Unnamed: 0 int64 | symbol string | quarter int64 | year int64 | date string | company_name string | company_id float64 | text string |
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1,900 | CRM | 4 | 2,025 | 2025-02-26 17:00:00 | Salesforce, Inc. | 122,917 | Michael Spencer: Great. Thanks. Operator, we'll take our last question now please.
Operator: And that question comes from Kash Rangan, Goldman Sachs.
Kash Rangan: Hey, thank you very much. We'll miss you, Brian and Amy. Congratulations Robin. One for you, Marc. There's a lot of talk about how we're moving from model building and training to the inference layer. And also as part of that shift to agentic technology, there's been a lot of debate about the SaaS technology in the business model. Can the SaaS tech stack that you built and pioneered, how does that fit into the agentic world. Is there a risk that SaaS just becomes a project database. It sounds really terrible, but I'm sure you have an opinion, I'd love to hear it. Thank you. |
1,901 | CRM | 4 | 2,025 | 2025-02-26 17:00:00 | Salesforce, Inc. | 122,917 | Marc Benioff: Okay. Well, Kash, I really appreciate that. Look I've heard that Microsoft narrative too. So I watched the podcast you watched, and that's a very interesting idea. And here's how I look at it, which is I believe there is kind of a holy trinity here of AI CRM, which is the apps, the data and the agents. And these three things have to kind of work together. And I kind of put my money where our mouth is when we kind of built it and we delivered it. And you can see the 380,000 conversations that we had as point of evidence here in the last 90 days on our service and with a very high resolution rate of 84%. Now you can go to our, so you can go to help.salesforce.com and you can see that today. Now Microsoft has had Copilot available for, I think, about two years or more than two years and they are I know that they're the reseller of OpenAI and they've invested the kind of repackaged this ChatGPT whatever. But where on their side are they delivering agents? Where in their company have they done this? Where are they at best practice? Because I think that while they can say such a thing, do they have humans and agents working together to create customer success? Are they rebalancing their workforce with humans and agents. I think that it's a very interesting point that, yes, the agentic layer is very important, but it doesn't operate by itself. It operates with data, with a Data Cloud that has to be federated through your company to all your data sources and humans, we're still here. I'm here. I just knocked on the table in case anybody wants to know this is not an agent. And I mean I guess we're not very long. Is that actually going to be a good test? But just know that I am here and you could call me or text me Kash and I'm using those apps too. Like I said, I've got the new Tableau is amazing, the Sales Cloud, the Service Cloud I use. I use all of our products. Slack, I was just on and that idea that our apps and our Data Cloud and our agentic layer all integrated together right now and delivering value |
1,902 | CRM | 4 | 2,025 | 2025-02-26 17:00:00 | Salesforce, Inc. | 122,917 | on and that idea that our apps and our Data Cloud and our agentic layer all integrated together right now and delivering value right now to our number one Customer Zero Salesforce. Wow, here we go. And are other vendors really doing that? Beware of the false agents. Go out there and take a look. Who is really talking about it and who is really delivering. And this is all auto engineering that has to get done to make this really work for a large enterprise like us. And Salesforce has done it. We are the number one AI CRM. We are the leader of the digital labor revolution. You can see it now with over 3,000 paid customers. And as you can see the tens of trillions of transactions that happen in our Data Cloud incredible. So thank you very much for a great fiscal year '25. Thank you to Amy and Brian. It's amazing. And welcome to Robin on to the management team and all of our new executives. Congratulations on their promotions and we're ready for a great fiscal year '26. This is going to be the absolute year of Agentforce. |
1,903 | CRM | 4 | 2,025 | 2025-02-26 17:00:00 | Salesforce, Inc. | 122,917 | Michael Spencer: Thanks, Marc. Thanks, Kash. Thank you, everyone, for joining the call today and we look forward to seeing everyone over the coming weeks.
Operator: Once again that does conclude today's conference. Thank you all for your participation. You may now disconnect. |
1,904 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | Operator: Welcome to Salesforce's Fiscal 2025 Third Quarter Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. [Operator Instructions] I would now like to hand the conference over to your speaker, Mike Spencer, Executive Vice President of Finance and Strategy and Investor Relations. Sir, you may begin.
Michael Spencer: Thanks, Regina. Good afternoon and thanks for joining us today on our Fiscal 2025 Third Quarter Results Conference Call. Our press release, SEC filings, and a replay of today's call can be found on our website. Joining me on the call today is Marc Benioff, Chair and CEO; Amy Weaver, President and Chief Financial Officer; and Brian Millham, President and Chief Operating Officer. As a reminder, our commentary today will include non-GAAP measures. Reconciliations between our GAAP and non-GAAP results and guidance can be found in our earnings materials and press release. Some of our comments today may contain forward-looking statements that are subject to risks, uncertainties, and assumptions, which could change. Should any of these risks materialize or should our assumptions prove to be incorrect, actual company results could differ materially from these forward-looking statements. A description of these risks and uncertainties, and assumptions and other factors that could affect our financial results is included in our SEC filings, including our most recent report on Forms 10-K, 10-Q, and any other SEC filings. Except as required by law, we do not undertake any responsibility to update these forward-looking statements. And with that, let me hand the call over to Marc. |
1,905 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | Marc Benioff: All right. Well, hey, thanks so much, Mike, and I just really appreciate everybody being on the call today. We have so many exciting things to talk about and I hope you all had a great Thanksgiving. We're incredibly excited about these results that we've delivered in the quarter and very strong performance across revenue, operating margin, cRPO, and cash flow. But as I'm sure everybody knows on the quarter, these numbers are not what we're really excited about at Salesforce. And while the quarter numbers are fantastic, the real excitement is really what is hitting with the technology. And I'm really excited to talk to you about that. But before we do, let's do talk about that incredible financial transformation that we've undergone over the last few years. You're going to hear more from Brian and Amy about what we're doing to redefine success, delivering this kind of financial value for our customers, but achieving these incredible results. So this is about so much more than another great quarter. We're really at the edge of a revolutionary transformation. This is really the rise of digital labor. Now for last -- I would say for the last 25 years at Salesforce, and we've been helping companies to manage and share their information and you can see that across our whole product line and whether it's in sales or service or marketing or commerce, whether it's analytics, Slack across the board but now we've really created a whole new market, a new TAM, a TAM that is so much bigger and so much more exciting than the data management market, it's hard to get our head completely around. This is the market for digital labor. And Salesforce has become right out of the gate here, the largest supplier of digital labor and this is just the beginning and it's all powered by these autonomous AI agents. All of you know that. This is fundamentally reshaping how businesses operate. It's fundamentally reshaping how we operate our business and how we think about the industry itself and how you're thinking about the |
1,906 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | reshaping how we operate our business and how we think about the industry itself and how you're thinking about the industry, how we're thinking about Salesforce. And with Salesforce, Agentforce, we're not just imagining this future, we're already delivering it. And you still know that in the last week of the quarter, Agentforce went into production. We delivered 200 deals and our pipeline is incredible for future transactions. We can talk about that with you on the call, but we've never seen anything like it. We don't know how to characterize it. This is really a moment where productivity is no longer tied to workforce growth, but through this intelligent technology that can be scaled without limits. And Agentforce represents this next evolution of Salesforce. This is a platform now, Salesforce is a platform where AI agents work alongside humans in a digital workforce that amplifies and augments human capabilities and delivers with unrivaled speed. And you can see that, I'm going to get into it, you go to help.salesforce.com, you can see we've unleashed that on our entire support organization already. We've created this incredible agentic layer around the whole company. And this is just the beginning of a complete digital transformation for the world. On top of this agentic layer, we'll soon see a robotic layer as well where these agents will manifest into robots. And how all of this is going to change society is only visible today in the movies or in our imaginations, but we can see it unfolding right here through this company Salesforce. And that is what we are really excited about. These agents are not tools, they are becoming collaborators. They're working 24/7 to analyze data, make decisions, take action, and we can all start to picture this enterprise managing millions of customer interactions daily with Agentforce seamlessly resolving issues, processing transactions, anticipating customer needs, freeing up humans to focus on the strategic initiatives and building meaningful relationships. And this is |
1,907 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | customer needs, freeing up humans to focus on the strategic initiatives and building meaningful relationships. And this is going to evolve into customers that we have, whether it could be a large hospital or a large hotel where not only are the agents working 24/7, but robots are also working side-by-side with humans, robots, manifestations of agents, this idea that it's all happening before our eyes and this isn't just some far-off future, it's happening right now. And with Agentforce, we're unleashing this new era of digital labor for every business and every industry. And the implications are just simply profound. For decades, economic growth dependent on expanding the human workforce, it was all about getting more labor, but with labor and with the labor force stagnating globally, Agentforce is unlocking a new path forward. It's a new level of growth for the world and for our GDP and businesses no longer need to choose between scale and efficiency with agents, they can achieve both. And our customers are already experiencing this transformation. Agentforce is deflecting service cases and resolving issues, processing, qualifying leads, helping close more deals, creating optimizing marketing campaigns, all at an unprecedented scale 24/7. We all saw this unfolding at Dreamforce in San Francisco. You were all there, I really appreciate you all coming and being with us. But I think what you saw and what was remarkable was the huge thirst that our customers had for this and how they built more than 10,000 agents in three days. And I think you know that we then unleashed a world tour of that program and we have now built thousands and thousands of more agents in these world tours all over the world, giving our customers the ability to understand and get their hands on the technology and envision, for their own companies, what they're going to do. And now, we're seeing this demand for Agentforce like, as I've said, just became available on October 24th, and we're already seeing this incredible velocity, more than |
1,908 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | like, as I've said, just became available on October 24th, and we're already seeing this incredible velocity, more than 200 Agentforce deals just in Q3. It doesn't mean anything because the pipeline is in the thousands for potential transactions that are coming up in future quarters. So, companies like FedEx, Adecco, Accenture, ACE Hardware, IBM, RBC Wealth Management and many more are now building their digital labor forces on the Salesforce platform with Agentforce. So that is the largest and most important companies in the world across all geographies, across all industries are now building and delivering agents. And Salesforce is unique as we are perhaps one of the only companies at scale in enterprise that is now delivering this globally. We could not be more excited, we could not be more proud of our teams, our technology teams, our engineering teams, our product teams, our marketing teams, and our distribution teams who are getting this to market first. And look we are not only prepared for this agent-based, agent-first future, we're leading it for our customers and ourselves. And as you know, we pride ourselves on being customer zero for all of our products and Agentforce is no exception. We're excited to share that Agentforce is now live on help.salesforce.com. I hope that you've all gone there and checked it out. And you might have also noticed that we have a test going on for our US customers where we put an agent at the front of our website as well to kind of see what that is like. This is an ungrounded agent, but it's really a vision for what the potential of what agents can be doing at every part of marketing, our help portal, help.salesforce.com, which is now live. This portal, this is our primary support mechanism for our customers. It lets them authenticate in, it then becomes grounded with the agent and that help portal already is handling 60 million sessions and more than 2 million support cases every year. Now that is 100% on Agentforce. It's going to have dramatic implications for our |
1,909 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | more than 2 million support cases every year. Now that is 100% on Agentforce. It's going to have dramatic implications for our company from not only the technology point of view, but also from a human resource point of view, where we can really start to look at how are we going to rebalance our headcount into areas that now are fully automated and two, into areas that are critical for us to grow like distribution. I think you've all heard that we're trying to hire 1,000, 2,000 more salespeople because we see not only maximized our productivity of our current Salesforce over the last couple of years, but we just need to grow and expand to reflect this incredible distribution opportunity. It's a once-in-a-lifetime opportunity to really help customers achieve something they could never have done before. And while these legacy chatbots have handled these basic tasks like password resets and other basic mundane things, Agentforce is really unlocking an entirely new level of digital intelligence and operational efficiency at this incredible scale. Now when you use help.salesforce.com, especially as an authenticated user, as I mentioned, you're going to see this incredible level of accuracy and responsiveness and you're going to see remarkably low hallucinogenic performance, whether for solving simple queries or navigating complex service issues, because Agentforce is not just grounded in our Salesforce data and metadata, including the repository of 740,000 documents in 17 languages. It's also grounded in each customer's data, their purchases, returns, that data, it's that 200 petabytes or 200 to 300 petabytes of Salesforce data that we have that gives us this kind of, I would say, almost unfair advantage with Agentforce because our agents are going to be more accurate and the least hallucinogenic of any because they have access to this incredible capability. An Agentforce can instantly reason over this vast amounts of data, deliver precise personalized answers with citations in seconds and Agentforce can seamlessly |
1,910 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | over this vast amounts of data, deliver precise personalized answers with citations in seconds and Agentforce can seamlessly hand off to support engineers delivering them complete summary and recommendation as well. And you can all try this today. This isn't some fantasy land future idea, this is today, reality. And I just want to compare and contrast that against other companies who say they are doing enterprise AI. You can look at even Microsoft. We all know about Copilot. It's been out, it's been touted now for a couple of years. We've heard about Copilot. We've seen the demos. In many ways, it's just repackaged ChatGPT that you can really see the difference where Salesforce now can operate its company on our platform. And I don't think you're going to find that on Microsoft's website, are you? I know many of you are specialists in Microsoft, go ahead and try to find this running on microsoft.com and I will be looking forward to getting your responses. Look, we expect that our own transformation with Agentforce on help.salesforce.com and in many other areas of our company is going to deflect between a quarter and a half of our annual case volume and in optimistic cases, probably much, much more of that. Agentforce is going to deliver the same unprecedented accuracy, speed and cost savings to our customers. Now, when we look at customers that are starting to implement this today, there's a lot of great examples. One of them is the smart home security provider Vivint. They've struggled with this high volume of support calls, a high churn rate for service reps, it's a common story. But now using Agentforce, Vivint is creating a digital support staff to autonomously provide support through their app, their website, troubleshooting, a broad variety of issues across all their customer touch points. And in addition, Vivint is planning to utilize Agentforce to further automate technician scheduling, payment requests, proactive issue resolution, the use of device telemetry because Agentforce is across the entire |
1,911 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | scheduling, payment requests, proactive issue resolution, the use of device telemetry because Agentforce is across the entire Salesforce product line and including Slack. So now, here's another great customer example that's already incredible the work they've already done to get this running and going in their company at Adecco, the world's leading provider of talent solutions, handling 300 million job applications annually, but historically they have just not been able to go through or respond in a timely way, of course, to the vast majority of applications that they're getting. But now the Agentforce can operate at incredible scale sorting through the millions of resumes, 24/7 matching candidates to opportunities proactively pre-qualifying them for recruiters. And in addition, Agentforce can also assist candidates, helping them to refine their resumes, giving them a better chance of qualifying for a role. Now listen, we've been talking on these earnings calls for, I don't know, more than a year, maybe two years, why Salesforce has an unfair advantage in AI. I think we took one earnings call just to talk about the power of data and what the power of data meant for Salesforce. Now you're really seeing that get manifested right into the customer themselves and getting that value. We're not just delivering the philosophy anymore, we're really showing you that, yes, Salesforce is already the largest supplier of enterprise AI in the world, 2 trillion Einstein transactions a week, no one is delivering this level of enterprise AI that we are. But now, we're not just delivering that Einstein transaction, we're delivering these incredible Agentforce capabilities as well. This is a bold leap into the future of work where AI agents with humans unite to transform all of our customer interactions. Another powerful example is a nonprofit, College Possible. College Possible matches eligible students with counselors to help them navigate and become ready for college. And in California, for example, the statewide average stands |
1,912 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | counselors to help them navigate and become ready for college. And in California, for example, the statewide average stands at slightly over one counselor for every 500 students. It just isn't enough. Where are we going to get all that labor? Well, we know whether we're going to get that labor, we're going to get it from Agentforce. This means the vast majority of students are not getting the help they need and now they are going to get the help they need. College Possible creates a virtual counselor built on Agentforce in under a week. They already had all the data, they had the metadata, they already knew the students, they already had all of the capabilities built into their whole Salesforce application. It was just a flip of the switch. I mean, you have to think about that for just a second. We have 135,000 customers and those 135,000 customers have now been endowed with Agentforce. It's in every single one of those implementations today. It's just a switch that needs to get flipped on. And our job is to motivate, to excite, to inspire our customers to turn that switch on right now. And when you look at College Possible, yes, it's very exciting, any college, any high-school student will have access to this college counselor that knows about their goals, their transcripts, all the information on the colleges that can deliver this highly personalized experience for them. But why? It's because all of the work and the data and the capability that College Possible has put in the Salesforce over the years and years that they had it. It's not the week that it took to get them to turn it on. They have done a lot of work. And when you look at those 135,000 customers that we have, they have so much work in the Salesforce to organize and get all that data and workflow ready and now they can just turn those agents on. Now we're working with across all kinds of industries to do so many different and exciting areas. We could go on and on and on. Now, over the last few years, we've really aggressively invested in |
