Salesforce Q1 Earnings Preview: Watch For Acceleration In The Data Cloud


  • Salesforce has underperformed the S&P 500 and Nasdaq 100 YTD. The company reported its FY24 earnings where revenue and earnings grew 11% and 50% YoY respectively.
  • The company is seeing strong momentum in its Data Cloud segment as it drives robust innovation by launching Einstein 1 Studio, while building new capabilities for Einstein Copilot.
  • For FY25, the company expects to grow its revenues by 9% YoY, while further improving its margins by 200 basis points to 32.5%.
  • I believe we need to pay attention to the management’s commentary on its cRPO growth, while assessing its progress on accelerating its Data Cloud segment in its Q1 earnings call.
  • Although I am impressed by the company’s innovation pipeline and financial discipline, I will rate the stock a “hold” given its risk-reward as well as uncertainty in genAI revenue timeline.

San Francisco cityscape with Salesforce Tower, California, USA

CanY71/iStock Editorial via Getty Images

Introduction & Investment Thesis

Salesforce (NYSE:CRM) is a customer relationship management (“CRM”) technology provider that has underperformed the S&P 500 and Nasdaq 100 YTD. The company reported its Q4 FY24 earnings in

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