Salesforce, Workday Rack Up AI Contracts by Blending Subscription Fees With Usage-Based Pricing
Salesforce and Workday are successfully monetizing AI by combining traditional per-user subscription fees with usage-based and outcome-based pricing. Salesforce's Agentforce platform surpassed $1.5 billion in annual recurring revenue, up more than 240% year over year, while combined Agentforce and Data 360 ARR reached about $3.9 billion. The company added 2,000 paying Agentforce customers in the quarter and saw its stock surge 22.6% after reporting revenue of $11.35 billion. Workday reported AI products contributed more than $100 million in new annual contract value, over 25% of total new ACV, with AI ARR reaching roughly $600 million. Both CEOs emphasized that hybrid pricing models are broadening their ability to close large contracts, though Workday noted usage-based revenue may take months or a year to fully materialize.
Comments