Salesforce CEO Marc Benioff Says 'AI Makes Every Entrepreneur A Super Entrepreneur' — SMBs, Mid-Markets Now A Strategic Priority - Salesforce (NYSE:CRM)

Enterprise cloud solutions provider, Salesforce Inc. CRM, is turning its focus toward small and medium-sized businesses, alongside middle-market companies, as artificial intelligence reshapes how businesses adopt enterprise technologies.

CRM is encountering selling pressure. See what is driving the move here.

Turns Entrepreneurs Into Super Entrepreneurs

During the company’s second-quarter earnings call on Wednesday, Salesforce CEO Marc Benioff said that AI was accelerating growth across segments that were once seen as underserved.

He noted that demand from smaller companies is expanding faster than ever, fueled by Salesforce's AI-powered AgentForce platform and Slack integration.

The reason behind this, Benioff says, is that AI turns “entrepreneurs into super entrepreneurs” while making SMBs look more like “middle-market businesses.” He says, that while Fortune 500 remains core for the company, small and mid-market is becoming equally strategic.

“We're extremely strong in SMB,” he says, adding that AI is lowering barriers for firms that lack CIOs or large IT teams. “They need prepackaged software… We are their software hyperscaler.”

Chief Revenue Officer Miguel Milano described the company's execution shift, pointing out that Salesforce added 20% more account executives year over year, with greater emphasis on the lower end of the market.

“We are investing significantly more in the mid and low end of the market than we're investing in the high end,” Milano said. He added that these customers are buying faster, with shorter sales cycles.

Stock Plunges Despite Strong Q2 Performance

The company released its second quarter results on Wednesday, reporting $10.24 billion in revenue, up 9.77% year-over-year, and ahead of consensus estimates at $10.14 billion. Earnings during the quarter stood at $2.91 per share, beating estimates of $2.78.

Salesforce shares were up 1.42% on Wednesday, closing at $256.45, but it has since dropped 6.59% in pre-market trade, following its earnings announcement. The stock scores high on Growth in Benzinga’s Edge Stock Rankings, but has an unfavorable price trend in the short, medium and long terms. Click here for deeper insights into the stock.