Salesforce’s earnings report has sent its stock soaring as investors optimistic about the company’s new AI platform, Agentforce, boosting revenue growth expectations. The company reported better-than-expected quarterly revenue of $9.35 billion, driven by a surge in deals worth more than $1 million with AI tools. Executives attributed this success to Agentforce, which has provided a new energy into dealmaking and put to rest worries about elongated sales cycles.
Salesforce’s Data Cloud application also emerged as a key driver of these deals, with top 25 deals averaging over five clouds each. The company plans to hire 1,400 account executives globally in the fourth quarter to support growth opportunities in Agentforce and Data Cloud.
The company’s solid earnings report has raised its revenue guide for the fiscal fourth quarter, now ranging from $9.9 billion to $10.1 billion. Adjusted operating margin is also expected to increase, with the midpoint of guidance at 20%, a notable milestone for the company.
While Agentforce-related bookings are not expected to contribute significantly to cRPO, investors remain optimistic about the platform’s potential to reaccelerate revenue growth. The stock has surged in extended trading, suggesting strong investor enthusiasm for Salesforce’s new AI-driven strategies.
Key highlights from the report include:
* Quarterly revenue of $9.35 billion
* Deals worth more than $1 million with AI tools tripled year-over-year
* Top 25 deals averaging over five clouds each
* Plan to hire 1,400 account executives globally in the fourth quarter
* Adjusted operating margin expected to increase to 20% (midpoint of guidance)
* Revenue guide raised for fiscal fourth quarter
Source: https://www.cnbc.com/2024/12/03/cramers-investing-clubs-new-price-target-on-salesforce-crm-after-earnings.html