1,913 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | different and exciting areas. We could go on and on and on. Now, over the last few years, we've really aggressively invested in integrating all of our apps on a single core platform with shared services for security, workflow, user interfaces, and more. We've been rewriting all of our acquisitions into that common area. We're really looking at how do we take all of our applications and all of our acquisitions, everything, and deliver it into one consistent platform, we call that more core internally inside the Salesforce. And when you look at that more core initiative, I don't think there's anyone who delivers this comprehensive platform, sales, service, marketing, commerce, analytics, Slack, all of it as one piece of code. And then now deeply integrated in that one piece of code is also our data cloud. That is a key part of our strategy, which continues to have this phenomenal momentum as well to help customers unify and federate with zero-copy data access across all their data and metadata, which is crucial for AI to work. And now that third layer is really opening up for us, which is this agentic layer. We have built this agentic layer that takes advantage of all the investments in Salesforce for our customers and made it in our platform. It's really these three layers. And in these three layers that form a complete AI system for enterprises and really uniquely differentiate Salesforce uniquely differentiate Agentforce from every other AI platform that this is one piece of code. This isn't like three systems, it's not a bunch of different apps all running independently. This is all one piece of code. That's why it works so well, by the way, because it is one platform. And we understand that this extraordinary technology is also requires us to have some kind of extraordinary responsibility. At Salesforce, trust is our number one value, it's never been more critical, especially with this pioneering new technology. We're committed to building Agentforce with accountability and fairness and transparency at the |
1,914 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | this pioneering new technology. We're committed to building Agentforce with accountability and fairness and transparency at the core and we've been focusing on empowering our customers and partners to also navigate this era, equipping them with the tools, skills and education to thrive in an AI-driven economy. You know that because you've heard so many presentations and thoughts on this that we've put together with our team and because we, obviously, this is just our latest moment in AI. So the transformation is not without challenges, jobs are going to evolve, roles are going to shift and businesses will need to adapt. And listen, at Salesforce, jobs are going to evolve and roles will shift and businesses will need to adapt as well. We're all going to need to rebalance our workforces as agents take on more of the workforce and then we can rebalance and reshape our companies into new ways. History has shown us that with every disruption comes an explosion of new opportunities. This morning, I was on the phone with one of our large customers and they were telling me how they're targeting inside their company 25% more efficiency with Artificial Intelligence, incredible goal. This is an incredible moment. Entire industries are going to emerge fueled by innovation and creativity of people using Agentforce to solve challenges to reach new heights. It's just the beginning of a level of innovation and change that none of us have really ever seen. It's a radical expansion of our total addressable market. And it's really the beginning of a change that we're going to see that's including agents, that's going to include robots, that's going to include the use of the data and the metadata and all the technology that we've been pioneering now for the last several decades. This is more than a technological revolution. It's an opportunity to create a better future for all of us. And at Salesforce, we believe business is the greatest platform for change. And with Agentforce, we're leading the way into a new horizon of digital |
1,915 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | believe business is the greatest platform for change. And with Agentforce, we're leading the way into a new horizon of digital labor. We're excited to take this vision for deploying a digital labor force for every organization even further. And you're going to now and this is incredible even to be able to say this because we just introduced Agentforce in October, but I want to invite all of you to join us for the launch of Agentforce 2.0. And it is incredible what you are going to see, the advancements in the technology already are amazing in accuracy, in the ability to deliver even additional value. And we hope that you're going to join us in San Francisco. This is going to happen on December 17th. You'll see Agentforce 2.0 for the first time and you're not going to believe it, you're not going to want to miss it. And now over to Brian. |
1,916 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | Brian Millham: Hey, thanks, Marc. Really appreciate it. I've been at Salesforce almost as long as Marc and Parker and this is the most exciting time in my career. As a company, we redefined enterprise software with cloud and social and mobile and predictive AI over the past 25 years and now we're doing it again with Agentforce. As Marc said, this is the beginning of a revolutionary transformation that will fundamentally redefine how we work and how work gets done. Our strong results in the quarter reflect the trust our customers, partners, and stakeholders have in the Salesforce to lead them into this new agent-first world. We made great progress in the quarter against Salesforce growth pillars, first and foremost with Agentforce and Data Cloud, but also with our multicloud deals, international expansion, industry solutions and our ecosystem. Agentforce will enable companies to achieve a new era of abundance with more efficiency, more productivity, even stronger customer relationships, higher margins and higher revenues across every industry. It's a new technology model and a new business model, and we've built a complete agent-first platform for customers that will save them millions of dollars and provide them with limitless workforces to drive greater value. Companies like Remarkable and Wiley are already seeing incredible results. Wiley, an early adopter is resolving cases over 40% faster with Agentforce than their previous chatbot. Heathrow Airport, one of the busiest airports in the world, will be able to respond to thousands of travelers' inquiries instantly, accurately and simultaneously. SharkNinja, a new logo in the quarter, chose Agentforce and Commerce Cloud to deliver 24x7 personalized support for customers across 28 international markets and unifying its service operations. Our customer success with Agentforce and our AI solutions is driving strong results. In Q3, the number of wins greater than $1 million with AI more than tripled year-over-year and we signed more than 2,000 AI deals, including |
1,917 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | of wins greater than $1 million with AI more than tripled year-over-year and we signed more than 2,000 AI deals, including more than the 200 Agentforce wins that Marc shared. To capture this increased demand for Agentforce, we're hiring 1,400 AEs globally in our fourth quarter and we're also using new sales SDR agent and sales coaching agent to augment every seller. We're also seeing amazing Agentforce energy across the ecosystem with our global partners involved in 75% of our Q3 Agentforce deals in nine of our top 10 wins in the quarter. Over 80,000 system integrators have completed Agentforce training and hundreds of ISVs and technology partners are building and selling agents. And our partners are also becoming agent-first enterprises themselves. In the quarter, Accenture chose Agentforce's streamlined sales operations and enhanced bid management for its 52,000 global sellers. By integrating sales coach and custom AI agents, Agentforce is improving deal quality and targeting a 75% boost in bid coverage. We see an incredible future with Agentforce, not only for our customers, but also for us. As customer zero, we can leverage Agentforce ourselves to realize the benefits of digital labor for us to amplify and augment our human workforce. Marc talked about how we've reimagined Salesforce customer service with Agentforce, while we're also deploying Agentforce to engage our prospects on Salesforce.com, answering their questions 24x7 as well as handing them off to our SDR team. You can see it for yourself and test it out on our homepage. We'll use our new Agentforce SDR agent to further automate top-of-funnel activities from gathering leads, lead data for providing education and qualifying prospects and booking meetings. Initiatives like this and many others means Salesforce will become a new lever for productivity, growth, and efficiency for Salesforce, which should save millions of hours and free up hundreds of millions of dollars to reinvest into our strategic growth initiatives. Becoming an agent-first |
1,918 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | of hours and free up hundreds of millions of dollars to reinvest into our strategic growth initiatives. Becoming an agent-first enterprise starts with having unified data. That's why we continue to see amazing momentum with Data Cloud, which was included in eight of our top 10 wins in the quarter. Today, 25% of the Fortune 100 are Data Cloud customers. Marc mentioned the Adecco Group, they're centralizing more than 40 instances in legacy systems with Data Cloud to build a foundation to implement Agentforce at scale. Usage is a key indicator for our product's value to our customers and our customers are now processing 767 trillion records every month. Indeed, the world's leading job site hires three people every second on its platform. Using Data Cloud as its go-to-market data architecture Indeed matches 580 million job seeker profiles with over 3 million employers with Agentforce Indeed aims to have time to hire and help 3 million people overcome employment barriers by 2030. IBM, one of our valued strategic partners selected Data Cloud in the quarter to enhance their global client service with a unified view of all client interactions and actionable usage insight they can deliver even more efficient personalized experiences. Proprietary unstructured data is a powerful fuel for AI and we're excited that we were able to close the acquisition of Zoomin to accelerate and unlock the unstructured data to power AI agents, making them more personalized and context-aware for every customer interaction. We also finalized our acquisition of the Own Company. Own's data management capabilities complement our existing offerings and will strengthen data security, privacy, and compliance across our platform. As Marc described, Agentforce is a gamechanger for our core products, enabling customers to leverage AI-powered insights and actions directly in the flow of work across our entire product portfolio. This is evidenced by the strong demand for Sales Cloud and Service Cloud, both of which achieved double-digit growth in Q3. We |
1,919 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | This is evidenced by the strong demand for Sales Cloud and Service Cloud, both of which achieved double-digit growth in Q3. We also just wrapped up another incredible Cyber Week during which Commerce Cloud powered close to 50 million orders on digital storefronts with nearly 100% uptime. Salesforce powered nearly 60 billion AI-powered product recommendations, a 21% increase year-over-year and over 56 billion marketing messages were sent via Marketing Cloud. Service Cloud also helped our customers field and resolve 3.8 billion cases. Clearly, the scale, reliability, intelligence of our integrated platform is unmatched. And we continue to see solid momentum with Slack with wins at Capital One, SNAP, Rivian, and Volkswagen Group Technology. Annual spend on Slack AI grew nearly 50% quarter-over-quarter and Slack was included in more than a third of our deals greater than $1 million. Since the release of Slack AI, our customers have summarized over 600 million messages, saving them a collective 1.1 million hours. Tableau and MuleSoft continue to be foundational and fundamental to our customers' transformations. In the quarter, Tableau had wins at Allegis, SiriusXM, and Hitachi and MuleSoft had wins at Northwell Health, 3M, and CalOptima Health. Our industry clouds continue to fuel our growth with strong demand in highly regulated industries like healthcare, notably, our new agent-first Life Science Cloud was in three of our top 10 deals in the quarter. We also saw strong momentum internationally with wins at Brenntag and Finnair, once again, half of our top 10 wins for the quarter were international. We continue to unlock customer spend through new channels, including the Agentforce partner network that launched at Dreamforce, which allows customers to customize and deploy specialized agents using trusted third-party extensions from Salesforce AppExchange. And AWS Marketplace continues to be a growth driver. Our Q3 transactions doubled quarter-over-quarter with 10 deals exceeding $1 million. Salesforce's business and |
1,920 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | a growth driver. Our Q3 transactions doubled quarter-over-quarter with 10 deals exceeding $1 million. Salesforce's business and financial performance has delivered unprecedented results and we're doing it again with our product transformation and Agentforce. We're starting Q4 with strong momentum and no one is better positioned to capture the massive Agentforce opportunity ahead. Now over to you, Amy. |
1,921 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | Amy Weaver: Great. Thanks, Brian. As you heard from Marc and Brian, we are incredibly excited about the opportunity ahead with Agentforce. To simply put, Salesforce is uniquely positioned to become the leading enterprise AI platform and the source of a digital workforce for companies around the globe. And as customer zero for Agentforce, we're already seeing a significant pickup in case deflections for our customer service organizations. This is just the beginning of a new world of humans and AI agents working together to fundamentally reshape the economics of business. As Marc mentioned, we've been on a financial transformation over the past several years and you'll see it in our results. Q3 represents another quarter of focused execution leading to strong outcomes. Q3 revenue was $9.44 billion, up 8% year-over-year in nominal and constant currency, driven by resilience in our core clouds. Subscription and support revenue grew 9% year-over-year in nominal and constant currency, led by another quarter of double-digit growth in both sales and service, driven by strong ARPU growth. As expected, this was partially offset by deceleration in our license revenue growth in MuleSoft and Tableau in Q3 on tough prior year compares. From a geographic perspective, Americas revenue grew 6% in nominal and constant currency, EMEA grew 12% or 9% in constant currency and APAC grew 16% or 14% in constant currency. We saw strong new business growth in LatAm, Canada, and Australia, while the United States and parts of EMEA remained constrained. From an industry perspective, in Q3, health and life sciences, manufacturing, and automotive and energy all performed well, while retail and consumer goods were more measured. Our multi-cloud momentum continues with our top-25 deals averaging more than five clouds each. Now you hear us talk about this metric every quarter. It's an incredible proof point that our customers trust Salesforce to transform their entire customer experience from sales to service to marketing and commerce to |
1,922 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | our customers trust Salesforce to transform their entire customer experience from sales to service to marketing and commerce to analytics and integration. But our multi-cloud strategy is also core to our financial strategy. Multi-cloud customers have higher spend, lower attrition rates and drive significant ARR expansion for us each quarter. That's because Salesforce is the only company that can deliver a 360-degree view of your customers, which is essential for every company as we move into an agent-first world. Data Cloud also continues to be the foundation for every AI transformation and it was included in one-third of all of our deals this quarter over $1 million. As you heard from Brian, Data Cloud helps unlock AI with our customers. And that's why eight of our top 10 deals included both Data Cloud and AI, inclusive of Agentforce. This is really the model for all future transactions. Q3 revenue attrition ended the quarter slightly above 8%, in line with recent quarters. Q3 non-GAAP operating margin was 33.1%, up 190 basis points year-over-year, driven by top-line outperformance and disciplined expense management. And I am very pleased to share that this quarter, our GAAP operating margin hit 20% for the first time in company history. Q3 non-GAAP EPS was $2.41, inclusive of a $0.18 charge driven by mark-to-market adjustments of our strategic investments portfolio. Excluding this impact, non-GAAP EPS would have been $2.59, well ahead of our guidance. Q3 operating cash flow was $2 billion, up 29% year-over-year. Q3 free cash flow was $1.8 billion, up 30% year-over-year. Turning to remaining performance obligations. RPO, which represents all future revenue under contract, ended Q3 at $53.1 billion, up 10% year-over-year. Current RPO or cRPO, ended at $26.4 billion, an increase of slightly more than 10% year-over-year in nominal currency. This includes a $100 million FX tailwind, which results in 10% year-over-year growth in constant currency. cRPO outperformance was driven by early renewal favorability and |
1,923 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | results in 10% year-over-year growth in constant currency. cRPO outperformance was driven by early renewal favorability and strong new bookings performance. Of note, on the bookings performance, over the past couple of quarters, we have seen stabilization in our transactional businesses, most notably Create and Close and SMB. One call out on the Q3 cRPO results. As you heard from Marc, Agentforce's momentum in Q3 was incredible with over 200 deals closed in only one week. However, given we are early in our adoption cycle, it is not yet a material contributor to cRPO. On capital return, in Q3, we executed $1.2 billion in share repurchases and paid nearly $400 million in dividends. This brings our total return to shareholders in the quarter to $1.6 billion. Through our capital return program, we continue to expect to more than fully offset dilution from our FY'25 stock-based compensation. And I'm pleased to share that since inception of our capital allocation program, total capital returns have now surpassed $20 billion. Now let's turn to guidance. Note that after the end of our third quarter, we closed our acquisitions of the Own Company and Zoomin. As such, our guidance incorporates contributions from both these deals. Let's start with the full fiscal year '25. On revenue, we are raising the low end of our guidance range to $37.8 billion and maintaining the high end at $38 billion, growth of approximately 8% to 9% year-over-year, reflecting the strong execution and revenue outperformance over the last two quarters. For subscription and support revenue, we still expect approximately 10% growth year-over-year in constant currency. A few reminders on our revenue guide. On FX, our revenue guidance continues to incorporate a $100 million FX headwind year-over-year or a 30 basis-point impact. We continue to expect our professional services business to be a headwind to revenue growth. And as we shared last quarter, our guidance incorporates deceleration in our license revenue growth in the back half of this year. On |
1,924 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | we shared last quarter, our guidance incorporates deceleration in our license revenue growth in the back half of this year. On attrition, we expect attrition to remain consistent at slightly above 8% for the full year. Now turning to profitability and cash flow. On margins, we are pleased to raise our fiscal year '25 non-GAAP operating margin guidance to 32.9%, representing a 240 basis point improvement year-over-year. This incorporates intentional investments in growth opportunities, most notably in Agentforce and Data Cloud. As we said last quarter, stock-based compensation is still expected to be approximately 8.4% as a percent of revenue. For fiscal year '25, GAAP operating margin guidance continues to be slightly below 20%, representing 540 basis points of improvement year-over-year. We expect fiscal year '25 GAAP diluted EPS of $6.15 to $6.20. Non-GAAP diluted EPS is expected to be $9.98 to $10.03. We are raising our fiscal year '25 operating cash flow growth to approximately 24% to 26%, inclusive of cash tax headwinds. And we continue to expect CapEx for the fiscal year to be slightly below 2% of revenue. This now results in free cash flow growth of approximately 26% to 28% for the fiscal year. Now to guidance for Q4. On revenue, we expect $9.9 billion to $10.1 billion, up 7% to 9% year-over-year in nominal and constant currency. cRPO growth for Q4 is expected to be approximately 9% year-over-year in nominal, including $100 million FX headwind and slightly above 9% in constant currency. Similar to Q3, we do not expect a material contribution to cRPO from Q4 Agentforce related bookings. For Q4, we expect GAAP EPS of $1.55 to $1.60 and non-GAAP EPS of $2.57 to $2.62. In closing, I am very pleased with our strong execution this quarter and we remain focused on driving profitable growth, optimizing free cash flow, and delivering a new era of customer success with Agentforce, which truly represents the next evolution of Salesforce. Now, Mike, let's open up the call for questions. |
1,925 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | Michael Spencer: Thanks, Amy. As a courtesy to everyone on the call, we ask that everyone only ask one question, please. With that, Regina, let's go to the first question, please.
