After Selling power recorded its first revenue shortfall since 2006, CEO Marc Benioff told CNBC’s Jim Cramer how the market for enterprise software companies has changed since the pandemic.
“You can’t control the buying environment. The reality is you’re going to have heterogeneous buying environments, that’s going to happen,” Benioff said. “And we’re in this post-pandemic reality where the buying environment has been, and we’ve been talking about this for a few quarters, very measured for enterprise software companies. Not just a company like Salesforce, but many companies “
Salesforce issued weaker-than-expected guidance and revenue came in at $9.13 billion, less than the $9.17 billion analysts expected, according to LSEG. The company reported earnings after the close on Wednesday and shares fell as much as 16% after hours.
Benioff said that during the pandemic, companies have been “aggressively” purchasing enterprise software. And they have worked to “absorb a lot of the technology that they have integrated” while, at the same time, we are seeing a huge boom in artificial intelligence. He suggested that “these things need to be streamlined for these companies.”
However, Benioff said he’s happy with Salesforce’s cash flow and margins, as well as what its products can do for customers like FedEx and Air India.
“It’s been a complete financial transformation,” Benioff said. “But it’s not just that, it’s also a complete transformation of the product line for customers, giving them this incredible new artificial intelligence capability.”
Register now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.
Disclaimer The CNBC Investing Club Charitable Trust owns shares of Salesforce.
Questions for Cramer?
Call Cramer: 1-800-743-CNBC
Want to dive deep into Cramer’s world? Hit him!
Mad Money Twitter – Jim CramerTwitter -Facebook-Instagram
Questions, comments, suggestions for the “Mad Money” site? madcap@cnbc.com
cnbc
