Salesforce's beat fails to convince the market that software can survive AI
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- Salesforce reported Q2 FY2024 revenue of $11.13 billion, up 13.3% YoY and beating the $11.05 billion consensus.
- Salesforce posted adjusted earnings per share of $3.87, exceeding the consensus by $0.76 and representing a 50% YoY increase.
- Agentforce closed 98 new deals in the quarter, lifting its annual recurring revenue to $1.2 billion, a 205% YoY jump from $800 million.
- Agentforce customers include LVMH, Chobani, and the U.S. Air Force, per CEO Marc Benioff.
- Salesforce shares fell 1% in after‑hours trading to about $176, keeping the stock ~33% below its YTD peak and $12 above its 52‑week low.
Why it matters: Enterprise buyers see faster AI‑enabled CRM tools, but Salesforce’s investors risk further dilution as the stock stays below $200 and the company leans on debt‑financed buybacks to prop up price.
