"You've heard about the SaaSpocalypse? And it isn't our first. We've had a few of them. If there is a SaaSpocalypse, it may be eaten by the Sasquatch because there are a lot of companies using a lot of SaaS because it just got better with agents."
"Salesforce reported a solid quarter of $10.7 billion in revenue, up 13% year-over-year. For the year, it reported $41.5 billion in revenue, up 10% over the previous year, with both results boosted by its $8 billion acquisition of data management company Informatica last May."
"Software-as-a-service stocks, with Salesforce as their poster child, have been getting hammered lately. Investors fear the rise of AI agents will undermine these companies, making their per-employee-seat business models obsolete."
Salesforce delivered solid fourth-quarter results with $10.7 billion in revenue, up 13% year-over-year, and full-year revenue of $41.5 billion, up 10%. The company projects 2025 revenue between $45.8 billion and $46.2 billion, representing 10-11% growth. Net income reached $7.46 billion, with remaining performance obligations exceeding $72 billion. Despite strong financial performance, SaaS stocks face investor concerns about AI agents potentially obsoleting per-employee-seat business models, a phenomenon termed "Saaspocalypse." CEO Marc Benioff directly addressed these fears during the earnings call, emphasizing that AI agents actually enhance SaaS value. Salesforce reinforced investor confidence by increasing its dividend by nearly 6% to $0.44 per share and launching a $50 billion share buyback program.
Read at TechCrunch
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