Salesforce Q1 FY25 Earnings: Lowered Revenue Guidance Creates Leverage for Customers

Insights for IT Negotiations

Salesforce’s Q1 FY25 total revenue came in at $9.13B, representing an 11% growth year-over-year. This was on the lower end of their guided range and came up short of the analyst expected $9.17B. Salesforce now expects their FY25 subscription and support revenue growth to come in slightly below 10% (Salesforce’s better way of saying single digit). Elongated deal cycles, deal compression, and high levels of budget scrutiny have been cited as the driving factors to the slowed growth. It is clear from the earnings call that Salesforce, and the Salesforce account executives, need to turn things around; your Saleforce reps will be focused on getting customers to adopt Data Cloud and their GenAI offering, Einstein Copilot. They will also be leaning on price and packaging changes to drive revenue growth as well. In this podcast, Salesforce Practice Leader, Adam Mansfield, discusses what Salesforce’s earnings mean for customers and what customers should expect from Salesforce as they push through their upcoming negotiations, whether in term or at renewal. In addition, Adam provides his perspective on how best to prepare for Salesforce’s aggressive push to upsell and cross sell their current customers. Host: Adam Mansfield: https://bit.ly/3rPGp8r SalesForce Commercial Advisory Services: https://bit.ly/2V78ADX