Fourth-quarter subscription and support revenue was up 14% year on year to $7.8 billion, while professional services and other revenue totaled $600 million, an increase of 19%. The results helped boost Salesforce’s total revenue for financial year 2023 to $31.4 billion, a year-on-year increase of 18%.
Despite the revenue gains, Salesforce posted a fourth-quarter loss of $98 million, compared with a loss of $28 million in the same quarter last year, due mainly to restructuring costs that included layoff-related expenses.
The previous 90 days haven’t been smooth sailing for Salesforce. During the quarter, the company cut around 10% of its workforce, shut numerous offices, and co-CEO Bret Taylor and Slack CEO Stuart Butterfield both announced in the same week that they would be stepping away from the company.
Like many other tech companies, Salesforce blamed the need for layoffs on a hiring spree during the pandemic — when the need to go remote spurred corporate demand for cloud services and collaboration software — that was followed by weakening demand last year as a result of macroeconomic issues including inflation and supply chain disruptions.
Salesforce touts soon-to-be-launched EinsteinGPT
Looking ahead, Benioff said that Salesforce’s upcoming EinsteinGPT offering will soon integrate with all Salesforce cloud products, including those from its Tableau, MuleSoft and Slack subsidiaries. He added that EinsteinGPT, which Salesforce is set to unveil next week, will complement the company’s Einstein AI technology, which offers predictive analytics and allows for voice control of software, and which has already been incorporated into products including Tableau.
The growth of AI as well as the internet of things (IoT) presents an opportunity for other Salesforce products, Benioff said.
