BNP highlights bullish takeaways on agentic AI, growth in meetings with Salesforce, Workday, Snowflake
View original at seekingalpha.comBNP highlights bullish takeaways on agentic AI, growth in meetings with Salesforce, Workday, Snowflake [Humans are using laptops and computers to interact with AI, helping them create, code, train AI, or analyze big data with fast, cutting-edge technology.] BNP Paribas highlighted key takeaways, including agentic AI, g…
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Salesforce benefits from customer data and metadata context, resulting in better and more accurate outcomes for agentic AI
60% confidenceSalesforce's marketing business will stabilize with new product functionality ramping, but Commerce is taking longer to demonstrate improvements due to competitive pressures and competing for R&D resources with AI areas
60% confidenceLLM costs will weigh on gross margins, but Salesforce can secure volume discounts and expects costs per token to decline over time
60% confidenceAI is an opportunity to increase accessibility of technologies to more business users by putting tools such as CoCo in people's hands
60% confidenceMarketing business will stabilize with new product functionality ramping, but Commerce taking longer to improve due to competitive pressures and R&D resource allocation to AI
60% confidenceCustomers are finding value in using Snowflake's own coding tool for data operations because it is better at identifying patterns and context within Snowflake data while benefiting from Snowflake security and governance controls
60% confidenceSnowflake is committed to maintaining product gross margins at 75% this year despite AI product gross margin headwinds
60% confidenceRevenue growth acceleration expected in H2, potentially as early as Q3
60% confidenceCompany has not seen any mass piping of data out of Salesforce
60% confidenceMargin targets may be lowered as company focuses on accelerating top-line growth and ensuring product portfolio relevance in agentic AI world
60% confidenceWorkday is returning to an organic product focus with a goal of delivering revenue growth acceleration, potentially resulting in improved Bookings growth in H2 FY'27 and revenue growth acceleration in FY'28
60% confidenceLLM providers appear more focused on disrupting applications market than entering data platform market
60% confidenceSome customers already replacing third-party point solution functionality by running workflows directly in Snowflake
60% confidenceAI native is likely less than 2% of revenues but may have already helped drive the beat in Q4
60% confidenceSnowflake is a key beneficiary of AI, which can help drive acceleration in demand for core platform and provides opportunities to extend use cases and reach through development simplification
60% confidenceIntegrated data model across HCM and Finance provides advantage as company increasingly sells the full suite
60% confidenceAI native revenues are likely less than 2% of total revenues but may have already helped drive the Q4 beat
60% confidenceSalesforce is doing all of the right things, but the share price will not likely react until Salesforce can 1) demonstrate stability in its core business and 2) demonstrate continued success and adoption of Agentforce along with Data Cloud
60% confidenceCompetition from Databricks is not new, and competitive fears appear to have died down from their peak a couple of years ago
60% confidenceData Cloud offering expected to ramp in second half, charged on consumption basis based on data amount
60% confidenceSalesforce has not seen any mass piping of data out of Salesforce to date
60% confidenceCustomers are finding value in using Snowflake's own coding tool for data operations because it is better at identifying patterns and context within Snowflake data while benefiting from security and governance controls
60% confidenceLLM companies appear more focused on disrupting the applications market rather than entering data platform market
60% confidenceMarketing business will stabilize with new product functionality ramping, but Commerce taking longer to demonstrate improvements due to competitive pressures and R&D resource allocation
60% confidenceWorkday used to generate 60% of growth through existing customer base and 40% through new customers, but new customer growth has slowed in SLED, Healthcare, and retail sectors
60% confidence27 years of operational CRM data embedded within systems of record provides advantage versus new competitors
60% confidenceWorkday is returning to organic product focus with goal of delivering revenue growth acceleration, potentially improving Bookings growth in H2 FY'27 and revenue growth acceleration in FY'28
60% confidenceSome customers already replacing third-party point solution application functionality by running workflows directly in Snowflake
60% confidenceWorkday Data Cloud offering is expected to ramp up in the second half and will be charged on consumption basis based on amount of data
60% confidenceIf successful with new initiatives, second-half bookings should show improvement, potentially leading to revenue growth inflection in FY2027
60% confidence
Data points we hold from this source
| Snowflake Inc. · gross margin target | 75 percent |