Salesforce, a leading business software maker, recently reported strong fiscal second-quarter results that surpassed estimates, leading to a 4% increase in the company’s shares during extended trading. The company exceeded expectations on both earnings per share, reporting $2.56 adjusted compared to $2.36 expected, and revenue, generating $9.33 billion versus $9.23 billion predicted by LSEG consensus.
In conjunction with its earnings release, Salesforce announced that Amy Weaver, the company’s chief financial officer, will be stepping down from her position. Weaver, who has been with Salesforce since 2013, will continue as CFO until a successor is appointed and will remain with the company as an advisor moving forward. Salesforce’s co-founder, chair, and CEO, Marc Benioff, stated that it was his decision to have Weaver assume the lead financial role after initially joining as general counsel.
Looking ahead, Salesforce raised its full-year profit outlook and provided guidance for the fiscal third quarter and fiscal year 2025. The company anticipates adjusted earnings per share of $2.42 to $2.44 and revenue of $9.31 billion to $9.36 billion for the upcoming quarter. For fiscal 2025, Salesforce expects adjusted earnings of $10.03 to $10.11 per share and revenue between $37.7 billion to $38 billion, indicating growth in the range of 8% to 9%.
During the earnings call, Salesforce highlighted its plans to introduce new technology offerings, including an Einstein Copilot for Merchants designed to assist in creating product pages and promotions using human input. Additionally, the company emphasized its Agentforce artificial intelligence capabilities, positioning them as superior to competitor Microsoft’s offerings. While Benioff praised the accuracy and autonomy of Salesforce’s agents, a Microsoft executive disputed these claims, citing positive feedback from customers and accelerating adoption rates for Microsoft’s AI solutions.
Notably, activist investors Starboard and ValueAct recently increased their positions in Salesforce, signaling confidence in the company’s future prospects. Despite the positive earnings report and leadership changes, Salesforce shares have seen a 2% decrease in 2024, contrasting with the S&P 500 index’s 17% gain. The market response to Salesforce’s performance highlights the importance of ongoing innovation and strategic decision-making in the competitive technology sector.
Salesforce’s strong fiscal second-quarter results, accompanied by the announcement of CFO Amy Weaver’s departure and the company’s optimistic financial outlook, underscore the continued growth and evolution of the business software industry. As Salesforce navigates leadership transitions and advances in technological innovation, investors and industry observers will closely monitor the company’s trajectory in the rapidly changing digital landscape.