Salesforce posts slowest quarterly revenue growth since 2010

Salesforce has posted an 11 percent increase in quarterly revenue, its slowest pace of growth in 13 years, as enterprise customers cut IT spending on cloud-based software offerings.
Salesforce revenue growth since 2010Revenue of Salesforce, the # CRM company in the world based on revenue, was $8.25 billion for the quarter ended April 30.

Salesforce has generated revenue of $1.81 billion from Sales Cloud, $1.964 billion from Services Cloud, $1.567 billion from Platforms, $1.17 billion from Marketing and Commerce and $1.131 billion from Data during the quarter.

Salesforce has generated revenue of $5.482 billion from Americas, $1.951 billion from Europe and $814 million from Asia Pacific including China and India.

Marc Benioff, Chair and CEO of Salesforce, said: “We are leading the next major revolution in CRM — infusing trusted, secure generative AI across our entire product portfolio.

“Salesforce’s generative AI ecosystem wields Einstein GPT, Slack GPT, and Tableau GPT, delivering trusted power across our product portfolio. Our Salesforce GPT Trust Layer will shield customer data, enabling productive automation and intelligent enterprise enhancements securely.”

Growth at major cloud players from Microsoft to Amazon.com has come under pressure this year as businesses undertake belt-tightening measures to weather the impact of rising interest rates and a potential economic slowdown, Reuters news report said.

Salesforce has reduced the number of employees to 72,970 in April 2023 as compared with 79,390 in January 2023 and 77,810 in April 2022.

Salesforce Chief Financial Officer Amy Weaver in its earnings report said the company faced continued macroeconomic pressures in the United States and that demand from financial services and technology companies slowed in the quarter.

Capital expenditure jumped nearly 36 percent to $243 million as the company invested in AI-related tools to power its software products.

San Francisco, California-based Salesforce faces stiff competition from deep-pocketed legacy vendors such as Oracle in a crowded cloud-computing market.

Salesforce expects revenue of between $8.51 billion and $8.53 billion for the current quarter, representing growth of about 10 percent from last year.

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