SAN FRANCISCO - Salesforce (NYSE: NYSE:CRM), a global leader in CRM, has reported a significant increase in the adoption of its Data Cloud platform, with a 130% year-over-year growth in its paid customer base. This surge is attributed to the platform’s ability to deliver personalized and timely customer experiences across its various applications. The second quarter alone saw Data Cloud process over 2.3 quadrillion records, marking a 147% increase from the previous year.
The company has introduced new features aimed at enhancing the customer experience through data and AI. These include the processing of unstructured audio and video content, which constitutes about 90% of customer data, and the ability to extract insights from such content for improved customer service interactions.
Salesforce has also expanded its connectivity ecosystem with new Data Cloud connectors for apps like Square, Stripe, and Meta (NASDAQ:META), among others. This expansion allows organizations to integrate a wider range of data sources to power personalized experiences.
In response to the demand for real-time data, Salesforce has enabled sub-second data processing capabilities, allowing organizations to act upon data instantaneously. This feature supports real-time AI recommendations and automations, facilitating faster decision-making.
To address data governance and security, Salesforce has introduced AI tagging and classification, policy-based governance, customer-managed keys, and Private Connect for Data Cloud. These features aim to manage how data is shared and protected, especially when used in AI applications.
Furthermore, Salesforce has announced the Datablazer community, a platform for IT leaders, developers, and Data Cloud enthusiasts to exchange insights and stay updated on data best practices and trends.
Customers like The Adecco (SIX:ADEN) Group, Air India, and Wyndham Hotels & Resorts have been leveraging Data Cloud to unify data across systems, enhancing their ability to deliver personalized customer experiences.
The new capabilities are set to be available in various stages, with some already generally available and others expected to be released between October 2024 and February 2025.
This news is based on a press release statement from Salesforce.
In other recent news, Salesforce has announced a series of significant developments. The company reported strong second-quarter earnings with earnings per share of $2.56, surpassing the consensus estimate of $2.36 and the previous year's $2.12 figure. Additionally, Salesforce experienced an 8% increase in sales, driven by a 9% rise in subscription and support revenues.
The company also revealed a definitive agreement to acquire Own Company, a data protection and management solutions provider, for $1.9 billion in cash. This strategic move aims to enhance Salesforce's data security and compliance capabilities. The deal is expected to close in the fourth quarter of Salesforce's fiscal year 2025.
Mizuho Securities maintained an Outperform rating on Salesforce's stock, while Deutsche Bank maintained a Buy rating, and CFRA maintained its Strong Buy rating. However, Erste Group downgraded Salesforce's stock from Buy to Hold due to projected slower growth.
Salesforce also announced an expanded partnership with Google (NASDAQ:GOOGL) Cloud to develop Salesforce Agentforce Agents, which will allow for secure collaboration across Salesforce Customer 360 and Google Workspace applications. Lastly, Salesforce's CFO, Amy Weaver, announced her plans to step down in early 2025 but committed to assisting with the search for her successor. These are the recent developments for Salesforce.
InvestingPro Insights
Amidst the rapid growth and technological advancements reported by Salesforce (NYSE: CRM), the company's financial metrics and market sentiment provide a comprehensive picture for investors. According to InvestingPro data, Salesforce boasts an impressive market capitalization of $245.61 billion, reflecting its significant presence in the industry. The company's ability to process vast amounts of data and introduce innovative features is mirrored in its financial performance, with a notable gross profit margin of 76.35% over the last twelve months as of Q2 2025. This margin is indicative of Salesforce's efficient operations and strong pricing power.
InvestingPro Tips highlight that Salesforce has a perfect Piotroski Score of 9, suggesting the company's financial situation is healthy across nine different criteria. This score is particularly relevant for investors looking for companies with strong financial positions. Additionally, Salesforce is recognized as a prominent player in the Software industry, which aligns with its strategic expansions and the introduction of new Data Cloud connectors.
For investors seeking more insights, there are 23 additional InvestingPro Tips available for Salesforce, including management's aggressive share buybacks and analysts' upward earnings revisions for the upcoming period. These tips provide a deeper dive into the company's strategic financial moves and market expectations, which can be found at https://www.investing.com/pro/CRM.
As Salesforce continues to innovate and grow its Data Cloud platform, these financial metrics and expert insights from InvestingPro offer valuable perspectives for both current and potential investors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.