Price rises yet to hit customers, says Salesforce as it raises forecasts

Salesforce has posted upbeat results and raised its forecasts for revenue, operating margin, and operating cash flow for next year. But price rises announced earlier this year are yet to affect customers, the CRM giant said. For its Q2 2024 results, the SaaS vendor reported revenue of $8.60 billion, up 11 percent year-on-year …

[Flak]

The goose and the golden egg

Price inelasticity for certain SaaS services exists for current customers, as it can be devilishly difficult and extraordinarily expensive to move from one platform to another.

Not so for new new customers who will vote with their wallets.

I wonder what the net result will be. Salesforce won't know for a while, because it takes some time to see and measure the outcome. The investors clearly think this is the right strategy. I am not so sure.

[Anonymous Coward]

Re: The goose and the golden egg

The "not knowing" part seems to also imply that t bh e 10% might not of been enough.

[Pascal Monett]

"a big growth opportunity to drive more value for our customers"

Drive more value ?

You mean extort more money.

Hey, customer, this cloud thing is dandy isn't it ? Be a shame if you couldn't take more advantage of it. So, how about doubling your budget ? You're sure to see a lot of benefit, trust me. What's that ? You can't double your budget ? But, it's The Cloud^TM ! Surely you see that using The Cloud^TM improves your business, right ? So have some more.

[Anonymous Coward]

Maybe they should also look into cloud global footprint

They're losing deals because they cannot guarantee data security sovereignty in various parts of the world.

CRM is a sensitive business: you're having all kinds of customers, from the john does to mister VIP.

If your SFDC cloud is not physically located in the country of your CRM customer, that's often a deal breaker.

So it's not only about fancy powerpoint-friendly AI/ML use cases. It's also about IT expertise.

Just saying...

[CowHorseFrog]

As always the root cause of this problem is bullshit. Sales persons are nothing more than people talking bullshit. The companies using Salesforce are paying people to lie and bullshit to customers, and guess what SF does the same thing back to you.