Salesforce Faces Key Test on September 16 as it Touts New AI Pricing Model

Salesforce will hold an Investor and Analyst Session at Dreamforce on September 16, where it must answer the question left open by its blowout quarter in August. The company beat both revenue and earnings estimates for the second consecutive quarter and raised full-year guidance.

The revenue rose 10.83% year over year to $11.345 billion, with current remaining performance obligation growing 14% in constant currency to $33.5 billion. However, the headline EPS was flattered by a gain on strategic investments, which made up $2.53 of the $5.90 adjusted EPS.

Salesforce has rebuilt its pricing model and now charges based on outcome-based pricing, where services are billed by resolutions rather than seats. The company claims that if agents retire human seats, it will bill for the work those agents do instead.