Operator: Our first question will come from the line of Brent Thill with Jefferies. Please go ahead.
Brent Thill: Hi. Good afternoon, Marc. On Agentforce, I'm curious if you could just talk about the halo effect you're starting to see across the product lines, perhaps some of the other products getting pulled in. You mentioned Data Cloud, can you speak to what you're seeing from that? Thank you. |
1,926 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | Marc Benioff: Brent, thanks. That's a great question. And Amy really hit a very subtle line in the middle of her script and it probably requires a little more illumination, which is Amy really said to you that in our top-25 deals, we saw five, this kind of collaboration with these five clouds each. And what that means to us is that our top customers are really loading in this complete agent-first cocktail. And this idea that we have sales, we have service, we have marketing, we have analytics, we have our data cloud, we have Slack and every customer wants these products and wants them together. You know, we have an incredible Sales Cloud, number one in the world, you know that. And it is the only agent-first Sales Cloud today. It's highly differentiated. We have the number-one Service Cloud in the world. Gartner just published the new Magic Quadrant. We're number one way up and to the right and guess what, we are now farther up into the right because we're the only agent-first Service Cloud, Marketing Cloud, Analytics, Data, Slack across the board. And I'll tell you a story, which is we have an incredible customer in the healthcare industry and they recently called me in there thinking about how are they going to deploy these agents and on and on and on, and it's a huge opportunity for healthcare, and I can talk to you exhaustively all about that. But we gave them the whole pitch, went through the whole thing and then the next day they called us back and they said, we really want to talk to you now about our Marketing Cloud choice. And we're looking at Adobe and how should we think about that? And I'm like, well, we really probably should bring in our team and show you what we're doing, but it's really you have to look at the whole platform that we can do because, yes, we have an incredible Marketing Cloud and incredible email capabilities and promotion capabilities and on and on and deeply integrated into our workflow. But take a look how it operates across all of your customer channels and all of your customer |
1,927 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | integrated into our workflow. But take a look how it operates across all of your customer channels and all of your customer touch-points and how this is one comprehensive customer suite and it's all agent-first and then he sent me a text and it's a very large customer and said, of course, we are going with you on the marketing as well. Because I think when customers realize that they are going to build agent-first companies that the agent needs to have a comprehensive access to this entire dataset and metadata set that we are the only ones who have built this platform. Nobody else has a comprehensive platform that does Sales, Service, Marketing, Analytics, Data Cloud, Slack, all integrated together as one piece of code and operating across all languages, all currencies and can scale from the smallest companies to the very largest in the world. And that is what is unique about Salesforce. And we have something very special right now because and you know Brent because you've been covering us for a long time, we always have the best enterprise AI and Einstein is the best. It's been -- we've been working on that for more than a decade. So of course, we were able to put it into overdrive and deliver agent-first. But because it's within the platform, everything is in the platform. This isn't some distinct discrete piece of code, it's just another light switch on for the customer to get the full level of functionality. So, I couldn't be more excited about it. I'm sure it's coming through on the call. I really think that for all of us, you think about, Brent, how long we've been working together for decades before I started at Salesforce and you think about the conversation we just had on this earnings call is unlike any conversation you and I have ever had about software. We are all about to learn and grow and expand and evolve and become a different kind of industry that's providing a different kind of value and this is the most excited I've ever been about the software industry. |
1,928 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | Michael Spencer: Thanks, Brent. Regina, we'll take the next question, please.
Operator: Your next question comes from the line of Keith Weiss with Morgan Stanley. Please go ahead.
Keith Weiss: Excellent. Thank you guys for taking the question and definitely hear the excitement coming through on the call. Maybe a question for Brian. When it comes to those 200 deals that you've already signed for Agentforce maybe you could give us some color on what those deals look like? Do they tend to be upsells? What type of uplift do you see if you're upselling into customers? Do they tend towards like one cloud or another? How expansive are there? Any kind of color that we can use to try to kind of understand this opportunity better.
Brian Millham: Yeah, Keith, thank you for the question and a good one. We are seeing incredible traction with our customers as add-ons to many of our Service Cloud offerings. Obviously, you know Service Cloud is our largest cloud and our initial Agentforce opportunity is with our Service Cloud customers right now and we saw a ton of add-ons happening in our customer base with Service Cloud. But what our customers also recognize is that this is a platform. And the opportunity to move from, yes, of course, we want to have autonomous agents that are supporting customers like we have on help.salesforce.com, but what are all the opportunities you have in your interactions and the flow of work with your customers where you can deploy agents. And so while we have tremendous excitement in the initial 200 deals, we're largely in the Service Cloud space, we feel great about the opportunity with Sales Cloud and with Marketing Cloud and with Commerce Cloud and of course with Data Cloud, which is included in all of our Agentforce deals. And so those 200 deals, sort of, tip of the iceberg when we think about the opportunity that's ahead of us for Agentforce.
Michael Spencer: Thanks, Keith. Regina, we'll take the next question, please. |
1,929 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | Michael Spencer: Thanks, Keith. Regina, we'll take the next question, please.
Operator: Your next question comes from the line of Raimo Lenschow with Barclays. Please go ahead.
Raimo Lenschow: Perfect. Thank you. You're obviously creating a lot of value for your clients. Like how is the discussion about how you kind of participate or work with the clients about pricing for Agentforce going or like how should we think about it, what are you hearing there? Thank you.
Brian Millham: Raimo, thanks for the question. I'll start and I think Marc is probably going to chime in as well. But we were super excited about. And I would say, as you all know, it's a usage-based structure and at $2 a conversation, we feel like the value is very high for our customers given what they're spending today in a lot of their conversations, please. |
1,930 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | Marc Benioff: Everybody knows I've been wearing a boot because I ruptured my Achilles while I was on a scuba diving trip to Fakarava, which is an incredible place in the Tuamotus in French Polynesia for my birthday, I was having a great time, ruptured my Achilles unfortunately, and I'm sure we all know the international motto of Fakarava, which I have close to my heart, which is I don't give a Fakarava. So, I think that I just got a call from my hospital telling me that I'm coming in to get scheduled for another MRI and incredible service. Everybody knows I have this great relationship with UCSF and they pay a lot of attention to me. I pay a lot of attention to them, incredible organization and they had a lot of questions for me about getting me ready for my next MRI. And at the end of the call, it was kind of pre-operative care and there'll be another call post-operative and so forth. And I was just saying to myself, wow, what did that cost them? And they just don't have enough people as it is. Their doctors are already burned out, their nurses are burned out. I talk to the folks all the time. There's a lot of pajama time for all these doctors is what they call it because they're all working late at night with their families, trying to get through all of their messages. Everybody is maxed out at UCSF. I mean, it's an incredible org, but I'm -- I can't believe the amount that they have to do with such actually limited workforce. And then while I got this call, I said they kind of know all of this already about me. They've got all of my data, they have all of my care, they have my family history. They've got all my scans. They can have an agent do this work and that call probably cost them $100. And it didn't have to happen. And I think that we could have done the call for probably about $1.50. And I think that is the message to our customers, which is how are you going to give some of your people a break, let them get back to their strategic work, let them focus on what really matters to their customers and some |
1,931 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | people a break, let them get back to their strategic work, let them focus on what really matters to their customers and some of the work that's a little bit more administrative and bureaucratic and political that's done by these political layers or higher levels that's like, you know what, I think that could have happened with an agent. And that's kind of how I look at it. And I think we're just at an incredible moment where we can really grow our country's revenue, our GDP and do a lot more, have a lot more productivity without hiring a lot more people. And the hospital example is the best example. And consumption pricing isn't new to Salesforce. You all know that we have our sandboxes and our Commerce Cloud and Heroku and Data Cloud and many, many. But this is a consumption product. We have per-user products, which are for humans. We have consumption products for agents and robots and that's how I think we should look at it, which is the comparative costs is there's just no comparison. And do you want to add more to that, Brian? |
1,932 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | Brian Millham: Yeah, I'd just say, our customers really understand the cost of their labor right now. And when we can deploy agents to help them manage their interactions with their customers, the pricing conversations are significantly easier. And so you can even see it on our website. We've got calculators that allow our customers to go do the work themselves and it's been a great ad for them to go understand what the cost structures look like and it's been an enlightenment for many of our customers to see the value that we can deliver for them with Agentforce.
Michael Spencer: Great. Thanks, Raimo. Regina, we'll go to the next question, please.
Operator: Our next question comes from the line of Brad Zelnick with Deutsche Bank. Please go ahead.
Brad Zelnick: Great. Thanks so much for taking the question. Marc, I wanted to ask about the more core initiative that you mentioned in your remarks. It would seem further integrating the platform can only be a good thing for customers. Can you talk more about what's involved and the size of the price as you come out the other side of this initiative? Thanks. |
1,933 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | Marc Benioff: Well, we have been working on this now for a couple of years really since we started our transformation, which I think maybe this call is the two-year anniversary of our transformation. Is that right, Amy? I mean, it was about two years ago that we were like, whoa, we're about to go through an incredible transformation. And I think we would not have gotten through that transformation without the support of all of you. And I think you know that you gave us a lot of advice and thinking and strategy to do that and it's been an incredible 24 months. It's been a financial transformation and it's been a technology transformation. And now when we really think about what are the things that we really invested in, it's -- we really tried to look at how do we try to make our organization stronger to be able to deliver the numbers that we want to be able to do to and we want to expand our distribution organization. That's something that we wish we had done faster and we're still not where we want to be there. I would say where we've made very significant investments were in AI and I think that's evidenced by Agentforce and we also made very significant investments in More Core. We've dramatically increased not only the productivity, but also the number of engineers in the company over the last two years as well. That's been an incredible focus for us. That's why we're able to deliver this technology capability, and when we look at the company, I would say More Core has come out of it. So, at Dreamforce, you saw how commerce and marketing, for example, which always had been outside of the core platform are now inside the core platform. And the idea that we want Sales, Service, Marketing, Analytics, Data Cloud, Slack, all to be in one platform. And that is because we want all the workflow, the data, the metadata, all to be in one platform. And the reason why is because the AI does not work if you don't have that. And the AI needs this ability to look across these huge datasets and capabilities to kind of pull |
1,934 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | work if you don't have that. And the AI needs this ability to look across these huge datasets and capabilities to kind of pull it all together because you can imagine that I'm on the phone with UCSF and I'm talking now to the agent at some point in the future instead of talking to the person who I spoke to today and they say, you still owe $500 on that last visit, which is not uncommon for me, there's some additional fee or something that I have to pay. And I'll say, yes, go ahead and process that and that's all just happens on our platform. So the commerce can happen on the platform, the confirming email can happen on the platform, the case management can happen on the platform, the patient relationship management can happen on the platform and it can happen by industry, it can happen by geography, it can happen by currency. And that is what's really, I think unique about Salesforce and it's not just that we're delivering this agent-first solution, it's the comprehensive functionality set underneath there that's all possible. |
1,935 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | Michael Spencer: Great. Thanks, Brad. Regina, we'll go to the next question, please.
Operator: Our next question comes from the line of Brent Bracelin with Piper Sandler. Please go ahead.
Brent Bracelin: Good afternoon and thanks for taking my question here. I wanted to ask about the new foundations offering. This seems like a new strategic approach to multi-cloud packaging that could also drive broader agent adoption. What's been customer response to foundation so far? And do you have any sense on what adoption might look like in the coming year? |
1,936 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | Marc Benioff: I think that foundation and when you look at other initiatives that we have and this is all coming out of More Core. So when you look at essentials, when you look at our focus on the SMB market, when you look at kind of you're seeing the fundamental rewriting of the product in real-time, it is a little bit like we are flying the airplane and rebuilding it in real-time. I would joke with my team. Two years ago, what happened was we were flying the airplane. We found out the two pilots were gone in the front and one person had the parachute jumped out of the plane and we were all left on the plane and we were on the phone with all of these going, well, we're going to put it all together and just trust us, we're going to get this done. And while we've been doing that not only did we land the plane successfully, but we rebuilt the whole airplane in real time. And that idea that the platform itself has been rebuilt. And it's pretty incredible. Foundations is really a glimpse at what's happening. It's the same code set, but you can see how Foundations is kind of a whole different way to use Salesforce and we're making as much of our functionality available to all of our customers as possible. So we're shipping Foundations so that every customer can get a taste of Sales and Service and Marketing and Analytics and Data Cloud and Slack. And everything that we have because we realize and I'll include one thing I didn't mention is platform. So, it's very important that these customers see that they don't have to go buy another best-of-breed product, they can just flip the switch and everything comes on. And that is working and we still have a lot of work to do to educate our customers on all the capabilities that we have. Still, a lot of our Sales Cloud customers don't have Service Cloud and a lot of our Service Cloud customers don't have Sales Cloud and that's true of Marketing Cloud, I could go to each one of these clouds because in some ways, we've been selling a lot of these clouds in their own silos, so |
1,937 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | I could go to each one of these clouds because in some ways, we've been selling a lot of these clouds in their own silos, so they've built on their own customer bases. And we have a lot of customers and we have a lot of software to sell to a lot of people. But it's an exciting moment because we're so highly differentiated. |
1,938 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | Michael Spencer: Great. Thanks, Brent. Regina, we'll take our last question now, please.
Operator: Our final question comes from the line of Kirk Materne with Evercore ISI. Please go ahead.
Kirk Materne: Yes, thanks very much. Congrats on the quarter and great to hear all the excitement around Agentforce off the launch. Brian, this is probably for you. I was just curious and dovetails back into some earlier comments. Really strong attach with Data Cloud thus far. I was just kind of curious how far along are your customers in terms of having their data in order so that they can get value from Agentforce somewhat out of the box? I'm just trying to get a better understanding on how long does it take from the conversation with customers and sort of scouting out what they're going to do, getting their data in order and then bringing sort of Agentforce to bear, is it a three, six-month process? Just trying to get a sense if you have an idea on that quite yet. Thanks.
