Executives at Salesforce (CRM) talked about the company's ability to supply data for enterprise artificial intelligence (AI) models, the growth of data clouds in response to AI demand, how AI hasn't yet improved the company's bottom line, and its first dividend after the company released its fourth-quarter results for the fiscal year 2024.
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Salesforce Bridges the Information Gap for Business Clients
Enterprise clients of Salesforce can "automatically integrate into [Saleforce's] data cloud, all of those systems, and then seamlessly provide that data back into these amazing tools," according to CEO Marc Benioff.
Even though a lot of businesses would want to use AI tools, training AI models requires a large amount of data. According to Benioff, "This foundation of data is the basis of the entire AI revolution."
He said that "islands of trapped data" in different systems are present in many consumers. However, without the smooth, integrated data experience of data and metadata, AI would not function. Our data cloud is comparable to a rocketship because of this."
Salesforce's data cloud is "deeply integrated" into all of its products and platforms, according to Benioff. "It is self-service for all our customers to turn on," he stated. Our product is growing at the fastest rate ever. For the upcoming fiscal year (2025), that is our exclusive focus.
1. Salesforce provides its enterprise clients with both its Einstein 1 platform and its data cloud services.
2. Profiting from AI-related goods and services for business clients has been a recurring subject for tech companies.
Data Cloud Growth Reflecting AI Demand
Salesforce announced that its data cloud business has grown to about $400 billion, a 90% year-over-year increase. This surge, according to Chief Operating Officer Brian Millham, is "an indicator of the demand that we're seeing for people to get ready for the AI transformation."
The London Stock Exchange and Xerox (XRX) were among the clients mentioned by the business, which claimed that almost 25% of its transactions totaling more than $1 million involved data cloud.
AI Isn't Translating to Revenue Boost, Yet
Although Salesforce sees enormous prospects related to AI, these advantages have not yet translated into better earnings and are not anticipated to do so shortly. AI Isn't Boosting Revenue.
Amy Weaver, chief financial officer, stated that Salesforce is "not factoring in material contribution from these products into our FY 25 revenue guidance at this time." For the fiscal year 2025, the customer relationship management company anticipates single-digit revenue growth.
Initial Dividend plus an Additional $10B for Buybacks
Salesforce declared that it will be paying out its first dividend and adding more money to its continuing share buyback program.
"We are enhancing our capital return strategy reflective of the confidence we have in the future of our business, and our ability to drive long-term cash flow," Weaver stated.
The initial quarterly dividend is forty cents. For its share repurchase program, which has about $18 billion left, Salesforce approved an extra $10 billion.
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