Forum Key Insights

Salesforce’s MuleSoft Business – Macro Impacts

  • Public Equity
  • TMT
  • North America

Last month, Third Bridge Forum spoke to a former senior executive at MuleSoft LLC (Salesforce Inc) to discuss MuleSoft’s TAM and growth opportunities, including integration platform as a service (iPaaS) and application programming interface (API) management. Here are the need-to-know key insights from that Interview.

  • The specialist said MuleSoft’s TAM could be much larger than people appreciate, with USD 100bn a reasonable starting point. However, execution issues have seen Q1 FY 23 revenue growth fall to 9% from 44% in late 2021. Despite this, the specialist is confident MuleSoft can return to growth above Salesforce’s own growth.
  • Considering current economic uncertainty and weakness, MuleSoft is somewhat “recession-proof”, we were told, given the “mission-critical” nature of its solutions with notable ROI benefits. 

“The problem that MuleSoft is solving around connectivity, around composability, in my opinion, it’s mission-critical in any macro environment.”

  • Although MuleSoft can provide high ROI, they said it might not be fast ROI. MuleSoft could take quarters to achieve what other companies might do in months, the specialist added.
  • Despite a number of competitors that focus on MuleSoft’s core areas, the specialist told us large hyperscale businesses are its most formidable rivals now and likely future threats. They highlighted Microsoft as such a business with leading products in iPaaS and API management. 

For more human insights on MuleSoft and the iPaas/API industry, click on the transcript below. 

Related Transcripts

The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

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