Brian Millham: Yeah. It's a great question, Kirk, and I appreciate it. It is -- it varies by customer, honestly. If you've had a very strong data architecture strategy for many years, your ability to turn on Data Cloud, harmonize your data and leverage it in our AI solutions is months and weeks even. There are other customers who have data siloed across their business. They've built data lakes. It sits across different divisions that they want to bring together in Data Cloud and that can take a bit longer, six months even to bring that data together. They all want to move faster, which is the great opportunity for us. They all recognize the need for harmonized data to make their AI and their Agentforce opportunity better with their customers. And so, what we're seeing is tremendous demand for not only the technology, but the people to go harmonize the data, get it in a state that they can now leverage Agentforce to really deliver for their customers. So it really depends, honestly, is the answer. |
1,939 | CRM | 3 | 2,025 | 2024-12-03 17:00:00 | Salesforce, Inc. | 122,917 | Michael Spencer: Thanks, Kirk, and thanks everyone for joining the call today. We look forward to seeing everyone over the coming weeks and wish everyone a Happy Holiday season.
Operator: That will conclude today's call. Thank you all for joining, you may now disconnect. |
1,940 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | Operator: Welcome to Salesforce's Fiscal 2025 Second Quarter Results Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker, Mike Spencer, Executive Vice President of Finance and Strategy and Investor Relations. Sir, you may begin.
Mike Spencer: Good afternoon. Thanks for joining us today on our fiscal 2025 second quarter results conference call. Our press release, SEC filings and a replay of today's call can be found on our website. Joining me on the call today is Marc Benioff, Chair and CEO; Amy Weaver, President and Chief Financial Officer; and Brian Millham, President and Chief Operating Officer. As a reminder, our commentary today will include non-GAAP measures. Reconciliations of our GAAP and non-GAAP results and guidance can be found in our earnings materials and press release. Some of our comments today may contain forward-looking statements that are subject to risks, uncertainties and assumptions, which could change. Should any of these risks materialize or should our assumptions prove to be incorrect, actual company results could materially differ from these forward-looking statements. A description of these risks, uncertainties and assumptions and other factors that could affect our financial results is included in our SEC filings including our most recent report on Forms 10-K, 10-Q and any other SEC filings. Except as required by law, we do not undertake any responsibility to update these forward-looking statements. And with that, let me hand the call over to Marc. |
1,941 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | Marc Benioff: All right. Thanks so much, Mike. And thanks, everyone, for being on the call. We got so many exciting things to talk about today, and we're so excited to be with you. And we're also getting really jacked for Dreamforce, so looking forward to that. And we are just going to have a great call here. So, look, a year ago on this call, we talked about two amazing transformations. We're transforming Salesforce for as we were talking about the short and the long term, which was really code words for really addressing our financials, but really looking at this incredible AI opportunity. And now we look at a year later, I just couldn't be more excited about how these two transformations are driving the success of the company. And really, I don't think I've been more excited about the history of Salesforce and now the future of Salesforce. And how well positioned we are for the future. And you can see it in our numbers with strong performance across revenue, cash flow, margin and CRPO. The numbers are beyond my expectation in the quarter. You can see that it's pretty awesome. And you can also see the incredible innovation in our product and engineering teams are delivering the success of our customers, and we're going to talk about a whole different kind of Salesforce today, a different kind of architecture and a product that we didn't even talk about on the last earnings call, that is going to be fundamental to our future and a manifestation of our decade of AI leadership, which is Agent Force. Now, just in a few weeks, we're going to kick off Dreamforce. And I hope all of you are planning to be there. The largest AI event in the world, with more than. 45,000 trailblazers in San Francisco. And this year, Dreamforce is really becoming Agent Force. And I'll tell you, it's a funny thing about Agent Force, even one of our very top executives in engineering sent me a text last week and said, hey should we be renaming the company from Salesforce to Agentforce because we're all getting so excited about Agent Force. |
1,942 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | hey should we be renaming the company from Salesforce to Agentforce because we're all getting so excited about Agent Force. And I also told Mike that I really want to make sure all of you are there and to do what he can to put together an analyst briefing at Dreamforce. And I told him I pay for to have outstanding culinary chef, and maybe we can bring in some great entertainment for all of you to -- encourage you all to come. So I just gave him a huge budget to really motivate everyone, because I think this is going to be a moment that everyone is going to have to see in person to understand what is going on, and I'm going to explain that in a second. Because we're going to show our new Agentforce agents and how we've reimagined enterprise software for this new world of autonomous AI. And every customer, I'm going to try to get every customer who comes to Dreamforce to turn agents on while they're there. So many of the customers, of course, are already using our applications you know that, okay. And of course, we're automating all our customer touch points. That's our Customer 360, and we've been talking now for the last couple of years about how we've really built this phenomenal Data Cloud that has really become, you know I would say our fastest growing, most exciting product ever up until one that we're about to talk about, which is to help our customers amalgamate all the data that they need to really get their AI act in order. That gets their data and metadata integrated and then federate to other data sources, and then this critical third tier, which this is the first call that we've ever talked about it, which is these agents. And this idea that you're not just going to have sales agents and service agents. You probably read, heard, maybe saw on CBC, we're building the agents for workday. And we're going to be building custom agents for so many of you as well with Agentforce because it is a development platform as well as this incredible capability to radically extend your sales and service organizations. |
1,943 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | it is a development platform as well as this incredible capability to radically extend your sales and service organizations. So when you arrive at the Dreamforce campus, you're going to see a big sign outside that says, humans with agents drive customer success together. And that's because we now so strongly believe the future isn't about having a sales force or a service force or a marketing force or a commerce force or an analytics force, the future is about also having an agent force. And while many customers today don't yet have agent forces, but they do have sales forces or service forces, I assure you that within a year we're all going to have agent forces and we're going to have them at scale. And it's going to radically extend our companies and it's going to augment our employees make us more productive. It's going to turn us into these incredible margin and revenue machines. It's going to be pretty awesome. And this is really the future, a new future that we can really envision, and with this Agentforce platform, we're making it easy to build these powerful autonomous agents for sales, for service, for marketing, for commerce, automating the entire workflow on their own, embedding agents in the flow of work and getting our customers to the agent future first. And this is our primary goal of our company right now. This is my singular focus. So at Dreamforce and on this call, you're going to hear a lot of stories already of customers, and we're going to talk about the customers who have it, customers like. OpenTable and Wiley and ADP and RBC and so many others who are deploying these agents and running them on top of our Data Cloud and our apps. And in fact, you're going to hear about -- at Dreamforce you're going to hear one of the very largest healthcare companies in the world, it's got 20 million consumer here in the United States who's resolving more than 90% of all patient inquiries with Agent Force. And they're benchmarking us significantly higher than any other competing AI platform, and that's |
1,944 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | inquiries with Agent Force. And they're benchmarking us significantly higher than any other competing AI platform, and that's based on some incredible AI breakthroughs that we have had at Salesforce, and I just have to call out the quality of our research team, our engineering team, and our product team, because the accuracy of our results, the reduction of hallucinations and the level of capability of AI is unlike anything, I think that any of us have ever seen, and we've got some incredible new techniques especially incredible new augmented RAG techniques that are delivering us the capability to deliver this accuracy for our customers. In fact, one of these very large media companies that we work with a lot of probably know who have everything, you know every possible media asset, well, they're just resolving 90% of all of their employee and consumer. Issues with Agent Force, pretty awesome. So there's nothing more transformational than agents on the technology horizon that I can see. And Salesforce is going to be the first company at scale to deploy enterprise agents and not just any enterprise agents, the highest quality, most accurate agents in the world. Now all of this, with our continued focus on trust, with customer success, with innovation is driving the results that you see today. And in Q2, we've delivered $9.33 billion in revenue, up 8% year-over-year in nominal and 9% in constant currency. Subscription and support revenue grew at 9% year-over-year and 10% in constant currency. And for the 11th year in a row, Salesforce ranked number one CRM provider by the IDC Software Tracker. And of course, Salesforce is the number one AI CRM. And we'd like to say we're the third largest enterprise software company, but I was doing some calculations today, and I'd like you guys to do the calculations, I think we just became the second largest enterprise software company because we're not delivering infrastructure or hardware. And we already passed Oracle in Japan as the second largest enterprise software company. |
1,945 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | delivering infrastructure or hardware. And we already passed Oracle in Japan as the second largest enterprise software company. And I think we just did that, if you look at our enterprise software, Overall, we're the largest enterprise software company in the world. So we continue to see growth in multi-cloud deals. In fact, multi-cloud deals accounted for close to 80% of our new business in the quarter, and we're just operating at this incredible scale, delivering 25 trillion Einstein transactions across all of the clouds during the quarter. That's 25 trillion and more than a trillion workflows, are now managing 250 petabytes of data for our customers. We also continue to deliver on this incredible margin growth, and so many of you have guided us through that incredible transformation. So I just want to thank all of you for that. For the second quarter, our non-GAAP operating margin was 33.7%. That's up 210 basis points year-over-year and you can see the incredible transformation that we've gone through the last 24 months in margin and cash flow, which also was $892 million in the quarter, up 10% year-over-year. So now let's turn to this financial guidance. For the fiscal year '25 we continue to expect revenue at $37.7 billion to $38 billion, a growth of 8% to 9% year-over-year. And subscription and support revenue growth of approximately 10% year-over-year in constant currency. And as you can see from our results, we remained committed to this very profitable growth at this incredible level of scale, and we're raising our fiscal '25 non-GAAP operating margin to 32.8%, a 230 basis point improvement year-over-year. And as I told you last quarter, we're delivering incredible record cash flow this year. I'm pleased that we're also raising our operating cash flow guidance to 23% to 25% year-over-year. I'm also extremely proud of our team's focus and determination deliveries, great results and we're going to hear more in a second. Now, as you know, and as you probably can tell from my narrative already, AI is not |
1,946 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | and we're going to hear more in a second. Now, as you know, and as you probably can tell from my narrative already, AI is not only my top of mind, but I can tell you because I've met with hundreds of customers this quarter that it is the top of mind for every customer, for every CEO, for every CIO, but I want to tell you before I get into this, is that I think that there's a lot of misconceptions about AI with my customers. I have been out there very disappointed with the huge amount of money that so many of these customers have wasted on AI. They are trying to DIY their AI. It's not so unlike when we first saw cloud emerge, or even other technologies where they feel like they have to roll their own, build it themselves, get in the weeds, try to figure out, and they're not going to do it better than we're going to do it. We're a professional enterprise software company, this is what we do. And we do it with the trust and scale that they need. And this idea that our customers are going to have to build their own models, train their own models, retrain their own models, retrain them again, and I'm meeting with these customers, and they're so excited when they meet me, and they say, oh, I built this model and we're resolving 10%, 20%, 30%, 40% of this, of that and whatever, and I'm like, really? Well, take a look at our models and our capability where you don't have to train or retrain anything, and you're going to get more than 90% and then they say, wait a minute, how do you do that? And this is a moment where every customer needs to realize, you don't need to DIY your AI. You can use a platform like Salesforce to get the highest efficacy of artificial intelligence, the best capability to fully automate your company, achieve all of your goals, and you can do it with professional enterprise software. And I've now met with all so many of these customers to really explain and to help them understand this transformative power of AI. And they really, you know, I think we've all said, okay, we've never seen a |
1,947 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | them understand this transformative power of AI. And they really, you know, I think we've all said, okay, we've never seen a technology evolve at such a rapid pace. So look at the last 18 months, we're moving from having these basic, pre-programmed chatbots. Now we can really see we're delivering these intelligent conversational capabilities. These agents, it's awesome. And we've created out of the box platform to deliver all of this for them. So this could be service reply recommendations, account summaries, report generation, you've seen in slack, this kind of auto summarization recaps all of these amazing things. The level of automation, the amount of code that our team has written, the transformation of our platform in the last 18 months, it's remarkable. And customers love it because they can take the platform. And then all of this Generative AI use case, customize it for their own needs or configure it using our capability, because they're doing that without writing a lot of code, it's clicks, not code, deploy them in days, not weeks. They're doing this in months, not years, and you're getting immediate ROI. And the stories are awesome. While customers have loved seeing the power of generative AI, even I was using Generative AI last night to write some new ads for what we're going to do, to kind of bring Agentforce across. And it's so cool and so awesome, but to have it right inside the platform makes it very real for our customers who have to manage and share all of their information to keep it trusted, to keep it secure, to be able to provide capabilities in a regulatory environment. Look this is -- they all want this huge breakthrough that's going to give them much more productivity augmentation of their employees and scale like I've been talking about. But we're seeing that breakthrough occur, because with our new Agentforce platform, we're going to make a quantum leap forward in AI. And that's why I want you all at Dreamforce because I want you to have your hands on this technology, to really |
1,948 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | forward in AI. And that's why I want you all at Dreamforce because I want you to have your hands on this technology, to really understand this. This is not Copilot's -- so many customers are so disappointed in what they bought from Microsoft Copilot because they're not getting the accuracy and the response that they want. Microsoft has disappointed so many customers with AI. Listen, these agents are autonomous, they're able to act with accuracy, they're able to come right out of the box, they're able to go right out of the platform. And when you come to Dreamforce, you know I'm sure that you're going to get to San Francisco, you're going to jump in Waymo. I think they've got, like 500 Waymos down in San Francisco, it's pretty awesome, I use it myself. And you know what, that's like Agent Force. We're like a Waymo for your customer information and for automating your company that is it's autonomous, it's going to get you to where you need to get to. And yes, we're still going to have humans in our companies, but we're also going to have these agents. So these agents don't require a conversational prompt to take action. You can do advanced planning, reasoning with minimal human input. And the example of this incredible healthcare company, you're going to be able to say to the agent, hey, I want to look at my labs. I want to understand this. Oh, looks like I need repeat labs. Can you reschedule those for me. Looks like I need to see my doctor, can you schedule that for me? I also want to get an MRI, I want to get this. And the level of automation that we're going to be able to provide and unleash the productivity back into these organizations is awesome and why that's important for this healthcare organization or for all of them that we're working with. Since the pandemic, these doctors and nurses are just so burnt out and there's so much activity for them that we're just going to unleash that productivity back to them. So let the agent handle this simple task. And let the doctors and the nurses do what they're |
1,949 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | that productivity back to them. So let the agent handle this simple task. And let the doctors and the nurses do what they're going to do best, and that is going to be a powerful moment. So this is going to be like having these trusted colleagues can handle these time consuming tasks, engaging with these, whether it's inbound lead or resolving this customer patient inquiry or whatever it is, this is humans with agents driving customer success together. An Agentforce agents can be set up in minutes, easily scalable, work around the clock, any language. And by the beginning of next fiscal year, we will have thousands of customers using this platform, and we will have handheld them to make it successful for them. deploy it, the early trials have been remarkable. To see these customers have the success, it has been just awesome. And let me give you a great example, Wiley. Now it's back-to-school season, Wiley is a long standing Salesforce customer. It's one of our first deployments in the first Agentforce trial. It's pretty awesome. And you all know they make textbooks and it's back-to-school, but maybe you don't know that Wiley has to surge their sales and service organization at back-to-school time when everyone's buying these textbooks. Well, now they can use agents to do that search. They don't have to go buy a bunch of gig workers and bring them in. And that agent capacity is so exciting for them that what we saw with Wiley was this is a quote from them, we're seeing double digit percentage increase in customer satisfaction and deflection rate compared to older technologies and in these early weeks of our busiest season. So that was very reassuring to us that we have the right thing that's happening. And Wiley has already seen 50% increase in case resolution. That's with our first generation of Agent Force, as I mentioned. The second generation of Agent Force, which we have with customers already, including some of these amazing organizations. Like Royal Bank of Canada, ADP and others. There's 90% case |
1,950 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | customers already, including some of these amazing organizations. Like Royal Bank of Canada, ADP and others. There's 90% case resolution. It is an awesome moment in this tech business. OpenTable is another super great story. You all know they are managing 60,000 restaurants or 160 million diners to support. They're on Agentforce now. They require that incredible scale to deliver top notch customer service. That's why they're using the product. It's been awesome to get the results. And it can be all kinds of questions resolving basic issues, account reactivations, reservation management, loyalty point expiration, Agentforce for service can easily answer all of these questions, like, when do my points expire? For Diner asset, follow up question like, what about in Mexico? Can I make this change? That's where we're delivering those incredible moments for OpenTable, giving them this kind of productivity enhancement. So in addition to this amazing capability Agentforce for service, now Agentforce for sales. You can imagine extending your sales force with SDRs and BDRs, who are agents that are going out and building pipeline for you and generating all kind of man and even really closing deals. So this is going to drive sales cloud growth, it already is; service cloud growth, it already is; because customers are going to extend their sales and service organizations and become a lot more productive with these agents. In the coming months, we're going to release Agentforce agents for other roles, including industry specific agents, health agents, as I mentioned, medical answering all kinds of medical questions as I mentioned, and we already have that in trial, with this amazing healthcare company, sorry, one of the largest epic databases in the world, and I just can't believe we're already resolving, as I said, 90% of these patient inquiries. So, this marks a very significant advance in providing these reliable trusted AI. You know we're really seeing a transformation of Salesforce. Look, we're still going to automate |
1,951 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | these reliable trusted AI. You know we're really seeing a transformation of Salesforce. Look, we're still going to automate all these human touch points. We're still going to have our commerce sites. We're still going to have our analytics and visualization capability of managing or we're still going to have humans who are sales organization, service organizations, but we are going to extend it all with this incredible agent capability. Now all of this type of performance from our Agentforce platform wouldn't be possible without Data Cloud. One of the reasons that our agents are so accurate is because of the huge amount of data and metadata that we had. And data is the foundation for every AI transformation. And with Data Cloud, we're providing a high performance data lake that brings together all our customer and business data, federating data from external repositories through this credible zero-copy alliance. So customers can use our Data Cloud and then federate and connect to all their other Data Clouds and then we can bring it all together to deliver the super accurate AI, that's why Data Cloud is absolutely our fastest growing organic product in history. It will be the fastest product to $1 billion -- it's going to probably be the fastest product of $5 billion, $10 billion. In Q2, the number of paid Data Cloud customers grew 130% year-over-year and the number of customers spending more than $1 million annually have already doubled. In the second quarter alone, and this is amazing, Data Cloud processed 2.3 quadrillion records with 110% platform consumption growth year-over-year. That is awesome. Just amazing, the scale and capability. And for customers who don't have that turned on yet and working at Dreamforce, we're going to focus on getting every customer on the Data Cloud. For the last 25 years, Salesforce has been deeply committed to building the most capable CRM apps that help our customers connect with their customers in this whole new way. We've automated every customer touch point and now we're |
