Salesforce Q2 FY2024 Earnings Report Sparks 6% Surge in Share Value with Strong AI Performance
In Brief
Salesforce reported second-quarter revenue of $8.6 billion on Wednesday, up 11% year-over-year.
The company’s shares rallied 6% in after-hours trading on Wednesday after posting its earnings report.
Salesforce CEO Marc Benioff said that subscriptions to the company’s AI products helped drive its revenue growth.
Salesforce shares saw a 6% boost in after-hours trading on Wednesday following the release of its Q2 Fiscal 2024 earnings report.
In the reported Q2 period ending July 31, 2023, Salesforce’s generated a revenue of $8.6 billion. This reflects a 11% year-on-year growth that surpassed analysts’ expectations of 10%. The company’s net income increased to $1.27 billion, equivalent to $1.28 per share, compared to $68 million, or 7 cents per share, in the same quarter of the previous year.
Salesforce Chair and CEO Marc Benioff said the growth was driven by subscriptions to cloud and AI products including Einstein, Data Cloud, MuleSoft, Slack, and Tableau.
The integration of AI-driven solutions, alongside various offerings, has contributed to Salesforce’s strong positioning; as organizations embrace AI to streamline workflow. “We’re leading our customers into the new AI era,” Benioff asserts.
Amy Weaver, President and CFO of Salesforce, reiterated the company’s dedication to driving profitable growth and creating shareholder value. The value of Salesforce shares has increased 62% so far this year.
Financial metrics in the company’s latest earnings report showed cash generated from operations at $0.81 billion, a 142% YoY increase. Free cash flow demonstrated substantial growth of 379% YoY, totaling $0.63 billion.
Salesforce’s forward momentum is also reflected in its remaining performance obligation, representing contracted revenue that is yet to be recognized as earned income.
This amount reached a substantial $46.6 billion by the end of Q2, reflecting a 12% YoY growth. The remaining performance obligation stood at $24.1 billion, a 12% YoY increase.
Salesforce’s New AI Products
In the summer of 2023, Salesforce released a suite of products to help enterprises automate workflow and tech stacks, as well as streamline data. These include Service GPT, Sales GPT, and the Einstein GPT Trust Layer priced at $50 per person monthly.
The AI Cloud Starter pack is available for $360,000 annually. It comprises Data Cloud, MuleSoft automation, Einstein, Tableau Analytics, Slack, CRM, and a free AI-readiness assessment from Salesforce Professional Services.
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About The Author
Cindy is a journalist at Metaverse Post, covering topics related to web3, NFT, metaverse and AI, with a focus on interviews with Web3 industry players. She has spoken to over 30 C-level execs and counting, bringing their valuable insights to readers. Originally from Singapore, Cindy is now based in Tbilisi, Georgia. She holds a Bachelor's degree in Communications & Media Studies from the University of South Australia and has a decade of experience in journalism and writing. Get in touch with her via [email protected] with press pitches, announcements and interview opportunities.
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Cindy is a journalist at Metaverse Post, covering topics related to web3, NFT, metaverse and AI, with a focus on interviews with Web3 industry players. She has spoken to over 30 C-level execs and counting, bringing their valuable insights to readers. Originally from Singapore, Cindy is now based in Tbilisi, Georgia. She holds a Bachelor's degree in Communications & Media Studies from the University of South Australia and has a decade of experience in journalism and writing. Get in touch with her via [email protected] with press pitches, announcements and interview opportunities.
