Salesforce Reveals Latest Customer Wins and Sales Growth Forecast

Salesforce has maintained its fiscal 2025 revenue forecast at $37.7 billion to $38 billion but has revised its operating margin expectations down to 19.9 percent from an earlier forecast of around 20.4 percent.
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For the second quarter, Salesforce predicts revenue of $9.20 billion to $9.25 billion, lower than the previous estimate of $9.37 billion. The company cited expected client spending cuts as a reason for this adjustment.

Analysts note that Salesforce’s projected quarterly revenue growth of 8-9 percent, the slowest in its history, signals a deceleration after years of rapid expansion.

Investment in AI and Customer Engagement

Salesforce has been heavily investing in artificial intelligence (AI) to enhance its product suite and drive revenue and margins.

Marc Benioff, Chair and CEO of Salesforce, emphasized the transformative potential of AI for customer engagement. “We are at the beginning of a massive opportunity for our customers to connect with their customers in a whole new way with AI,” Marc Benioff stated. He highlighted Salesforce’s position as the leading AI CRM provider.

Salesforce COO Brian Millham noted that the company continues to experience prolonged deal cycles and increased budget scrutiny from clients.

First-Quarter Performance and Geographic Insights

Salesforce reported an 11 percent increase in first-quarter revenue, reaching $9.13 billion. Geographically, the Americas saw an 11 percent revenue growth, EMEA grew by 10 percent, and APAC by 14 percent. The company recorded strong new business growth in Japan, India, and Canada, while the U.S., parts of Latin America, and EMEA faced constraints.

From an industry perspective, the public sector and financial services performed well, whereas the high tech and retail and consumer goods sectors were more limited.

Key Wins and Product Integration

Nearly half of Salesforce’s top 50 wins in the quarter included six or more cloud solutions. The data cloud was featured in 25 percent of million-dollar-plus deals, and the company added over a thousand data cloud customers for the second consecutive quarter.

Salesforce has been integrating generative AI capabilities with its Einstein Copilot, prompt builder, and Einstein Studio, closing hundreds of copilot deals.

Notable Customer Implementations

Saks: The luxury fashion retailer went live on Salesforce, using AI to personalize customer interactions through the Einstein 1 platform and data cloud.

FedEx: Enhanced efficiency using Salesforce for automated lead nurturing, workflow management via Slack, and AI-driven content delivery.

Air India: Utilizing data cloud and Einstein for unifying data across various systems, improving customer service and high-value passenger experiences.

CrowdStrike: Expanded use of Salesforce solutions, including data cloud, marketing cloud, commerce cloud, revenue cloud, and MuleSoft, to achieve a 360-degree customer view and drive growth. MuleSoft helped reduce project delivery times by 30 percent and maintenance costs by 20 percent.

Siemens: Developed an AI-powered digital marketplace with Salesforce to simplify the buying experience.

City of Los Angeles: Chose Salesforce to modernize the MyLA311 system, integrating AI to enhance service reliability and responsiveness for the city’s 4 million residents.

Salesforce’s strategic investments and customer-centric innovations aim to sustain its market leadership and adapt to evolving economic conditions.

Baburajan Kizhakedath

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