Salesforce Inc provides customer relationship management (CRM) technology that connects companies and customers together worldwide. It has several products meant to increase sales, maximize performance and streamline operations all within hyper-connected cloud and extensive ecosystem. Salesforce offers Software as a Service (SaaS) used for both Business-to-Business (B2B) and Business-to-Consumer (B2C) and are used for sales and services. It can churn through data to provide insights and automation.
“The company offers Agentforce, an agentic layer of the salesforce platform; Data Cloud, a data engine; Industries AI for creating industry-specific AI agents with Agentforce ; Salesforce Starter, a suite of solution for small and medium-size business; Slack, a workplace communication and productivity platform; Tableau, an end-to-end analytics solution for range of enterprise use cases and intelligent analytics with AI models, spot trends, predict outcomes, timely recommendations, and take action from any device; and integration and analytics solutions. It also provides marketing platform; commerce services, which empowers shopping experience across various customer touchpoint; and field service solution that enables companies to connect service agents, dispatchers, and mobile employees through one centralized platform to schedule and dispatch work, as well as track and manage jobs.”
Salesforce is trading lower on a historical P/, P/B, P/S basis. It is trading near its 52-week low. Although some customers are using the company’s artificial intelligence products it remains relatively small. “Data Cloud and AI annual recurring revenue over $1 billion, up more than 120% Y/Y”
Revenue (ttm): 38.59B
Net Income Avi to Common (ttm): 6.21B
Total Cash (mrq): 17.41B
Total Debt (mrq): 12.02B
Dividend of 0.67% with a 25% payout ratio.
Guidance: 8-9% growth in net sales.
Salesforce has made several strategic acquisitions over the years, with cash ready to deploy on new M&As. Operating margins have improved drastically over the past year. The company is lately more interested in profitability rather than sales. There will be meaningful sequential growth in Agentic AI due to the abundance of CRM data, with lots of upsell potential for Salesforce’s business solutions. It has already closed 5000 Agentic Ai deals but those numbers aren’t reflected in its guidance.
*I own shares of CRM*
Devlin Demontigny 