Jason Andersen’s Post

Salesforce Hits a Rough Patch: What's Next? 📉 Salesforce expects lowest quarterly growth in two decades See details 👇 ✅ Economic Impact 📈 Salesforce has reported disappointing revenue, falling short of expectations with a forecast for the next quarter indicating the lowest growth rate in over two decades. ✅ Financial Performance 💔 Despite a year-on-year revenue increase to $9.13 billion and a significant rise in net income from $199 million to $1.5 billion, Salesforce's stock plunged by more than 16% due to missed revenue forecasts and growth concerns. ✅ Investor Concerns 🤔 Analysts are questioning why Salesforce is not adjusting its full-year guidance, suggesting potential risks remain unaddressed. ✅ Market Reaction 😰 The market's reaction was sharply negative in after-hours trading, reflecting investor anxiety over Salesforce’s future revenue growth and its investment in generative AI technology. ✅ Comparative Industry Analysis 🚀 Unlike its peers Microsoft and ServiceNow, Salesforce's AI investments have yet to yield significant growth, signaling potential competitive disadvantages. #Salesforce #CRM #TechNews #AI

Ok, some thoughts on Salesforce Q1 results, which have been met with a lot of criticism because the guide basically moved the company from a mid-double-digit growth story to a single digit growth story. From this, questions about the overall health of SaaS and whether we are seeing a big slowdown for enterprise software and SaaS. First, let's look at the numbers. From an earnings performance, what we saw was an incredibly thin miss by Salesforce on revenue with a solid beat on EPS: EPS $2.44 vs $2.38 Est Rev $9.13B vs $9.15B Est Guidance Q2 EPS $2.34-$2.36 vs $2.40 Est Q2 Rev $9.2-$9.25B vs $9.4B Est FY EPS $9.86-$9.94 vs $9.68-9.76 Est FY Rev $37.7B-38.0B vs $38.1B Est From a guide standpoint, <10% simply isn't exciting so the analysis needs to move from revenue to diversification and pivot to AI. TLDR- Is AI a catalyst for a company like Salesforce. My take is yes. And while we are seeing a massive front load of infrastructure spend to enable compute at scale for training and inferencing data, I think the consumption of AI will likely be the next frontier and customers that are on the Salesforce platform (and others) will be increasing spend for AI driven use and Salesforce will need to execute on more net revenue expansion and compel customers that it can deliver AI at scale across the platform with low barrier of entry and high efficacy. Some areas to look at that reflect a more positive outlook. The growth of its acquired companies that deliver efficiency, productivity, and data connectivity (Mulesoft, Tableau, and Slack). These are the highest growth areas for Salesforce and are positive indicators that the M&A strategy is adding value, and these have significant ties to AI and Data, which should yield more revenue per seat/customer in the future. Competition is a big consideration. In particular Microsoft and ServiceNow come to mind. The fight for dollars and AI spend is palpable and Salesforce has its work cut out. But it has a good opportunity to capitalize. I remain optimistic. #Salesforce #Earnings #CRM

