2 min Analytics

Salesforce shares positive second quarter and aims to maintain it through AI

Salesforce shares positive second quarter and aims to maintain it through AI

Salesforce is closing the second quarter with positive results. The company is trying to maintain that by betting on AI and creating a new partnership with IBM.

Salesforce had a positive quarter, with revenue up 11 percent from a year earlier. Sales totalled $8.6 billion. Based on these figures, the company is adjusting its annual expectations and expects to generate annual revenue of $34.8 billion. If that is achieved, Salesforce’s annual revenue would also have increased 11 percent.

‘Price changes had no impact’

According to the company, recent price hikes, which were implemented across much of Salesforce’s offerings, had no impact on these quarterly figures. This expectation prevailed among stock market analysts when the price increases were announced.

The CRM specialist does indicate that it will see consequences in the future. In a meeting with analysts, Brian Millham, president and COO of Salesforce, said: “We will see the impact of our price increase really hit the customer base over the next one to two to three years.” It remains to be seen if the concerned experts are proven right, and Salesforce thus loses customers to the competition.

Also read: Price increases destroy Salesforce’s already poor foundation

Partnership with IBM

At least Salesforce seems to be keeping its focus on AI. The company also announced yesterday a partnership with IBM to bring Salesforce’s AI tools to customers of both companies.

For its part, IBM says it will contribute to the collaboration by sharing knowledge of AI experts and coming up with innovative solutions for making Salesforce’s AI tools available to its customers. Furthermore, the tech giant expects to target customers of the CRM specialist with Data Classifier and its AI platform aimed at businesses: WatsonX.

Also read: IBM marries AI platform with as much data as possible: what’s Watsonx?