tech
Salesforce beats on earnings and revenue but full-year guidance comes in light
Salesforce has been hammered by investors on concern that artificial intelligence models and services will disrupt some traditional software products.
TL;DR
- Salesforce reported Q1 adjusted EPS of $3.88 and revenue of $11.13 billion, surpassing LSEG consensus estimates.
- Net income increased to $2.11 billion from $1.54 billion year-over-year.
- Full-year guidance was raised to $14.06-$14.12 in adjusted EPS and $45.9-$46.2 billion in revenue, though the revenue midpoint was slightly below analyst expectations.
- Weakness was noted in Tableau bookings and renewals, and continuing challenges in marketing and commerce were cited.
- Salesforce's stock is down 33% year-to-date, impacted by investor concerns over AI's potential disruption.
- Agentforce AI tools saw annualized revenue reach $1.2 billion, a 205% year-over-year increase.
- The company acquired commerce startup Cimulate and sales startup Momentum during the quarter.
- CEO Marc Benioff expressed confidence in Slack's future growth, predicting it could become a $10 billion cloud business.
- Remaining performance obligation stood at $67.9 billion, slightly below the consensus estimate.