1,952 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | help our customers connect with their customers in this whole new way. We've automated every customer touch point and now we're bringing these apps, data and agents together. It's these three levels, and this isn't three separate pieces of code or three different platforms or three different systems. This is one platform. We've rewritten all of our acquisitions, all of our core modules, our Data Cloud and our agents as one unified platform, which is how we are delivering not only this incredible functionality, but this high level of accuracy and capability. And from this first-hand experience in meeting with these customers around the globe, I can unequivocably tell you that building these agents without a complete integrated platform is like trying to assemble a plane mid-flight, it's risky chaotic and it's not likely to succeed. I mean I just got back from a Dreamforce focus group, where I met with one of the largest CIOs in the world, he was telling me how excited he was for the B2C part of his business, he built this model and accuracy rates, and then I was like, really, let me show you what we're doing here. And then he said to me, why am I doing this? Why am I not just using your platform? And I said good question. So these customers are spending millions of dollars, but are they really getting the results that they want? It feels like this early days of cloud. It's just early days of social and mobile. Customers feel like they have to DIY it, they don't need to, they can make it all happen themselves. And you can just see that to deliver this very high quality capability they can use a deeply integrated platform like Salesforce. So with that, let me just move on to Dreamforce and just say, look, I hope you're going to able to come to Dreamforce. I'm going to try to encourage everyone to do it. I've told Mike, I really want all the analysts there. I want everybody there and all the investors there. We're going to make -- try to give you the highest quality experience to encourage you to do that. You'll be |
1,953 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | investors there. We're going to make -- try to give you the highest quality experience to encourage you to do that. You'll be hearing the details from Mike on that shortly. And you're not going to want to miss it, but you're mostly not going to want to miss it because you're going to want to get your hands on this technology. This is the first time that you're going to see how AI really is going to revolutionize these enterprises. Now before I hand it off to Brian, I just want to take a moment to thank Amy Weaver. It has been an incredible 11 years for all of us who worked with Amy. She's been an amazing leader across many different parts of our organization, is a deeply valued member of our Ohana. She's been a fantastic partner to me personally and over the last few years, in particular, Amy has spearheaded our financial transformation, resulting in an unprecedented margin expansion, increased operational excellence, financial discipline, continued strategic investments and Salesforce today is better positioned than ever with phenomenal platform for growth. And luckily for us, Amy has basically going through this amazing transformation with us and now getting ready to go to the next level in her own career, and she will step down at the end of the fiscal year at the end of February, or March and then she will stay with us, I think, until May of '27 to help onboard the new CFO. And let me just rip on this for just a second. I've had the opportunity to work with so many great executives at Salesforce. And Amy is our fifth CFO. I think all of you know that we've had some great leaders, and we've been fortunate to build our company with some great folks. I remember Andy, Steve Cakebread, Graham, Mark, and then Amy has been just incredible how she's taken the financials to another level. It's been awesome to work with her. When she originally came to the company 11 years ago, she came in as our General Counsel. I think there's been a handful of general counsels who've been able to make the transformation. I always |
1,954 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | our General Counsel. I think there's been a handful of general counsels who've been able to make the transformation. I always felt that Amy could do it. I have to say it was my idea that Amy should move from General Counsel to being CFO. She has exceeded my expectations and we've hired Heidrick & Struggles and our good friend, Jeff Sanders to run a search. We're reviewing internal candidates and external candidates. We're going to do a comprehensive search. Amy is going to leave that with me. We're going to find another world class person to be our sixth CFO, which will be awesome. And if you have people that you know that you're interested in this position. It's a great job, right, Amy? |
1,955 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | Amy Weaver: It's fantastic.
Marc Benioff: Pays well, too. It doesn't it?
Amy Weaver: It's just fine.
Marc Benioff: And good job satisfaction overall, get all these great events to go to. So anyway, let sure folks know they can contact Jeff. And we're looking for that world-class executive to become CFO number six, and we couldn't be more grateful to you, Amy, for everything that you do for us every single day, for all that you do in the middle of the pandemic when we couldn't even meet in person, you took over as CFO, you led us through the pandemic. You exited the pandemic. Now you're helping us to execute this AI transformation, which is so exciting, and we couldn't be more thrilled. So congratulations, Amy, and thank you so much for everything again for everything that you have done for the company and for me personally and with a huge sense of gratitude, I'm going to turn it over to you, Brian.
Brian Millham: Well, thank you, Mark, and certainly hard to follow that. I want to --.
Marc Benioff: It really is. |
1,956 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | Brian Millham: All of that, particularly the Amy part. I want to echo your comments on Amy, an unbelievable leader who's been an amazing partner to me an example and role model to so many at our company. I'm just so glad that we have more time with Amy as we work on this transition. I want to start by thanking the team for the strong execution as we continue to operate at tremendous scale and sophistication, as a result show in the quarter, we continue to execute on our core growth pillars with strong momentum in multi-cloud deals, international expansion, industry solutions, Salesforce ecosystem and data and AI innovations across all of our clouds. As you heard from Mark, we're innovating faster than ever. Our new Agentforce platform, which will be generally available in October is a game changer for our customers and a huge opportunity for us going forward. The feedback I've heard from the pilot customers like Wiley and OpenTable and Fossil has been overwhelmingly positive. Agentforce is deeply integrated platform combining our core metadata framework in Data Cloud and Einstein and extending the power of our Customer 360 apps in ways that we didn't think possible a year ago, reducing cost, scaling workforces and dramatically improving customer and employee experiences, all without the headaches of complex, costly model training or DIY AI projects. We're already accelerating this move from AI hype to AI reality for thousands of customers with amazing capabilities across our entire AI product portfolio. New bookings for these products more than doubled quarter-over-quarter. We signed 1,500 AI deals in Q2 alone. Some of the world's largest brands are using AI solutions, including Alliant, Bombardier and CMA CGM. Bombardier, the maker of some of the world's top performing aircraft, is enabling sales reps to sell smarter by consolidating need to know information on prospects in advance of meetings and providing recommendations on how to best engage with them through the Einstein copilot and prompt builder. The next |
1,957 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | and providing recommendations on how to best engage with them through the Einstein copilot and prompt builder. The next steps for these companies, of course, will be deploying agents to drive even more automation and productivity. With AI technologies advancing so rapidly, it's been really challenging for our customers to keep pace. Each of our customers is certainly at a different stage of their AI journey. They're relying on Salesforce as their trusted adviser, their partner with them to -- in this new world where humans and AI are working together. To help our customers navigate this new world, we just launched a new team called Salesforce CTOs. These are deeply technical individuals who work alongside our customers to help them create and execute a plan for every stage of their AI journey to become agent first companies. We're continuing our own AI journey internally as a Customer Zero of all of our products with great results. We now have 35,000 employees using Einstein as a trusted AI assistant, helping them work smarter and close deals faster. And since we launched Slack AI in February, our employees have created more than 500,000 channels -- channel summaries, saving nearly 3 million hours of work. We'll, of course, deploy Agentforce agents soon in a variety of different roles and tasks to augment, automate and deliver productivity and unmatched experiences for all employees and customers at scale. Echoing what Mark said about Data Cloud, it continues to be highly strategic for our customers as they build foundations for infusing AI across their enterprises. American Family Insurance with millions of policyholders nationwide is using Data Cloud to consolidate data from multiple sources through our zero-copy partner network, creating a 360-view of the customers, enabling quick segmentation and activating lead data, including their real-time web interactions. The Adecco Group expanded their Data Cloud in the quarter, a great example of a company leveraging its gold mine of data to gain a unified view of |
1,958 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | their Data Cloud in the quarter, a great example of a company leveraging its gold mine of data to gain a unified view of its customers. Connecting all this data means that 27,000 Adecco employees using Salesforce will have seamless access to key information, including financial metrics and job fulfillment status, to help Adecco improve their job fill rate ratio and reduce their cost to serve. In all my conversations with CEOs this quarter, it's clear that we've never been more relevant, especially as companies transition to become AI enterprises. That's why customers continue to trust Salesforce across their most critical touch points with their customers, leading to strong multi-cloud deals in the quarter. As Mark said, nearly 80% of our new business in the quarter was driven by multi-cloud deals. Companies like Wyndham Hotel and Resorts are all-in on Salesforce. They're using us for Sales Cloud and Service Cloud, Marketing Cloud, Data Cloud, Einstein and MuleSoft to transform its guest experience into a seamless end-to-end journey built in a single interface. Wyndham utilizes Data Cloud to unify profile of 165 million guest records, many of which were duplicates across many sources like Amazon Redshift and the Sabre Reservation System as well as Sales Cloud, Marketing Cloud and Service Cloud. MuleSoft allows Wyndham to unlock business-critical data from various platforms and onboard future franchisees faster. And with Einstein generated recommended service replies, average call times have been reduced and service agents can focus on higher priority work. Slack continues to perform well with wins at Citadel, Converge ICT and GEICO. For the quarter, 82 of the Fortune 100 now use Slack Connect every week to better connect with their customers and their partners. In Q2, Slack AI summarized 420 million Slack messages, and customers have built 13,000 AI apps across their organizations in the last 12 months with Slack. Slack is the conversational interface where humans and agents can come together. Tableau and |
1,959 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | in the last 12 months with Slack. Slack is the conversational interface where humans and agents can come together. Tableau and MuleSoft had solid quarters with Tableau wins at the Department of Interior and RBC Wealth Management and Chewy and MuleSoft wins at [Veeam], U.S. Foods and East Carolina University. Moving on to our international business. Five of our top 10 deals came from our international teams with wins at Ferrari, Sekisui House and Commonwealth of Australia, we saw a particular strength in Japan, India and Canada. We had strong momentum in our industries business as well, and we continue to help our customers save time and money with industry-specific solutions. More than half of our top 100 deals included one of our industry cloud in the quarter. and we continue to innovate on our industry AI capabilities. At Dreamforce, we're excited to share our new AI tool kit -- industry toolkit, which features more than 100 ready-to-use customizable AI-powered actions. All of these actions can be applied to build industry-specific agents with Agent Force. Salesforce partners continue to drive our growth by helping us drive success at scale, improving time to value and amplifying our growth in new ways. Our continued focus on go-to-market channel diversification is working well. And in fact, in the quarter, three of our top 10 deals closed through the AWS marketplace. As Mark mentioned, we're just at the beginning of building an Agentforce ecosystem with companies able to build agents on our platform for their workforce and use cases, and we're excited to have Workday as our first Agentforce partner. In closing, I want to thank the team again. I'm really pleased with the execution in Q2. Dreamforce is just around the corner, and I can't wait to welcome all of you, either in person or virtually to see for yourself how humans and agents are working together to create new levels of customer success and the next generation of CRM. Now over to you, Amy. |
1,960 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | Amy Weaver: Great. Marc, Brian, thank you so much for all of the kind words. It has been such a privilege to work with both of you, the entire team of hard working, dedicated and compassionate employees at Salesforce. Marc, special thanks to you for your confidence in me and everything you saw and I will never forget you calling me more than four years ago for the CFO role. I've rarely been so surprised in my life, but it's been extraordinary. And I also want to thank all of you, our investment community and, in particular, our shareholders, for your continued support of Salesforce. It's been a pleasure working with you on our transformation journey over the last few years. Since my first day as CFO, my focus has been on transforming our business to deliver profitable growth and disciplined capital allocation. In that time, I am so proud of what we have accomplished, and I look forward to sharing Salesforce on for years to come. So moving to the quarter, I want to echo Brian and thank the team for their dedication and very strong execution in Q2. Our focus on profitable growth and our disciplined investment strategy led to strong results. Q2 revenue was $9.33 billion, up 8% year-over-year in nominal and 9% in constant currency, ahead of expectations driven primarily by resilience in our core products, license revenue outperformance and a better-than-expected professional services. Subscription and support revenue grew 9% year-over-year in nominal and 10% in constant currency. As a reminder, Q1 had benefited from the timing of license revenue in the leap year, resulting in a quarter-over-quarter headwind to Q2 revenue growth. From a geographic perspective, the Americas revenue grew 7% or 8% in constant currency. EMEA grew 11% in both nominal and constant currency, and APAC grew 9% or 16% in constant currency. We saw strong new business growth in Japan, India and Canada, while the U.S. and parts of EMEA remains constrained. From an industry perspective, in Q2, public sector HLS and comms and media performed well. |
1,961 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | parts of EMEA remains constrained. From an industry perspective, in Q2, public sector HLS and comms and media performed well. While travel transportation and hospitality and manufacturing automotive and energy were more constrained. Our subscription support revenue was driven by another quarter of double-digit constant currency growth in both Sales Cloud and Service Cloud, primarily driven by growth in ARPU due to premium mix shift and pricing discipline. And as you've heard from Brian, multi-cloud continues to be a powerful growth lever for us. In Q2, around 16,000 customers added a new cloud and more than 4,500 of those customers added two or more clouds. And we continue to see strong momentum in Data Cloud, which remains one of our fastest growing organic innovation. In Q2, our number of paid customers grew 130% year-over-year, and the number of customers spending more than $1 million annually, nearly doubled. Q2 revenue attrition ended the quarter at around 8%, in line with recent quarters. We are continuing to drive leverage across our business with Q2 non-GAAP operating margin of 33.7%, a record, up more than 200 basis points year-over-year, driven by top line outperformance and expense discipline. And we are driving strong cash flow due to our profitable growth trajectory. Q2 operating cash flow was $892 million, up 10% year-over-year. Q2 free cash flow was $755 million, up 20% year-over-year. Turning to Remaining Performance Obligation, RPO, which represents all future revenue under contract. RPO ended Q2 at $53.5 billion, up 15% year-over-year. Current RPO or CRPO, ended at $26.5 billion, up 10% year-over-year in nominal currency. This includes $300 million FX headwind, which results in slightly above 11% year-over-year growth in constant currency. CRPO outperformance was driven largely by bookings execution as well as early renewal favorability. On capital return, I'm happy to say that in Q2, we executed $4.3 billion in share repurchases and issued nearly $400 million in dividends. This brings our |
1,962 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | to say that in Q2, we executed $4.3 billion in share repurchases and issued nearly $400 million in dividends. This brings our total return to shareholders in the quarter to $4.7 billion, a record high quarterly return. As a result, we now expect to more than fully offset dilution from FY '25 stock-based compensation. Now let's turn to guidance, starting with the full fiscal year '25. On revenue, we are holding our guidance of $37.7 billion to $38 billion, growth of approximately 8% to 9% year-over-year. A few items to note on our revenue guide. First, on the buying environment, we are assuming that the conditions we've been experiencing over the past few years persist. On FX, our revenue guidance continues to incorporate a $100 million FX headwind year-over-year or 30 basis points impact. We continue to expect our professional services business to be a headwind to revenue and we expect deceleration in our license revenue growth in the back half of the year. This is due to the tough compare from a very strong performance last year and the volatility of license revenue recognition. For subscription and support revenue, we still expect approximately 10% growth year-over-year in constant currency. And we expect attrition to remain generally consistent at slightly above 8% for the full year. Now turning to profitability and cash flow. On margins, as a result of our strong Q2 performance, we are raising our fiscal '25 non-GAAP operating margin to 32.8%, representing a 230 basis point improvement year-over-year. This incorporates intentional investments in growth opportunities, notably AI and Agentforce data and our core businesses. Stock based compensation is now expected to be 8.4% as a percent of revenue. The modest increase from our prior guidance is primarily a result of the mechanical ESPP reset. As a result, for fiscal year '25, GAAP operating margin guidance is now expected to be slightly below 20%, representing 530 basis points of improvement year-over-year, which includes a slight increase in restructuring |
1,963 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | below 20%, representing 530 basis points of improvement year-over-year, which includes a slight increase in restructuring charges from our ongoing cost transformation. We expect fiscal year '25 GAAP diluted EPS of $6.05 to $6.13. Non-GAAP diluted EPS is expected to be $10.03 to $10.11. As you have heard us emphasize over the last few quarters, we are focused on driving continued free cash flow expansion. As a result of our disciplined capital deployment, we are raising fiscal year '25 operating cash flow growth to be approximately 23% to 25%, inclusive of cash tax headwind. We now expect CapEx for the fiscal year to be slightly below 2% of revenue. This now results in free cash flow growth of approximately 25% to 27% for the fiscal year. Now the guidance for Q3. On revenue, we expect $9.31 billion to $9.36 billion, up 7% year-over-year in nominal and constant currency. CRPO growth for Q3 is expected to be 9% year-over-year in nominal including $100 million FX tailwind. This will result in approximately 8.5% constant currency growth. This is inclusive of the one point quarter-over-quarter headwind from the very significant deal we closed in Q3 last year. As a reminder, while we have seen more normalized bookings growth recently, CRPO will continue to be materially impacted by the cumulative effect of the previous two years of measured sales performance. For Q3, we expect GAAP EPS of $1.41 to $1.43 and non-GAAP EPS of $2.42 to $2.44. In closing, I'm very pleased with our strong execution this quarter as we continue to focus on profitable growth and optimizing free cash flow. And I want to thank our employees and our shareholders for their continued support. I hope you were able to participate in Dreamforce and see our new Agentforce platform and all of the incredible innovation happening at Salesforce, whether in person or virtually. So before we open up the call for questions, though I am going to send it back to Marc. |
1,964 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | Marc Benioff: Okay. Well, thanks so much, Amy. And congratulations again on this amazing transition and the success. And you're an awesome General Counsel, you're an even better CFO. Now we have Sabastian who's delivering the General Counsel capability sitting here at the table with us. And I can't wait to see who you're going to bring in as the next CFO. So, this next thing I wish I didn't have to say to all of you, but I'm going to because it's been -- have a heavy heart, I think all of you know that we lost two amazing Board members this quarter with Sandy and Susan. And we are all still processing our grief, we are all extremely sad and it's beyond anything that we have experienced as a company or as individuals to have to say goodbye to these two amazing people and our parts and our spirits and our souls are with them and also our condolences are with their families, amazing families, amazing people. They did so much for our company, and they were not just great Board members, not just great leaders of our industry, but they were also great friends of the company, but also personally, they did so much for me. So I'm so grateful for them, and I missed them every single day. And I'm sorry that I have to say this on the call because this is the least favorite part of what I do, but I just want to tell everyone how much I love Sandy and Susan and how much I missed them, and I'll turn it over to you, Mike.
