Salesforce reported an 11% increase in quarterly revenue, its slowest growth in 13 years. Despite the slowdown, the business software provider exceeded Wall Street's earnings and revenue estimates and raised its earnings outlook and margin targets for the year. - Salesforce's revenue for the quarter ending April 30 was $8.25B from $7.41B a year ago, slightly beating analysts' expectations.
- It forecasts revenue of $8.51B to $8.53B for the upcoming quarter, reflecting a growth rate of 10% compared to the same period last year.
- Although its shares have rallied 68% this year, the company has faced challenges including job cuts, executive departures, and pressure from activist investors.
- During the earnings call, CEO Marc Benioff highlighted the company's cost management and careful spending in response to the shareholder pressure.
- The company has been investing significantly in generative AI tools, he said, contributing to a 36% increase in capital expenditures year-over-year.
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