Salesforce Chairman and co-CEO Marc Benioff discussed widespread “digital transformation” , as well as breaches of trust in the tech industry, in an interview with Jim Cramer on CNBC’s “Mad Money” following the release of record Q1 2020 fiscal results.
“Every customer is going through a massive digital transformation,” Benioff said. “This is as big as Y2K for the tech industry.” Southwest, for example, is transforming the delivery of its HR services with new self-service, chat, and mobile capabilities for more than 60,000 employees.
Cramer called the possibility of new government regulations imposed on the tech industry an “ill-advised war on tech.”
“I’m going to have to disagree with you on this point,” Benioff said. “We are at a point in our industry where enough is enough. We need to get the values straight with these tech companies. There are some things going on regarding the manipulation of consumers, misuse of the data, serious issues with privacy. Those values need to change and some companies need to be held accountable.”
Benioff has previously called for a national privacy law in the U.S. and he reiterated today that America is behind Europe in advancing the legislation to protect consumers and their privacy. While discussing the U.S. government, Benioff added that CEOs he is talking to are very concerned about the trade environment as widespread tariffs are imposed.
Salesforce announced Q1 2020 revenue of $3.74 billion, up 24 percent year-over-year, with operating cash flow of almost $2 billion, up 34 percent year-over-year. “We have a massive opportunity in front of us and are well-positioned for long-term growth as the world’s #1 CRM,” he said.