Mike Spencer: Great. Thank you. Operator, we will take the first question please.
Operator: Thank you. First question comes from Keith Weiss, Morgan Stanley. |
1,965 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | Operator: Thank you. First question comes from Keith Weiss, Morgan Stanley.
Keith Weiss: Excellent. Thank you guys for taking the question. Congratulations on a really solid quarter. And Amy, really heartbroken see you going. It's been great working with you over the past four years as CFO. You've done an amazing job in the role. Two part question. One on sort of the growth equation for Salesforce. A lot of excitement around the Generative AI and the new AI capabilities and expanding portfolio there. We're all really excited about. There's a lot of other parts of the equation that are adding to growth, whether it's industry cloud or international expansion or multi-cloud solution. And maybe a question for Brian. can you help us understand how to build up the growth equation? Like where are you guys getting those points of growth? And when does GenAI become a more material contributor there. And then the second question is around pricing. With agents coming into the picture with productivity gains of 90% deflection rates Investors are going to worry about the number of seats being used coming down with those productivity gains, how does the pricing change to account for that? So Salesforce still get the value from these solutions on a go forward basis? Thank you. |
1,966 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | Marc Benioff: Let me open it up and then turn it over to Brian, and because you are right, like this is just a moment. And it's an exciting moment. It is all about growth, and it's all about innovation, and those are two of our specialties here at Salesforce. So I think when we think about growth for the last 25 years, I'd say we're mostly focused on selling our apps and doing the services around those. And we're going to continue to sell our apps, and we are, and you can see in the quarter, we sold a lot of apps. And not just selling our apps, but also we're selling our Data Cloud as well. And now we're selling our agents. And not just as core platforms, but also through our verticals, which have been some of our highest performing capabilities in the company. And you're also right that there are international regions that are growing at incredible rates. And we see that in Asia. And we also see that in other parts of the world as well, where we continue to see like this double-digit growth. And that has been very inspiring to us. So it's really a combination of these three things. The total transformation of the technology stack -- the verticalization of that stack and that international growth is three really core levels of growth, in my mind, I'm going to turn it over to Brian to give you the detail. And then number two, on pricing. When you think about -- when you think about apps and you think about humans, because humans use apps, not in all cases. So for example, the Data Cloud is a consumption product. The Commerce Cloud is a consumption product. Of course, the e-mail product, Marketing Cloud is a consumption product. Heroku is a consumption product. So of course, we've had non-human consumption-based products for quite a long time at Salesforce. But in this idea of agents, when -- I'll just give you my own personal goals. So I'm not giving any guidance here. My goal is that by the end of fiscal year '26 that we will have a billion agents. Already in just looking at the number of consumers identified |
1,967 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | by the end of fiscal year '26 that we will have a billion agents. Already in just looking at the number of consumers identified just in the trials that we have going on, we have like 100 million identified or more. Okay. call it, 200 million. But the funny thing is, of course, it's only one agent. But let's just think it's like a manifestation of all these agents talking to all these consumers. And then when we look at pricing, it will be on a consumption basis. And when we think about that, we think about saying to our customers, and we have, it's about $2 per conversation. So, that is kind of how we think about it, that we're going to have a lot of agents out there, even though it's only one agent. It's a very high margin opportunity, as you can imagine, and we're going to be reaching -- look, you have to think about these agents are like, this is the new website. This is your new phone number. This is how your customers are going to be connecting with you in this new way, and we're going to be helping our customers to manage these conversations. And it's probably a per conversational charge as a good way to look at it or we're selling additional consumption credits like we do with our Data Cloud. So it's a very exciting moment, and I'll turn it over to Brian as well. |
1,968 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | Brian Millham: Yes, thanks for the question, Keith. And I appreciate your knowledge of all of our growth strategies here around multi-cloud deals and international acceleration, product and pricing. I think it's important not to lose track of the fact that these new innovations around Agentforce and Data Cloud and AI and make all of our core apps that much better. And even in the context of Service Cloud that you're referencing here, our customers are looking at their all-in cost of running a call center. And when you bring a technology that allows you to scale and drive efficiencies in operating that call center, and it's on our technology we're excited about those conversations because we think we get to monetize all of that incredible innovation through the all-in cost there. There are a couple of other things I think you should know about, certainly, our channel diversification as we think about scale and international business either through resellers, a big upside for us, I believe is our AWS Marketplace is a driver going forward. I mentioned in the comments earlier that three of our top 10 deals went through the marketplace. So a big opportunity there. And then maybe another one that we haven't talked as much about, but is a big focus for us as we get into the second half of this year and beyond is how do we look at managing our attrition more aggressively going forward as a way to drive growth? How do we make sure that we are driving more adoption, more feature usage, more value derived from our technology to deliver more value to customers so that they get growth off of and efficiencies using our technology? And so many inputs, you know many of them. But as Mark said, this is a new era, and we're excited about the future and the value we can deliver to our customers.
Mike Spencer: Thanks Keith. Operator, we will take next question please.
Operator: Thank you. Next up is Kash Rangan, Goldman Sachs. |
1,969 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | Operator: Thank you. Next up is Kash Rangan, Goldman Sachs.
Kash Rangan: Marc, you made my heart feel heavy as well with Sandy. You might know I used to work for Sandy a long time ago. So prayers with you. Back to the business, congrats on the quarter, Amy, unbelievable, I do not know anybody who was a Chief Legal Officer and became a successful CFO and led the company through a transformation. So you'll go down in history as a very unique person in that regard. One macro thing, Marc, you've been through so many cycles before. Do you think rate reductions and post elections, it might be more conducive selling environment at a high level? And also the micro question with AI, clearly, the debate is it going to create so much productivity that we need fewer people. Clearly, your idea is that we're going to float agents out there. But how confident are you that based on everything that you've seen so far that the world might not need more seats and that you don't have to be entirely dependent only on consumption that this might actually further penetration of seats and it might be about who is not using AI and they are going to be losers versus people that aren't using AI? So, how does this play out in your view, and you've been through the cloud battle and all that? So love your perspective, thank you. |
1,970 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | Marc Benioff: Well, thanks, Kash. And yes, our hearts are with Sandy's family and with his wife Nancy and his daughters., Thank you for saying that so much. I think -- let me just tell you two quick stories. I kind of told you one already in the script, which is we're working with this very large healthcare organization. And it's been our lifelong dream to be able to do more with this company, and they are a large Epic user. They have a huge EMR system. We do a lot of patient relationship management, which is just keeping in touch with their customers. But this is different because what happens now is -- and we all have this experience, we go get our labs done. They draw your blood, you get your numbers and then you get a number and you're in Epic, and it says, oh, this is out of range or this isn't right or this seems higher or lower than it was before. And I need to talk to my doctor right now. And after the pandemic, everyone's health anxiety is just a lot higher and doctors are just getting a lot more calls and nurses are just far more active than ever before. And what happens is, is these doctors and nurses are facing a lot of burnout. You can talk to any major healthcare organization, and we work with them all. So in this case, this is Agentforce is now resolving in this trial, 90% -- more than 90% of these patients inquiries. So you can imagine for these doctors and nurses not getting these calls, how that is, but Agentforce is more than that. It's not just saying hey, my cholesterol is higher, this is happening whatever. It also, you're saying, what's my next step? And I would like to reschedule a doctor's appointment for you, oh, I want to get lab street drawn for you in 30 days, which is a common technique that a doctor will say is, "yes, that lab that may not be accurate, let's just retest or you know what, this requires you to get an MRI or a CT scan and I've scheduled that for you. And all of that is happening through the agent. So you can imagine every healthcare company, every hospital, every |
1,971 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | for you. And all of that is happening through the agent. So you can imagine every healthcare company, every hospital, every organization of the world needing that and that is not what we do today exactly. That's not exactly where our business is. So this is a huge new opportunity for us to now come in and say, yes, we're going to do patient relationship management with our Health Cloud. And we're still going to help coordinate and communicate and connect with all your patients. But now we're also helping to just dramatically improve the productivity of your organization. Another example is very large computer hardware companies doing a major acquisition and huge customer of ours, and they're reconceptualizing their whole business, and they just want to be a very they want to just look at where do they want to be in terms of how they're selling and servicing their customers in five years. And I said to the CEO, I have spent a long time with I've known for a long time, hey, we're going to build you an agent first organization. And you're going to be agent first in sales and agent first in service, and we're going to turn you into a margin machine, and that's the goals of this implementation. And that is not a conversation that I've had with a customer for exactly like that. So yes, we're going to continue to automate their whole organization but we have to not just build them a great sales force or a service force or marketing force or commerce force, analytics force or whatever, we have to build them an Agent Force. And that is we're going from today 0% market share in agents. And obviously, our goal is to be the agent supplier to our customers, which it has to be deeply integrated into our data and our apps. Because these agents at some point are going to say, actually, I want to pass you off to a human now to talk and complete this, and there's a seamless automatic handshake between our agents and our apps because it's just one platform, by the way. So it's one database, one platform, seamless handshake. It's |
1,972 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | agents and our apps because it's just one platform, by the way. So it's one database, one platform, seamless handshake. It's one integrated system. That's a pretty big thought. And I think we can really take our customers' capabilities to a whole new level. This is just a part of technology that has never existed before. So I'm excited about this, Kash. I have always been excited about our apps and I have obviously been very excited about our Data Cloud. Now I'm very excited about the agents and how it all wraps together and how it leverages our decade of AI experience. And how our team has executed on this opportunity has just been remarkable. |
1,973 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | Mike Spencer: Thanks Kash. Operator, we will take the next question please.
Operator: Absolutely. Next is Kirk Materne, Evercore ISI.
Kirk Materne: Yes, thanks very much. And I'll echo the congrats on a nice quarter. And Amy, thanks so much for all your efforts over the last four years. It's been pleasure working with you. Marc, one of the questions I have for you is, obviously, one of the challenges with AI from an enterprise perspective has been the complexity, the security risks. You brought this up before. So how quickly can existing customers get up and running with Agent Force? And is Data Cloud a prerequisite for driving value? Or is that just something that sort of takes it to another level? Thanks. |
1,974 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | Marc Benioff: Well, it's a great question. And the CSAT scores on Agentforce right in this kind of trials have been extremely high, I think four out of five. And customers can get going almost immediately, and we're going to prove that for them at Dreamforce. And then we're going to go out there and we're going to we're going to -- through our world tours and all of our programs, which are going to be Agentforce tours, we're going to go hand-in-hand and work to implement tens of thousands of customers over the next six months. And step one was building the platform that is deeply integrated while Data Cloud makes it all a lot better, you do not need Data Cloud to make it work, but we encourage it because you're just going to get so much better accuracy. And you need this anyway and the new version of Tableau, which we've already been showing, which is awesome, is built on Data Cloud, you hit a button and it fully visualizes everything. So you have all your agents are working, your salespeople are working, your service people are working. You're sending out these e-mails. You're talking commerce on your website and then you hit a button and boom, Tableau visualizes all of it for you and it's all one integrated platform. So that's really our vision of where it's going. And I think that, that is very compelling for our customers. When we bought these companies starting with ExactTarget and Demandware and Tableau, we didn't really sure like -- even Slack, are we going to really integrate rewrites, do we really need to that loosely coupled was working really well. But now with the shift to AI, it just became clear 18 months ago, we need to hit the accelerator pedal and rewrite all these things onto the core platform because customers are going to get this incredible value by having one integrated system, and it scales from small companies to extremely large companies. And that is what I am super excited about, and we just brought all of our 500 top executives together, and we showed all of our -- how we've changed |
1,975 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | super excited about, and we just brought all of our 500 top executives together, and we showed all of our -- how we've changed all of our products, and I think everyone was just stunned and I'm looking forward to showing that at Dreamforce because I think customers will just be so motivated not only at the quality of the new apps, which are all AI-driven, but also that they're able to extend it with these incredible new capabilities, which are indeed huge growth drivers for us going forward. And by the way, also a huge points of differentiation. The last point is this, these customers they're still going to build models, but it's in our platform. They're still going to fine-tune those models in our platform. They're going to still use our AI studios and build their own prompts in our platform there -- all of it runs in our platform, and that's how they deliver this incredible capability. And if you've seen some of the architecture and graphics and how I've changed the architecture of the -- and how we talk about the company, it's really about in this one, two, three approach, the apps, the data and the agents, but it's all AI centric. It's all -- and it's not -- you're not going to have to DIY. And it just -- it is driving me a little crazy, as you probably heard, like when I meet with these customers and they think I need to build my own model, I have to train my own model after retrain and they are spending a lot of money on this craziness and it's not working. So it is a disappointment that Microsoft has convinced so many customers and others to move some of these model companies who are just regulated at this point to be in commodities that they have to be customized to stuff. It's not true. It can be done in a platform approach and it's better, easier, lower cost, and we're -- this technology will -- we are proving it and we'll show it. And if you talk to these customers who have already deployed the OpenTables, the Wileys, the Wyndham's, the RBC's, there's a lot of customers who don't want me to use their |
1,976 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | deployed the OpenTables, the Wileys, the Wyndham's, the RBC's, there's a lot of customers who don't want me to use their name, so I'm cautious. But they -- it's just very clear this is going to really dramatically make everything better. |
1,977 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | Mike Spencer: Great. Thanks Kirk. Operator, we will take our last question now please.