Salesforce ☁️ 𝐟𝐚𝐜𝐞𝐬 𝐆𝐫𝐨𝐰𝐭𝐡 𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬: 6 𝐊𝐞𝐲 𝐐𝐮𝐞𝐬𝐭𝐢𝐨𝐧𝐬 𝐟𝐨𝐫 Marc Benioff Despite a strong Q1 with $9.1B revenue and profit exceeding expectations, Salesforce projects fiscal-year growth to drop to 8-9%, signaling a potential slowdown of up to 7%. When announced, we all saw the market cap loose $49B immediately! Marc Benioff and his team cite a "measured buying environment" as the main cause, I suspect a key trend that also impacting consulting firms. 𝐊𝐞𝐲 𝐞𝐥𝐞𝐦𝐞𝐧𝐭𝐬: 𝐀𝐈 𝐑𝐞𝐯𝐞𝐧𝐮𝐞: Where’s the expected boom from AI investments? Jason M. Lemkin just discussed this with Harry Stebbings in 20VC, AI revenue will not come from a net increase in budget. 𝐃𝐚𝐭𝐚 𝐂𝐥𝐨𝐮𝐝 𝐈𝐦𝐩𝐚𝐜𝐭: Despite its success, why is there no significant revenue boost? 𝐂𝐨𝐫𝐞 𝐏𝐫𝐨𝐝𝐮𝐜𝐭𝐬: Sales Cloud and Service Cloud growth is definitely stalling. 𝐂𝐑𝐌 𝐯𝐬 𝐂𝐗 𝐌𝐚𝐫𝐤𝐞𝐭: Has the CRM market reached its peak and needs to reinvent itself? do CRM need to evolve into a broader CX market? 𝐆𝐫𝐨𝐰𝐭𝐡 𝐯𝐬 𝐏𝐫𝐨𝐟𝐢𝐭𝐬: Has focusing on profits hindered competitive growth? 𝐃𝐚𝐭𝐚 𝐓𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧: Should and can Salesforce successfully pivot to a data-centric model? For more insights: https://lnkd.in/eGSfkfU4 #Salesforce #CRM #CX #AI #DataCloud #Transformation

Salesforce, Inc. (CRM) has exhibited a remarkable journey of growth and innovation over the years. From 2008 to 2023, the company's revenue escalated impressively from $0.75 billion to $31.35 billion, showcasing a significant expansion in its market presence and business efficacy. This growth trajectory is a testament to Salesforce's robust business strategies and its ability to adapt to the evolving technological landscape. The company's financial health, as indicated by its gross profit and EBIT, reflects efficient cost management and a strong operational performance. Despite some fluctuations, Salesforce has maintained a positive trend in net income, underlining its capability to manage expenses effectively while strategically reinvesting in growth opportunities. Recent news around Salesforce has been predominantly positive, highlighting its role in driving the Dow Jones' outperformance and its alignment with the upward trend in the U.S. GDP growth. Particularly noteworthy is Salesforce's active engagement in leveraging AI for sustainability, positioning itself at the forefront of technological innovation and environmental responsibility. Analysts and market sentiments are largely bullish on Salesforce's potential. The company is often rated as a strong buy, reflecting confidence in its long-term growth prospects, especially in areas like AI and customer engagement. Some analysts believe Salesforce is currently fairly valued, considering its recent performance and solid market positioning. #salesforce #software #ai #growth #revenue #investing

I just posted something regarding Salesforce's 3rd quarter performance. Anyway, in the process of writing it, I saw that LinkedIn now offers an AI tool to help me write my post. Sure why not? Let's give it a shot. This is what the AI came up with: "Salesforce beats Q3 earnings expectations, showing resilience amidst economic and political turmoil. Let's hope this is the start of a positive trend. #Salesforce #Q3earnings #resilience" Yet this is what I ultimately published: "In the midst of inflation, interest rates, fears regarding 2024, plus two ongoing wars abroad, and the never ending political nonsense that is out there - remember we are coming into an election year. . . It is simply nice to see this. Salesforce just killing it in the third quarter. Hopefully this is the trend both for IT and the economy in general." In short, The AI version offered up a shorter version, a summary, but is there any benefit in going from four lines to two lines? It is nice to now have these two options. One with the specifics, the details, and the other a summary. The listing of those details, in the process, provide a point of view, a framing, the beginnings of a voice even. There is an intent in sharing those details. I wanted to not only hold up Salesforce's performance, but hold it up against the constant chatter about inflation, wars and politics. Enough said. . . AI offers alternatives, a ery quick alternative, but keep in mind that alternative is probably something other than your voice and your viewpoint, your intent. No doubt it is quick, but maybe there is a cost. And there it is again? Do I want to rewrite with AI?

