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Salesforce Revenue Beats on Promise of AI Strategy Boost

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Bloomberg Dec 4, 2024 07:10 · 3501 Views

Salesforce reported quarterly revenue that topped analysts’ estimates at $9.44 billion, sending shares higher and boosting investor hopes that the company’s strategy for artificial intelligence products will lift financial results. Tom Mackenzie reports on Bloomberg Television.

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Transcript

  • 00:00 Tom, what, what is behind this boost?
  • 00:03 Well, you're right.
  • 00:03 Look, there's been a change in terms of the direction that's been coming through for the last few months for Salesforce in terms of the job cuts, the efficiencies.
  • 00:09 They were under pressure from some of their investors to do that.
  • 00:11 Marc Benioff and team, they invested though in Agent Force, so an AI agent that they're pushing out to their customers and it seems to be paying off.
  • 00:19 To your point, the sales were beat, the margins were beat, The outlook as well for the current quarter coming in and looking favourable.
  • 00:26 Interestingly, Marc Benioff saying that it's not just the numbers of the current quarter, most recent quarter that excite him.
  • 00:31 He said they were fantastic numbers.
  • 00:32 He says he's more excited about the prospects of this technology, these AI agents, as they're characterized at least by Salesforce,
  • 00:40 they've hired an additional thousand people to try and sell them to their customers.
  • 00:43 He thinks there's real upside,
  • 00:44 as does, by the way, the analysts from JP Morgan who say that forward guidance in terms of revenues
  • 00:50 and margins, those could be raised going forward on the back of what they're seeing at Salesforce.