Salesforce’s fiscal 2024 second-quarter results showcase its focus on artificial intelligence (AI) innovation and its transformation to profitable growth.
The customer relationship management (CRM) company sees AI as essential for improving productivity, driving efficiency and enhancing customer experiences, Salesforce Chair, CEO and Co-Founder Mark Benioff said Wednesday (Aug. 30) during the company’s quarterly earnings call.
The company aims to become the “No. 1 AI CRM,” leveraging AI to provide customers with enhanced productivity, automation and analytics, executives said during the call.
“Salesforce is the No. 1 CRM by market share based on the latest IDC Software Tracker, and now we are working hard to be the No. 1 AI CRM,” Benioff said. “Our transformation drove our second quarter results.”
In its pursuit of that goal, Salesforce has been pioneering AI in its products, particularly predictive and generative AI, executives said. The company’s AI-powered assistant, Einstein, has been a success, delivering targeted customer engagement and personalized experiences.
Salesforce’s commitment to AI has propelled it to become the third-largest enterprise software company by revenue in the world, executives said. Its AI + Data + CRM platform has been instrumental in this growth, providing customers with a single source of truth for all their data through the data cloud integrated with the core platform.
Benioff also highlighted the company’s accelerated transformation to profitable growth. Salesforce has undergone restructuring, reignited its performance culture, prioritized core innovations and built stronger relationships with investors as part of its transformation strategy.
Salesforce’s second-quarter results were driven by this transformation, Benioff said. The company reported revenue of $8.6 billion, representing an 11% year-over-year (YoY) increase. Additionally, Salesforce’s non-GAAP operating margin rose to 31.6%. Operating cash flow for the quarter reached $808 million, marking 142% YoY growth.
The company’s fiscal 2024 revenue guidance has been raised to $34.7 to $34.8 billion, projecting about 11% growth YoY. Salesforce has raised its non-GAAP operating margin guidance to 30%.
“It’s kind of amazing but, yes, we are saying that we are going to deliver 30% margin for this year,” Benioff said during the call. “That’s an incredible goal. So while we thought we were going to do it next year, we’re really going to do it this year.”
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