Salesforce saw its market value increase by around $10 billion after reporting strong earnings with cost-cutting measures and solid demand. The stock has risen over 60% this year. Is the "AI bubble" powering this? What do you think? Let us know in the comments below! #salesforce #trailblazercommunity #trailhead #trailblazers #crm #crmsoftware #crmsolutions #ai

Sharing My Journey at Salesforce to date! 🌟 It has been an incredible 2 months at Salesforce so far, engaging with many leaders in the Professional Services space. I've noticed key challenges like streamlining operations, enhancing client communication, and leveraging data for better decision-making. Salesforce can help tackle these challenges by: 🔹 Automating workflows for efficiency 🔹 Personalising client communications 🔹 Providing actionable insights with robust data analytics Looking forward to continuing these valuable conversations and driving success together! #Salesforce #ProfessionalServices #CustomerSuccess #Automation #DataDriven

Is it only me? Or has anyone else noticed how Salesforce is transforming to facilitate modern revenue operations? With AI strutting onto the scene. And businesses leaning towards simpler tools. Salesforce’s new releases look like they are focused on simplifying and streamlining sales operations. I mean, have you had a peek at Salesforce's latest releases? And if you ever thought of diving into Salesforce, now's the time! But why's this a big deal for businesses, you ask? Lightning-fast deployment Effortlessly adapting to changes A user experience so sleek it's practically gliding. These are the capabilities the modern revenue teams and buyers are after. These user-friendly capabilities aren't just a convenience, It makes operations slicker for everyone. And boosts the productivity of revenue teams. And Salesforce is crafting an environment that simplifies revenue operations, making it more accessible and user-friendly. The ripple effect is bound to elevate productivity and efficiency across the board. BTW, it’s more than a shift in technology. It’s a strategic move to accommodate the changes in the RevOps realm. And I’m really excited to see what unfolds further with more releases. Are you? #salesforce #salesforceconsultation #revops #revenueoperations

Salesforce's stock was down by 20% after the earnings announcements, with investors disappointed by the (unchanged financial guidance for FY25). Salesforce continues to see a difficult market environment due to high-tech and retail & consumer goods, despite the rebound in financial services and good performance in public sector. Projects are delayed, and their TCV is lower than initially planned. There were a few pockets of good growth in Japan, Canada, and India. A few thoughts: ● Salesforce continues to emphasize its efforts around data and AI. Data Cloud (which groups its analytics and API integration products) represents 25% of all million-dollar deals. Client interest in AI remains strong, with Salesforce active in partnerships with hyperscalers and embedding AI in its products ● The failed (unconfirmed) Informatica acquisition attempt, therefore, reflected a Salesforce intent to strengthen its portfolio in the data transformation area ● Salesforce has maintained its annual FY25 guidance despite a slowing quarter in Q2, showing confidence in the future, despite the economic environment. #Salesforce #SaaS

Managing data in Salesforce is hard. Super hard. But taking on big challenges has always been part of our DNA at Complete. Since being founded under the now Salesforce-acquired Traction on Demand, we’ve been about solving real headaches for real people. Listening to revenue leaders' data challenges and turning them into our to-do list 📑 So today, as we share with you a new Traction Complete, we’re doubling down on our mission to help automate the revenue tasks that slow you down and to set your business in motion at a time when data quality is critical. But why is data management so important right now? #AI is here, whether we like it or not. But for many, your data is going to cause the biggest challenge in adoption. Garbage in, garbage out as they say. This is why we are so passionate about sharing with you today The RevOps Data Management Suite for Salesforce. As we say goodbye to the nine T’s, we want to say thank you to everyone who has helped us get to where we are today. ToD alumni, Salesforce, Salesforce partners, Pender Ventures, Thomvest , customers, the list goes on… we are lucky to stand among giants. And we are here to help you set your #datainmotion 👉 https://lnkd.in/e44biVJm Aim high, and together we’ll help you start trusting your Salesforce data again.