Salesforce is scheduled to report second-quarter results Wednesday after the market closes. Here is what you need to know.
EARNINGS: The software-as-a-service company is expected to post earnings per share of $1.79, compared with $1.96 a year before, according to FactSet.
ADJUSTED EARNINGS: Stripping out certain one-time items, earnings are expected to come in at $3.27 a share, compared with $2.91 a share the prior year.
REVENUE: The company is expected to report $11.33 billion in revenue, compared with $10.24 billion in the year-ago quarter, according to FactSet.
The stock has gained 15% in the past three months and recently traded around $206.41.
WHAT TO WATCH:
--As investors fret over whether artificial intelligence could upend the software-as-a-service industry, Salesforce has been doubling down on its own AI tools. Annual recurring revenue for the company's Agentforce and Data 360 offerings more than tripled in the first quarter, and Truist analysts expect the Agentforce growth to continue through the year "albeit with the potential for quarter-to-quarter lumpiness," they said.
--However, Oppenheimer analysts note that while Salesforce's customers and partners are increasingly aware of Agentforce-and usage from early adopters is growing--fewer are actually doing fully-scaled deployments of the technology. Customers are likely shifting from a testing phase to deciding whether to actually commit to the technology, which is increasing Agentforce deal size but slowing down Agentforce customers ramping deployments to scaled production levels, the analysts said.
--Another key area of focus for investors is whether Salesforce's organic growth can reaccelerate. Deutsche Bank analysts said that while they expect the company's management to continue to express confidence in an acceleration in the second half of the year, an in-line second-quarter report likely wouldn't settle broader debates around organic growth.
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