Salesforce Shares Rise Ahead of Dreamforce as Investors Eye Agentforce Performance
Salesforce's shares gained over 2% on Monday as investors await the company's annual conference, Dreamforce. The event will provide an opportunity for Salesforce to explain how its Agentforce offering translates into durable customer spending.
Agentforce is a key part of Salesforce's AI business, with annual recurring revenue reaching $1.5 billion ahead of Dreamforce. This figure includes the addition of Slackbot and Headless 360 to the product mix, making comparisons more complex.
The company also reported a significant increase in Agentic Work Units during the quarter, with 3.2 billion units representing a 97% jump from the previous quarter. However, this metric does not directly equate to booked revenue, and investors will be watching for evidence that Agentforce usage translates into paid consumption and renewals.
The discrepancy between Salesforce's current share price and its estimated value has raised questions about potential undervaluation. With shares currently trading 26.23% below the $342.57 GF Value estimate, a strong performance at Dreamforce could help close this gap.