Operator: Thank you sir. Our last question will come from Brent Bill, Jefferies.
Brent Thill: I think everyone probably wants to understand kind of why now, what was the decision and maybe it's just simply 11 great years and ready for the next chapter, but I think everyone love to hear your perspective on your decision. And for Brian, when you look at the Americas business, you were running double-digit growth. It went to one of the lowest levels we've seen in our model around 8%. What does it take to get back to double-digit growth? Is there a saturation issue? Is this competitive? Give us a sense of kind of what you think is happening in the Americas region?
Amy Weaver: So Brent, hi. I was not expecting that question, but I'm happy to address it. And again, thank you for the very nice comments, Keith, Kash, Kurt, and please know how much I've enjoyed working with all of you, and I will certainly be on the next earnings call, and possibly the one after that as we do ourselves.
Marc Benioff: Oh, no, you definitely will. |
1,978 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | Marc Benioff: Oh, no, you definitely will.
Amy Weaver: Definitely, all right. We're not moving that fast on to the third. So we'll have plenty of time, I forgot goodbyes at that point. In terms of my decision, it has been an absolutely extraordinary 11 years, I think a journey is just a journey that anyone would be extraordinarily lucky to have. The last four years have been amazing as CFO. I really came in and I remember giving a listening tour with our shareholders, my first full month, and they told me the top two things on their minds were op margin and dilution. And I set out to see what we could do on both of those. And nearly four years later, we've raised -- we've almost doubled the operating margin. It was 17% in my first year. We're going to be close to 33% this year. We initiated a buyback program with close to 20 billion shares, not shares, sorry, $20 billion put back. And this year, we layered in a dividend program. We have dealt with all sorts of other incredible opportunities along the way. I think I've managed to pack in about four decades of CFO experiences in four years. This feels like the right time for me really focused on a very smooth transition of finding the next CFO, making sure to relax and recharge and looking at new adventures. So thank you for the question. And Brian, over to you. |
1,979 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | Brian Millham: Really a tough transition from that. Hi, Brent, thanks for the question. First of all, as you know, Americas is the biggest business we have at Salesforce and where we've had a ton of success for many, many years. I would not characterize that market is saturated. And I would not say the competition is withholding us back. I think the measured buying environment is really what's impacted the largest business we have, in particular, the transactional business and SMB business is very large in that market. And so it's going to feel the measured buying environment weighted heavily in that market. And so I would not position it that way that we're saturated at all. In fact, I think when you look at our new technology, the new innovation that's coming, the multi-cloud deals that we're bringing and a very happy customer base. I think we have a huge opportunity to go turn that business around and get it back to double-digit growth. And so big opportunity and love all the innovation that's coming out of our product and development teams because our customers need it and they're looking for us to guide them into this future. So, thanks for the question, and very much looking forward to seeing that growth back at double digits in the Americas.
Marc Benioff: Yes. Sabastian, now you've heard all these great things about our General Counsel becoming CFO, don't you think do you want to put your hat in the ring here?
Sabastian Niles: I think we're going to have some incredible internal talent, external candidates and really to get the right person to early days Salesforce and our entire system, especially all of our customers across every industry forward.
Marc Benioff: Very good. Thank you so much.
Mike Spencer: Great. Thanks Brent. Thanks everyone for joining, and we look forward to seeing you and speaking with you over the coming weeks.
Marc Benioff: Thanks all.
Operator: Once again, everyone, that does conclude today's conference. Thank you all for your participation. You may now disconnect. |
1,980 | CRM | 2 | 2,025 | 2024-08-28 17:00:00 | Salesforce, Inc. | 122,917 | Amy Weaver: Goodbye. |
1,981 | CRM | 1 | 2,025 | 2024-05-29 17:00:00 | Salesforce, Inc. | 122,917 | Operator: Welcome to Salesforce's Fiscal 2025 First Quarter Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session [Operator Instructions]. I would now like to hand the conference over to your speaker, Mike Spencer, Executive Vice President of Finance and Strategy and Investor Relations. Sir, you may begin.
Mike Spencer: Thanks, and good afternoon. Thanks for joining us today on our fiscal 2025 first quarter results conference call. Our press release, SEC filings and a replay of today's call could be found on our Web site. Joining me on the call today is Marc Benioff, Chair and CEO; Amy Weaver, President and Chief Financial Officer; and Brian Millham, President and Chief Operating Officer. As a reminder, our commentary today will include non-GAAP measures, reconciliations of our GAAP and non-GAAP results and guidance can be found in our earnings materials and press release. Some of our comments today may contain forward-looking statements that are subject to risks, uncertainties and assumptions, which could change. Should any of these risks materialize or should our assumptions prove to be incorrect, actual company results could differ materially from these forward-looking statements. A description of these risks, uncertainties and assumptions and other factors that could affect our financial results is included in our SEC filings, including our most recent report on Forms 10-K, 10-Q and any other SEC filings. Except as required by law, we do not undertake any responsibility to update these forward-looking statements. And with that, let me hand the call over to Marc. |
1,982 | CRM | 1 | 2,025 | 2024-05-29 17:00:00 | Salesforce, Inc. | 122,917 | Marc Benioff: Thanks so much, Mike. I'm really excited for the call today, because there's two things that I'm really been looking forward to talking about. First is our incredible financial transformation as you can see from the numbers today and the second is the incredible work that's happening with artificial intelligence. Look, first of all, in Q1, we delivered $9.13 billion in revenue, up 11% year-over-year in both nominal and constant currency. Subscription and support revenue grew at 12% year-over-year and 13% in constant currency. And for the 11th year in a row, Salesforce is still ranked the number one provider worldwide by market share based on the latest IDC software tracker. I mean, that really gets to a core part of our technology transformation that I'm going to get to, which is the transformation to AI. And because we are the number one CRM provider, we're now managing more than 250 petabytes of data for our customers. This is going to be absolutely critical as they move into artificial intelligence. And now also let's turn to our financial guidance. For fiscal year '25, we're maintaining our revenue guidance of $37.7 billion to $38 billion, growth of 8% to 9% year-over-year. And we now expect fiscal year '25 subscription and support revenue growth to be approximately 10% year-over-year in constant currency. As you can see from our results, we remain committed to profitable growth at scale, and I would also say incredible cash flow. And then continue to expect fiscal year 2025 non-GAAP operating margin of 32.5%, a 200 basis point improvement year-over-year. I'm extremely proud of our team's focus and determination to deliver this world class financial result, including this cash flow and profitability in the quarter. And Brian and Amy will discuss Q1 performance in much greater detail. As I said, I couldn't be more excited about the opportunity ahead for Salesforce, not only with these incredible financial results but in the incredible transformations that we are leading with our customers in |
1,983 | CRM | 1 | 2,025 | 2024-05-29 17:00:00 | Salesforce, Inc. | 122,917 | only with these incredible financial results but in the incredible transformations that we are leading with our customers in artificial intelligence. Every company in the world across every industry is being transformed by AI in the next few years. And when you look at the power of AI, you realize the models and the UI are not the critical success factors, it's not critical where the enterprise will transform. There are thousands of these models, some open source and some closed source models, some built with billions, some with just a few dollars, most of these will not survive. They are just commodities now and it's not where the intelligence lies. And they don't know anything about a company's customer relationships. Each day, hundreds of petabytes of data are created that AI models can use for training and generating output. But the one thing that every enterprise needs to make AI work is their customer data, as well as the metadata that describes the data, which provides the attributes and context the AI models need to generate accurate, relevant output. And customer data and metadata are the new gold for these enterprises, and Salesforce now manages, as I mentioned, 250 petabytes of this precious material. We have one of the most and largest repositories of front office enterprise data and metadata in the world. And every day more companies are adopting Salesforce as their front office, bringing all their structured and unstructured data into our platform. Nearly half of our top 50 wins in the quarter included six or more of our clouds. That really speaks to the comprehensive nature of our strategy. It's incredible. And many of these customers have essential business and customer data that exists outside of Salesforce that's trapped in thousands of apps and silos and it's disconnected. That's why we're seeing this incredible momentum with our Data Cloud, our fastest growing organic and our next $1 billion cloud. It's the first step to becoming an AI enterprise. Data Cloud gives every company a single |
1,984 | CRM | 1 | 2,025 | 2024-05-29 17:00:00 | Salesforce, Inc. | 122,917 | and our next $1 billion cloud. It's the first step to becoming an AI enterprise. Data Cloud gives every company a single source of truth and you can securely power AI insights and actions across the entire Customer 360. Now let me tell you why I'm excited about Data Cloud and why it's transforming our customers and how it's preparing them for this next generation of artificial intelligence. Data Cloud was included in 25% of our $1 million plus deals in the quarter. We added more than 1,000 data cloud customers for the second quarter in a row. 8 trillion records were ingested in the Data Cloud in the quarter, up 42% year-over-year and we processed 2 quadrillion records, that's a 217% increase compared to last year. Over 1 trillion activations drove customer engagement, which is a 33% increase year-over-year. This incredible growth of data in our system and the level of transactions that we're able to deliver, not just in the core system but especially in data cloud is preparing our customers for this next generation of AI. And last month, we created a Zero Copy Partner Network with partners, including Amazon, Databricks, Google, IBM, Microsoft and Snowflake, so customers can access this live data from anywhere in data cloud without copying or moving it. It's the engine of our future growth and this is the engine of our future artificial intelligence growth as well. As you know, for years, we've delivered predictive AI across all our clouds with Einstein. Einstein is generating hundreds of billions of predictions per day, trillions per week. Now, we are working with thousands of customers to power generative AI use cases with our Einstein Copilot, our Prompt Builder, our Einstein Studio, all of which went live in the first quarter. And we've closed hundreds of Copilot deals since this incredible technology has gone GA. And in just the last few months, we're seeing Einstein Copilot develop higher levels of capability. We are absolutely delighted and could not be more excited about the success that we're seeing with |
1,985 | CRM | 1 | 2,025 | 2024-05-29 17:00:00 | Salesforce, Inc. | 122,917 | higher levels of capability. We are absolutely delighted and could not be more excited about the success that we're seeing with our customers with this great new capability. Saks, a leader in the luxury fashion market, part of Hudson’s Bay, went all in on Salesforce in the quarter. CEO, Marc Metrick, is using AI to create more personal experiences for every customer touchpoint across their company. And with our Einstein 1 platform and Data Cloud, Saks can unify and activate all its customer data to power trusted AI. Another great story is FedEx, a company that we all know, bringing together previously siloed information. It's the leader in getting packages delivered quickly. And of course, how are we going to now deliver a more productive, more efficient and more profitable FedEx. The SF -- the Salesforce data and app and AI capabilities generate expense savings. This is the core efficiency while growing and accelerating top line revenue. This is the effectiveness that we're delivering for FedEx. This efficiency includes next best action for sellers, automated lead nurturing, Slack for workflow management, opportunity scoring, a virtual assistant, AI and unstructured data for delivering content to sales and customer service. And when we think about effectiveness, we see our Journey Builder delivering hyper personalization, integrating customer experiences across service, sales, marketing, the ability to tailor and deliver customer experiences based on a Customer 360 view. When we look at this incredible next generation of capability we've delivered at FedEx, gone now are these days of static business rules that leave customers dissatisfied asking, do they not know that I am a valued customer of FedEx? Now FedEx has not only the power of the Customer 360, but the power of AI to unlock so much more commercial potential by conducting an orchestra of commercial functions that never played well together before. You have a significant opportunity now with Salesforce and this incredible platform that sellers can |
1,986 | CRM | 1 | 2,025 | 2024-05-29 17:00:00 | Salesforce, Inc. | 122,917 | well together before. You have a significant opportunity now with Salesforce and this incredible platform that sellers can convince companies to transform all of their incredible capabilities to deliver another level of profitability. I think stories like that are driving our company forward and it's all driven by the power of artificial intelligence. Another story I'm really excited about in the quarter is Air India, transformed with data and AI. If you don't know about Air India, they are an incredible airline who's acquired multiple airlines to create this amazing platform for India's growth. And with Data Cloud, Air India is unifying Data Cloud across loyalty, reservations, flight systems and data warehouses. They have a single source of truth to handle more than 550,000 service cases each month. And now with Einstein, we are automatically classifying and summarizing cases and sending that to the right agent with recommended next steps and upgrading in high value passenger experiences. Even when things happen like a flight delay, our system is able to immediately intervene and provide the right capability to the right customer at the right time. All of that frees up agents to deliver more personal service and create more personal relationships, a more profitable, a more productive, a more efficient Air India, a company that's using AI to completely transform their capability. Well, we're looking forward to talking to you more in this call about these incredible transformations, the financial transformation that we've gone through with these incredible cash flow and margin numbers, and this incredible artificial intelligence transformation. And now over to Brian. |
1,987 | CRM | 1 | 2,025 | 2024-05-29 17:00:00 | Salesforce, Inc. | 122,917 | Brian Millham: Thanks, Marc, and thanks to all of you for joining us today. I also want to thank the team for their hard work this quarter. As Marc said, we're incredibly well positioned for this AI transformation. We're the number one AI CRM innovating at a pace I've not seen in my entire career. I could not be more excited about the opportunity ahead. We're seeing good demand as AI technology rapidly evolves and customers recognize the value of transforming into AI enterprises. CEOs and CIOs are excited about the opportunity with data and AI and how it can impact their front office operations. We continue to focus on our growth levers of multi-cloud deals, international expansion, industry solutions, the Salesforce ecosystem and of course, the data and AI innovations across all of our clouds. Now let me briefly address the buying environment. We continue to see the measured buying behavior similar to what we experienced over the past two years and with the exception of Q4 where we saw stronger bookings. The momentum we saw in Q4 moderated in Q1 and we saw elongated deal cycles, deal compression and high levels of budget scrutiny. In addition, in Q1, as part of our ongoing transformation, we made some intentional changes in our go-to-market organization to drive long term productivity and create better customer experiences, which also played a role in the softer bookings performance. At the same time, we are seeing strong momentum in various parts of our business, particularly Data Cloud and industries. And we continue to drive our core growth levers, multi-cloud deals, again, were a highlight for us in the quarter with six of our top 10 deals, including six or more clouds, showing the depth and relevance of our portfolio. Let me give you just one example of a company that is using Salesforce across the entire front office. CrowdStrike, a leading cybersecurity company and a longtime customer of Salesforce added Data Cloud, Marketing Cloud, Commerce Cloud, Revenue Cloud and MuleSoft in the quarter. CrowdStike |
