Key Takeaways From Salesforce’s Investor Meeting
<p>RBC Capital analysts provided their key takeaways from <a href='https://financialmodelingprep.com/financial-summary/CRM'>Salesforce, Inc. (NYSE:CRM)</a> investor meeting, noting they came away more positive on the company, as it is working on truly transforming the business and emphasizing profitability.</p>
<p>Salesforce noted “phase one” of the profitability journey is the 30% operating margin target (Q1/25) driven by the RIF and ongoing cost-cutting initiatives. Management also outlined an aspirational “phase two” path to potentially unlocking margins in-line with large-cap software peers, driven by more surgical go-to-market changes, deeper product integration, and more hiring in lower-cost areas (e.g. Hyderabad).</p>
<p>Management acknowledges ongoing changes could lead to some disruption and lower morale, which coupled with macro, are growth headwinds. However, beyond the near-term, the growth drivers are mostly unchanged, including (1) International, where Salesforce is much less penetrated and can improve the GTM by putting more investment into the indirect/reseller channels, (2) Industry Cloud, with now 12 out-of-the-box solutions for specific verticals, which have seen strong performance recently (Industry Cloud has better margins and gross retention).</p>

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