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Salesforce Earnings Beat Analyst Expectations
Salesforce reported earnings on Wednesday, and while it wasn’t quite the heady rush of last quarter’s unexpectedly strong offering, it was by all accounts decent. And as far as Wall Street is concerned, the numbers beat analyst’s expectations.
The Numbers Look a Little Mixed
The company’s $8 billion in revenue certainly wasn’t anything to sneeze at. Salesforce grew 11%, down slightly from last quarter’s 14%. Overall, though, the numbers, if anything, look a little mixed with some good news and some not so good: Some parts of the business were growing quite slowly, and perhaps worse, continuing to decelerate.
Data Cloud Was Salesforce’s Fastest Growing Cloud
Perhaps one of the most interesting pieces of data in the financial report was which part of the company’s core offerings was actually the fastest-growing cloud. In fact, it was the newest one: Data Cloud, which launched last year at Dreamforce. It could signal a focus shift where the data exhaust being generated by the Salesforce family of products could become more valuable than the products themselves, at least in terms of new revenue adds.
Generative AI and Salesforce Data
At a recent customer event in New York last month, the company’s main keynote focused almost exclusively on generative AI, and that by using Salesforce data instead of the open internet, you could reduce some of the issues around hallucinations where the model makes things up, as well as data ownership and governance problems.
Conclusion
Salesforce earnings beat analyst expectations, but the numbers are somewhat mixed. However, the newest cloud offering, Data Cloud, was Salesforce’s fastest-growing cloud, which could signify a shift in focus toward the value of data generated by its products. Additionally, the company is exploring the use of generative AI with its data to mitigate ownership and governance issues.
FAQ:
What were Salesforce’s earnings for the quarter?
Salesforce reported $8 billion in revenue with an 11% growth rate.
Which Salesforce cloud was the fastest growing?
The newest cloud offering, Data Cloud, was the fastest growing.
What is Salesforce doing with its data in relation to AI?
Salesforce is exploring the use of generative AI with its data to mitigate ownership and governance issues. By using Salesforce data instead of the open internet, the company believes it can reduce some of the issues around hallucinations where the model makes things up.
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