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Mar 13 2023, 07:00 GMT
Disruptive technology
Week 9 – US Bellwether Blast: Salesforce’s Q423 earnings
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DAVY VIEW
Salesforce (CRM) faces a difficult trade off: revenue versus profit. The Einstein GPT collaboration with OpenAI is a step into generative AI, an innovative addition to the product, and the potential efficiency gains to Sales and Marketing functions are significant. However, CRM CEO Marc Benioff is up against five activist investors who want margin; CRM’s FY23 0.7% net income margin is very low for SaaS. CRM has been dragged into the ‘year of efficiency’, but the activists want more – control and margin expansion.
