Salesforce is set to announce its second-quarter results for fiscal 2024 after the market closes on Wednesday. Here are the key details you need to know:
According to FactSet, the business-software provider is projected to report revenue of $8.53 billion, a significant increase from $7.72 billion in the same period last year.
Adjusted Earnings Forecast
FactSet predicts that Salesforce will post adjusted earnings of $1.90 per share, compared to $1.19 per share in the previous year.
Net Income Outlook
Salesforce is expected to record a net income of $773.9 million, a substantial rise from $68 million in the prior-year period, as reported by FactSet.
Important Factors to Monitor
Investors will be looking for any discussion from Salesforce regarding the early impacts of their recent price hikes. The company had previously announced that it would be increasing prices across various products, including Sales Cloud, Service Cloud, Marketing Cloud, Industries, and Tableau. List prices are expected to rise by an average of 9%.
Focus on Artificial Intelligence (AI)
Artificial intelligence remains a top priority for investors in the technology space. Salesforce might discuss the adoption of its new AI technology, specifically designed to assist client companies in safely utilizing generative AI tools like ChatGPT while protecting their proprietary data. This platform, introduced in June, addresses concerns raised by chief information officers and business leaders who want to leverage generative AI without compromising their valuable data for training widely accessible language models.