Salesforce reported slower revenue growth for the first quarter of its fiscal year 2024, with the cloud software company’s executives pointing to continued macroeconomic pressures, particularly in North America.
The company’s total revenue during the quarter was $8.2 billion, up 11% compared with a year earlier, according to results released Wednesday. Its revenue during the prior three-month period rose 14%, year-over-year.
“We are seeing some good things, but North America has taken the brunt of the deceleration,” Salesforce CFO Amy Weaver said during an earnings call.
The company saw “strong new business growth” in parts of Europe, the Middle East and Africa during the first quarter, even as it experienced continued pressure in the U.S., according to Weaver. Its revenue growth rate in the Americas was 10% year over year, compared with 17% in the EMEA region, she said.
Brian Millham, Salesforce president and chief operating officer, said cash-strapped customers “continue to scrutinize every deal.”
“We're still operating in an uncertain macro environment,” he said during the earnings call.
Amazon experienced similar revenue growth challenges in its cloud division during the first three months of the year.
“As expected, customers continue to evaluate ways to optimize their cloud spending in response to these tough economic conditions in the first quarter,” Amazon CFO Brian Olsavsky said during an April earnings call.