down from a 39 percent year-over-year increase the previous quarter.