💃 Salesforce 2023Q2 Earnings Predictions🕺

Good morning, Salesforce Nerds! Can Salesforce follow up their Q1 success with a banger Q2 earnings call?

It’s not likely….

Not to say it will be a failure-

Between price increases and the commitment to being an enterprise AI pioneer, there are things for investors to be excited about.

But it’s not all unicorns 🦄 and amusement parks🎢.

Let’s give a prediction and look at Q2 events and how they may impact the August 30th earnings call -

Agenda for today includes

• Salesforce 2023Q2 Earnings Predictions

• Daily Principle

• All the Memes

Salesforce 2023Q2 Earnings Predictions

Today we will discuss-

💃 Predictions 🕺

💃 Q2 Notable Events 🕺

💃 Pros and Cons 🕺

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PREDICTIONS

Q2 will not be the success that Q1 was 🙁.

Even if they hit or exceed their revenue and profit expectations, it doesn’t feel like they have the inertia to convince investors that their growth is sustainable 🤷.

The low hanging fruit has been picked. Activist Investors reignited accountability in a company that had a rare stretch of lack of focus.

If Salesforce misses revenue and/or profit expectations, the bad press will come pouring in. But market confidence literally shifts overnight, meaning it wouldn’t be the end of the world at all.

Besides, Salesforce and Marc now have a track record of recovering from missed expectations 🙌.

One quarter is not going to make or break a company like Salesforce.

One callout - not expecting Marc to volunteer a successor plan on the call….hoping an analyst brings it up 👀.

Q2 NOTABLE EVENTS

And here in lies the problem…

There are simply not enough notable, revenue-generating events to make Q2 a high-tech, high-growth success.

1) AI

Salesforce is putting a ton of eggs 💰 in this basket. It’s bold. It’s for the long-term AND short-term. It’s not profitable, yet…..

AI Cloud, the plethora of GPT’s, the promotion of it all. Salesforce is going all in and is looking to capitalize as soon as possible. A much more aggressive approach than anyone even close to their size.

Enterprise AI solutions is still new and uncharted territory for everyone. Salesforce is taking the lead with the plan to capitalize faster and bigger than everyone else.

But that capitalization is not in 2023Q2….

2) Price “Update”

We wrote about it here, including an analysis on The Street’s perspective.

It’s a high-leverage, low hanging fruit move. Good stuff. But is it enough 🤔?

3) Activist Investors Exiting

Ahhh, this is interesting…

Activist investors play short-term, high-leverage games. They’ve been playing with Salesforce for about 8 months, and they’ve nearly doubled their money, had they entered low and exited high.

And now….they’re leaving 😳. Either reducing their holdings or exiting completely. Does that mean they’ve milked Salesforce for the biggest gains? Or are they liquidating to finance a shiny new opportunity 🪩?

Either way, they don’t see the 2x gains out of Salesforce in the short term sad.

TAKEAWAY

There just doesn’t seem to be enough there to have optimism for the Q2 earnings call.

So, the financials may be underwhelming 🤷.

But, Marc is a prodigious storyteller and he will no doubt bring stories about how Salesforce is changing the world, one quarter at a time 😃.

The short-term view is that Salesforce has done well to recover from a tumultuous 2022 📈.

The long-term view is that Salesforce has picked the low-hanging fruit, and for it’s next act will be a leader in enterprise AI solutions 🤖.

Pieces of both of these views will make their way to the call.

Request - someone please count how many times “AI” is said on the call and let us know!

Daily Principle

and now....Your Daily Memes