Salesforce Shares Plunge 17% On First Revenue Miss Since 2006 (cnbc.com) 27
Salesforce shares dropped as much as 17% in extended trading due to weaker-than-expected revenue and guidance that fell short of Wall Street expectations. "Revenue in the fiscal first quarter, which ended April 30, increased 11% from $8.25 billion a year earlier," reports CNBC. "It's the first time since 2006 that Salesforce fell short on revenue, according to LSEG data." From the report: Salesforce called for adjusted earnings per share in the current quarter of $2.34 to $2.36 on $9.2 billion to $9.25 billion in revenue. Analysts surveyed by LSEG had expected $2.40 in adjusted earnings per share on $9.37 billion in revenue. [...] Salesforce saw budget scrutiny and longer deal cycles than usual during the quarter, president and operating chief Brian Millham told analysts on a conference call. Management implemented go-to-market changes that cut into bookings, Millham said.
All five of Salesforce's product areas contributed to the growth. But revenue from the Professional Services and Other category, at $548 million, was down 9% and under the StreetAccount consensus of $572.9 million. Net income jumped to $1.53 billion, or $1.56 per share, from $199 million, or 20 cents per share a year ago.
All five of Salesforce's product areas contributed to the growth. But revenue from the Professional Services and Other category, at $548 million, was down 9% and under the StreetAccount consensus of $572.9 million. Net income jumped to $1.53 billion, or $1.56 per share, from $199 million, or 20 cents per share a year ago.
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Re:Slack backlash? (Score:5, Insightful)
We've completely disconnected the stock market from the actual value of companies let alone the work that makes those companies profitable.
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It's herd behavior. Stockborkers are the worst herd animals on the planet, and the automatically programmed trading systems only amplify their effect. One sees the report that says they didn't meet earnings and says, "Oh, no! Dump it!" Five hundred others see the same thing and follow suit, now the trading system sees a sell off and starts dumping the stock. One trader in Chile made an error on a form, moved a decimal point, and the resulting panic evaporated 10% of the value of the entire Chilean stoc
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a powerhouse and somewhat of a monopoly in their field. I doubt they are going anywhere anytime soon.
Powerhouse they may be, but They will still be in deep shit the day someone feeds their AI a question and it exposes another firm's private or proprietary information.
CRMs used for sales opportunities can contain a lot of secret information.. Info capable of giving a competitor a massive advantage of a bid and costing billions, etc
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It wasn't for a generative model, it was for some bullshit which never was worth the controversy. "non-generative AI/ML models for features such as emoji and channel recommendations", presumably mostly the latter, they want to be social media.
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I expressed myself poorly, when I said it was never worth the controversy I meant it was never worth the controversy to Salesforce. Even if they mine it for some marketing bullshit, it's peanuts.
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You should start with something else (Score:2)
Like explaining WTF Salesforce is, and why the hell it should be relevant that their shares lose value.
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Salesforce is a powerful but bad tool for creating sales force coordination and automation tools. It's powerful because it lets you script, and it's bad because it's a hodgepodge of various bits and pieces with little coordination between them and significant redundancy, but you can't abandon all of the old bits because there's a few things you can't do with only the new ones. They provide both the tool (which is essentially a tarted up CMS, I've worked out how to do about 90% of it with Drupal) and the hos
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So, essentially, it's like a marriage. Easy to get it, but getting out costs you an arm and a leg and you can be almost certain that a lot of your stuff will go missing.
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No, seriously (Score:2)
It's what gives a sale its power. It's an energy field created by all marketers. It surrounds us and penetrates us, it binds the galaxy together.
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It's what gives sales its power?
It must be destroyed from orbit. The only way to be certain.
Weird (Score:2)
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You say that like it's a bad thing.
Oh, that (Score:2)
That's just a little pain around the eyes and temples. I have a good feeling about this.
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Well, maybe at some point in the past decade your personal data was leaked and or stolen by a major corporation, and you were wondering to yourself: "But who is creating the market for all this stolen personal data in the first place?"
Salesforce. And they have a monopoly on it.
PHB solution: (Score:1)
"No problem, just keep adding AI until shares go up."
Nice to hear some good news for once (Score:2)
A good start (Score:2)
Can we double that next quarter?