Salesforce reports strong earnings as CFO Amy Weaver steps down

Salesforce reported strong fiscal second-quarter results, surpassing earnings estimates with an adjusted earnings per share of $2.56 and revenue of $9.33 billion. This performance led to a raised full-year profit outlook, with the company projecting adjusted fiscal third-quarter earnings between $2.42 and $2.44 per share. The revenue growth of 8% year over year was attributed to an increase in average revenue per user, driven by a shift towards premium products. In a significant leadership change, CFO Amy Weaver announced her decision to step down, although she will remain with the company as an advisor until a successor is appointed. Marc Benioff, Salesforce's co-founder and CEO, expressed that he had initially brought Weaver into the financial role after her tenure as general counsel, highlighting her contributions to the company. The company’s net income rose to $1.43 billion, reflecting a positive trend compared to the previous year. Despite the strong performance, Salesforce shares experienced a slight decline of 2% in 2024, contrasting with a 17% gain in the S&P 500 index during the same period. This indicates a mixed market reaction to the company's results. Benioff also addressed competitive pressures, particularly from Microsoft, criticizing their AI offerings while promoting Salesforce's autonomous agents as superior. This commentary underscores the ongoing competition in the business software market, as companies strive to meet customer expectations in AI capabilities.