Photo Credit: City of Indianapolis | Mayor’s Office /Flickr.com
 

Salesforce (NYSE: CRM) recently announced its second-quarter results that continued to surpass market expectations. Its growth rate has slowed down, but the market remains impressed with it as it continues to invest in emerging technologies.
 

Salesforce’s Financials

Salesforce’s revenues for the second quarter grew 11% to $8.6 billion, above analyst estimates of $8.53 billion. Adjusted earnings of $2.12 per share were also better than the market’s forecast of $1.90 per share.

By segment, Subscription and support revenues grew 12% to $8.01 billion. Professional services and other revenues grew 3% to $600 million.

For the third quarter, Salesforce forecast revenues of $8.7-$8.72 billion and an EPS of $2.05-$2.06. The market was looking for $8.66 billion and an EPS of $1.83. Salesforce expects to end the current fiscal with revenues of $34.7-$34.8 billion and an EPS of $8.04-$8.06. The market was looking for revenues of $34.65 billion and an EPS of $7.45.
 

Salesforce’s Expanding AI Partnerships

Recently, Salesforce announced its partnership with Deloitte which will provide businesses the tools to deploy AI for CRM. As a part of the partnership, Deloitte will offer AI services, industry experience, and knowledge of data protection regulations to help organizations implement and scale AI Cloud. Customers will have access to research-backed trust framework to prepare for the deployment of AI for CRM, Deloitte Digital AI readiness labs to explore the potential of generative AI and accelerate the adoption of the AI Cloud, and AI Cloud built specifically for CRM, improving productivity by combining AI, data, analytics and automation to provide trusted, open, and enterprise-ready real-time generative AI.

It also entered into an agreement with IBM to help businesses accelerate their adoption of AI for CRM. Together, the two companies will support clients to focus on improving customer, partner, and employee experiences, while helping safeguard their data. IBM Consulting and Salesforce are working with shared clients to help accelerate business transformations with generative AI. The two will help their shared clients effectively deploy Salesforce’s generative AI tools, which will be complemented with IBM’s Watsonx, an enterprise-ready AI and data platform.

Meanwhile, Salesforce’s stock is trading at $218.69 with a market capitalization of $215.63 billion. It had touched a 52-week high of $238.22 in July. The stock fell to a 52-week low of $126.34 in December last year.

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