Goldman Sachs analyst Kash Rangan maintained a Buy rating on Salesforce, Inc
Rangan hosted Salesforce's CEO and Co-founder Marc Benioff as part of their Communacopia & Technology Conference 2024.
Their discussion focused on autonomous artificial intelligence agent Agentforce as a value-driving force, Salesforce's annual event Dreamforce, and Agentforce alongside AI assistant Einstein.
Management notes that Agentforce essentially drives the next step of Salesforce's evolution. The platform's underlying AI model can read across the data set, resolve over 90% of customer issues, and deliver 90%-95% accuracy with minimal hallucinations despite being at the early stages.
This is notably higher than initial data points from peers, which indicates its data strength and ability to leverage data in a value-accretive way for customers, Rangan flagged.
Further, for one of its deployed customers, management notes that Agentforce has delivered twice the quality of comparable AI platforms, the analyst noted. Management discussed this ability to drive higher-end use spend and improve customers' unit economics as they unlock the additional value of data today, he added.
Agentforce will likely be the focal point of Salesforce's user conference, Dreamforce, next week, Rangan noted. Management suggested it will showcase its expanding capabilities for the first time.
While expected to be available by the end of the year, Dreamforce is likely to drive customer awareness and pipeline build, Rangan noted.
Post fiscal second-quarter 2025 and ahead of Dreamforce, management emphasized how Agentforce will be the cornerstone of their strategy in the future.
Management highlights Agentforce as the latest AI-driven platform offering to enhance customer value, complementary to Salesforce's Einstein GPT and Data Cloud.
Salesforce sees this augmenting an overwhelmed human workforce and expects to have agents for specific companies and their customers - even beyond traditional use cases.
Rangan projected fiscal 2025 revenue of $37.89 billion and adjusted EPS of $10.24.
Price Action: CRM stock is up 1.50% at $253.32 at the last check on Thursday.
