Salesforce upped full-year guidance for adjusted operating margin profits as it appeases activist investors. Insider previously reported that Salesforce employees are facing heightened performance pressure.
Guidance for the company's adjusted operating margins for its current fiscal year, 2024, has been raised to 28%, CEO Marc Benioff said on Salesforce's first-quarter earnings call Wednesday.in the next two years, a goal Insider reported in February. A group of activist investors, including Elliott Management and Starboard Value, have called on Salesforce to improve its margins beyond 30% as soon as possible. Salesforce has historically prioritized revenue growth over profits.
Both Benioff and chief operating officer Brian Milham touted the company's"performance culture" for driving its results in the first quarter.Some Salesforce employees have chafed at the idea of a"performance culture" at Salesforce, saying that an, combined with the rolling layoffs in the first half of the year, have decimated morale at the company.
Milham stressed that the company is strongly focused on productivity and increasing average order size by bundling products together.
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