1,988 | CRM | 1 | 2,025 | 2024-05-29 17:00:00 | Salesforce, Inc. | 122,917 | customer of Salesforce added Data Cloud, Marketing Cloud, Commerce Cloud, Revenue Cloud and MuleSoft in the quarter. CrowdStike already relied on Einstein 1 sales and service and Slack, and now they'll use Data Cloud to pull together new and trap data from data lakes to build a 360 degree view of their customers, helping them align sales and marketing efforts to drive growth. They're also leveraging MuleSoft with incredible results. MuleSoft has helped CrowdStrike accelerate project delivery by 30% and decreased maintenance costs by 20%. Salesforce is now the backbone of CrowdStrike driving every aspect of CrowdStrike's operation and limiting the reliance on complex siloed third party applications. As Marc said, we're seeing impressive growth in our Data Cloud business. In the quarter, 25% of our deals over $1 million included Data Cloud. It's obviously an important growth lever for us as it brings all of our clouds to life and make them all better. And we continue to see momentum in Einstein AI with wins at Turtle Bay Resort, Autodesk and Langley Federal Credit Union as companies transform into AI enterprises. One example is Siemens. Siemens lacked a centralized destination for customers to easily choose the right products and buy on demand. To simplify the buying experience for customers, Siemens worked with Salesforce to develop and launch its Xcelerator marketplace, an AI-powered digital marketplace built on Einstein 1 commerce, providing AI-generated product pages, smart recommendations and self service ordering, and they did it all in just six months. And obviously, AI is not just for our customers, as part of our own transformation, we continue to adopt AI inside Salesforce. Under the leadership of our Chief People Officer, Natalie Scardino and our Chief Information Officer, Juan Perez, we've integrated Einstein right into Slack, helping our employees schedule, plan and summarize meetings and answer employee questions. Einstein has already answered nearly 370,000 employee queries in a single quarter. And |
1,989 | CRM | 1 | 2,025 | 2024-05-29 17:00:00 | Salesforce, Inc. | 122,917 | meetings and answer employee questions. Einstein has already answered nearly 370,000 employee queries in a single quarter. And in our engineering organization, our developers now save more than 20,000 hours of coding each month through the use of our AI tools. These innovations are helping us drive continued efficiencies across the business and accelerate our product road maps. We have great momentum with Slack, which again was included in nearly half of our top 50 deals in the quarter. We also launched Slack AI in February, an amazing innovation that provides recap, summaries and personalized search right within Slack. I personally have been using it every day to get caught up on the conversations happening in every channel, and we've seen great traction with our customers with this product, that our customers have summarized over 28 million Slack messages since its launch in February. Rocket Mortgage added Slack AI in the quarter to help its employees save time and close loans faster. They've also leveraged external Slack channels to collaborate with partners more effectively and efficiently. And they've experienced a 60% faster turnaround speed from working with their customers and partners in Slack. On the international front, we had a solid quarter. In LATAM, we had great wins at [Celio] and Grupo DPSP; and EMEA, great wins at IHG Hotels and Resorts and John Lewis partnership; and in APAC, Atlassian and Bank of Philippines Islands were wins in the quarter. We saw particular strength in our Japan business with wins at Seibu Prince Hotels worldwide and Hitachi. Industries was another growth lever for us in the quarter, half of our top 10 deals included one of our industry clouds. A great example in the quarter was Paychex, a digital HR leader. By leveraging Financial Service Cloud and Data Cloud, Paychex is able to unify their data, building better insights and creating a single view of each customer. And using Einstein 1 sales and service, Paychex will be able to proactively manage insurance renewals, which |
1,990 | CRM | 1 | 2,025 | 2024-05-29 17:00:00 | Salesforce, Inc. | 122,917 | of each customer. And using Einstein 1 sales and service, Paychex will be able to proactively manage insurance renewals, which means agents can proactively reach out and surface renewal opportunities during any touchpoint with the customer, 30, 60 or 90 days in advance driving an increased rate of renewals. And in the public sector, the City of Los Angeles chose Salesforce to modernize how the city's 4 million residents request city services using its MyLA311 system. The city will use government cloud and other Salesforce solutions to integrate AI assistance into MyLA311 and modernize its own constituent facing services, giving residents more self service options and improving service reliability and responsiveness. Our partner ecosystem also continues to be a growth lever for us. I'm especially excited about our deep partnership with Amazon as a growth driver for -- as we move forward into Q2 and beyond with Salesforce products now available on the AWS marketplace. Joint customers are able to expedite their deployments through faster buying and billing experiences and flexible budgeting options. In closing, I want to echo Marc in acknowledging the hard work of the team, our continued success has been made possible by our amazing employees, customers, partners and trailblazers. And with that, I will now pass it off to Amy. |
1,991 | CRM | 1 | 2,025 | 2024-05-29 17:00:00 | Salesforce, Inc. | 122,917 | Amy Weaver: Great. Thanks, Brian. Q1 represents another quarter of continued discipline and transformation across the business. I am very proud of all of our employees for their continued dedication and hard work. Now let's go straight to the results. For the first quarter, revenue was $9.13 billion, up 11% year-over-year in nominal and constant currency. The result was at the lower end of our guided range due to continuing pressures on professional services, some license revenue volatility and the continued measured buying environment. Subscription and support revenue grew 12% year-over-year in nominal and 13% in constant currency. As mentioned on our last call, this included a tailwind from the timing of license revenue in MuleSoft and Tableau related to Q4 deals and a 1 point benefit from the leap year. From a geographic perspective, in Q1, Americas revenue grew 11%, EMEA grew 10% or 9% in constant currency and APAC grew 14% or 21% in constant currency. We saw strong new business growth in Japan, India and Canada, while the US, parts of LATAM and EMEA, were constrained. From an industry perspective, in Q1, public sector and financial services both performed well, while high tech and retail and consumer goods were more constrained. Our new offerings for small and medium businesses, Starter and Pro Suite, which are ready to use simplified solutions with AI built in, are building momentum. In Q1, we added another 2,300 new logos to these products. Since Starter's launched last year, we've seen customers upgrade to our recently launched Pro Suite and even to our Enterprise and Unlimited additions. Q1 revenue attrition ended the quarter at around 8%, in line with recent quarters. I'm also very pleased that our non-GAAP operating margin again finished strong at 32.1%, up 450 basis points year-over-year. And our profitable growth trajectory continues to drive strong cash flow generation. Q1 operating cash flow was $6.25 billion, up 39% year-over-year. Q1 free cash flow was $6.1 billion, up 43% year-over-year. Cash |
1,992 | CRM | 1 | 2,025 | 2024-05-29 17:00:00 | Salesforce, Inc. | 122,917 | operating cash flow was $6.25 billion, up 39% year-over-year. Q1 free cash flow was $6.1 billion, up 43% year-over-year. Cash flow did benefit modestly from the timing of cash tax payments. Now to put this cash flow performance in context, we have more than tripled the cash we generated just four years ago. Turning to remaining performance obligation, RPO, which represents all future revenue under contract. We ended Q1 at $53.9 billion, up 15% year-over-year. Current remaining performance obligation, or CRPO, ended at $26.4 billion, up 10% year-over-year in nominal. Now this includes a $200 million FX headwind, which results in more than 10% year-over-year growth in constant currency. CRPO growth was primarily driven by resilience in our core products. However, as Brian mentioned, we did continue to experience measured buying behavior, which is reflected in the moderated Q1 bookings. On capital return, we were incredibly proud to pay out our first ever quarterly dividend of $0.40 per share for a total of $388 million. And altogether in Q1, we returned more than $2.5 billion in the form of share repurchases and dividends. This brings our total cash return since the inception of our capital return programs to more than $14 billion. We remain committed to continued capital return and anticipate declaring our quarterly dividend next month subject to Board approval. Now let's turn to guidance, starting with full fiscal year '25. A few items to note. First, on the buying environment, we are assuming that the conditions we saw in Q1 continue throughout our fiscal year. On FX, our revenue guidance continues to incorporate a $100 million FX headwind year-over-year or about a 30 basis points impact. We also continue to expect our professional services business to be a headwind to revenue with deal compression and customers delaying or slowing projects. However, we also continue to see strong demand for Data Cloud and multi-cloud adoption. We're seeing benefits from recent pricing and packaging changes and we're seeing |
1,993 | CRM | 1 | 2,025 | 2024-05-29 17:00:00 | Salesforce, Inc. | 122,917 | for Data Cloud and multi-cloud adoption. We're seeing benefits from recent pricing and packaging changes and we're seeing strong industries adoption. These factors are also included in our guide. As a result, on revenue, we are maintaining our guidance range of between $37.7 billion to $38 billion, growth of 8% to 9% year-over-year. We now expect subscription and support revenue growth to be approximately 10% year-over-year in constant currency. And we expect attrition to remain generally consistent at slightly above 8% for the full year. As a reminder, starting in fiscal '25, we include Slack invoice in the metric, which we expect to create a modest headwind. Now turning to profitability and cash flow. On margins, we continue to expect fiscal year '25 non-GAAP operating margin of 32.5%, representing a 200 basis point improvement year-over-year, following the significant increase last year. This incorporates intentional investments in targeted growth opportunities, notably AI, data and our core businesses. Stock based compensation is now expected to be just above 8% as a percent of revenue. The modest increase from our prior guidance is primarily a result of lower voluntary employee attrition in Q1 than in recent years. As a result, for fiscal year '25, GAAP operating margin guidance is expected to be approximately 20%, representing 550 basis points of improvement year-over-year. We expect fiscal year '25 GAAP diluted EPS of $6.04 to $6.12. Non-GAAP diluted EPS is expected to be $9.86 to $9.94. As a result of our continued margin expansion, we are delivering world class cash flow. And we continue to expect fiscal year '25 operating cash flow growth to be approximately 21% to 24% inclusive of cash tax payment headwinds. We also continue to expect CapEx for the fiscal year to be slightly below 2% of revenue. This results in free cash flow growth of approximately 23% to 26% for the fiscal year. Now to guidance for Q2. On revenue, we expect $9.2 billion to $9.25 billion, up 7% to 8% year-over-year in nominal and |
1,994 | CRM | 1 | 2,025 | 2024-05-29 17:00:00 | Salesforce, Inc. | 122,917 | year. Now to guidance for Q2. On revenue, we expect $9.2 billion to $9.25 billion, up 7% to 8% year-over-year in nominal and approximately 8% in constant currency. CRPO growth for Q2 is expected to be 9% year-over-year in nominal, including a $200 million FX headwind, resulting in 10% constant currency growth. This includes ongoing headwinds from professional services. For Q2, we expect GAAP EPS of $1.31 to $1.33 and non-GAAP EPS of $2.34 to $2.36. In closing, I want to emphasize that, I am incredibly proud of the company's commitment to disciplined strategic investments and continued productivity gains to drive strong margin expansion and cash flow growth at scale. And of course, I want to thank our employees and our shareholders for their continued support. Now Mike, let's open up the call for questions. |
1,995 | CRM | 1 | 2,025 | 2024-05-29 17:00:00 | Salesforce, Inc. | 122,917 | Mike Spencer: Thanks, Amy. And thanks, everyone, for joining. When we go to Q&A, we ask that each participant limit themselves to one question. And with that, Rob, we’ll take the first question.
Operator: [Operator Instructions] Your first question comes from the line of Keith Weiss from Morgan Stanley.
Keith Weiss: I appreciate all the detail on sort of the growth drivers and what you guys are excited about in the business. But the quarter did come in below your expectations for CRPO growth, and we all look at that as a forward indicator. But you're not taking down the full year revenue guidance. So I was hoping you could help us get comfortable on why that's not leaving risk on the table and why you guys feel comfortable that original fiscal year '25 guide is still appropriate? Like why not take it down and make it more conservative and ensure that we can get back to beat and raise quarters on a go-forward basis? |
1,996 | CRM | 1 | 2,025 | 2024-05-29 17:00:00 | Salesforce, Inc. | 122,917 | Amy Weaver: I'll take that one. Let me start by saying that there are many factors we have to consider within our guidance. And all in, based on what we're seeing at this time, we continue to believe that we will be within the range we guided. Now any guide is a balancing act, and as Brian called out, we are continuing to see this measured buying behavior. It's really been very consistent for the last two full years at this point with a possible exception of Q4 where we did see stronger bookings. And you can see the impact of that environment on our Q1 numbers, there's no question about that. PROserve also continues to see more and more pressure as customers are really just looking for shorter duration projects. However, this is really balanced by the demand that we are seeing in our products, and that remains strong. We tend -- we continue to see good demand on multi-cloud adoption. We're seeing benefits from pricing and packaging changes that we have rolled out over the past year. We're seeing very healthy adoption around our industry projects. I also should point out that our attrition rate remains very healthy. Customers are continuing to rely on Salesforce to run their businesses and they'll continue to do that. So when I step back and really take a holistic view of the full year, we do feel confident that we will be within our guidance range. |
1,997 | CRM | 1 | 2,025 | 2024-05-29 17:00:00 | Salesforce, Inc. | 122,917 | Marc Benioff: I'd like to add. I really continue to focus on exactly like Amy says, this incredible transformation that we've seen with the financials. And obviously, we're delivering some quarter -- some numbers this quarter that were beyond our imagination just a few quarters ago. Another point of optimism is, not just what Amy said, but also we see this incredible transformation happening with our customers. And we all know the AI transformation as many transformations. It's a transformation of how we're interacting with software. It's also a transformation of these algorithms, what we call these models, that the AI is built on. And it's a transformation of the data that's used by whether it's consumers or enterprises to deliver this incredible next level of intelligence. But for enterprises, we know that this customer data and this metadata is really the new gold for these enterprises, and it's a huge driver of growth for our business. We all saw the report from McKinsey. 75% of the value of Gen AI use cases is in the front office. And everybody knows Salesforce is the leader in front office software, that's our fundamental premise for our growth going forward. That we're already managing 250 petabytes of data and metadata that's going to be used to generate this incredible level of intelligence and artificial and capability to deliver for our customers a level of productivity and profitability they've just never been able to see before. And at the heart of that is going to be our Data Cloud. And we've seen this Data Cloud -- well, we've seen this deliver for our customers an incredible level of capability in just the short period that we've made it available. It's already included in 25% of our million dollar-plus deals, as I mentioned, and more than 1,000 Data Cloud customers in the second quarter again, that's our second quarter row. When we look at a quarter where we see huge growth of a new product, it really sets us up for continued delivery of growth of that incredible technology. But what's the cool |
1,998 | CRM | 1 | 2,025 | 2024-05-29 17:00:00 | Salesforce, Inc. | 122,917 | of a new product, it really sets us up for continued delivery of growth of that incredible technology. But what's the cool thing about Data Cloud is it's connected to every single one of our clouds. So it's making our Sales Cloud better, our Service Cloud better, our Marketing Cloud or Commerce Cloud, every aspect of Salesforce is better now with this incredible new technology. Another key part of it is, as I mentioned, 8 trillion records were ingested into Data Cloud in the first quarter, that was up 42% year-over-year and 2 quadrillion records were processed, that's up 217% year-over-year, and over 1 trillion activations driving customer engagement, up 33% year-over-year. All of that means that we're preparing our customers for a level of data capability that's going to give them this next capable -- capability of artificial intelligence. And last month, we created the Zero Copy Partner Network with Amazon, Databricks, Google, IBM, Microsoft and Snowflake that federates our Data Cloud with all these amazing data sources. Look, we really are focused on two things in our company. One is this incredible financial transformation that we've all gone through with you in the last year. The second one is this incredible transformation to artificial intelligence, which is going to be based on data. I don't think any company is more well positioned for the future of artificial intelligence and also delivering the kind of metrics that our stakeholders are going to want in Salesforce. |
1,999 | CRM | 1 | 2,025 | 2024-05-29 17:00:00 | Salesforce, Inc. | 122,917 | Operator: Your next question comes from the line of Brad Sills from Bank of America.
Brad Sills: I appreciate the commentary on the impact from the tough macro. We're certainly seeing that across the group. Brian, you mentioned also perhaps some impact here from go-to-market changes, which is, I guess, shouldn't be a big surprise given all that's going on at Salesforce right now. I wonder if you could just articulate a little bit on that. What are those changes? Is this the kind of situation where it's just some short term impact that could benefit the sales productivity over the longer term?
Brian Millham: And you're exactly right. These are changes that we typically make in the first quarter. It's the most obvious time to make those changes when you start out a new year. These changes are actually intended to be productivity drivers for the future, absolutely right. We want to get a line behind our go-to-market strategy around buyer to make sure that we're aligned to support our customer scale that we can really support our multi-cloud strategy going forward to ensure our customers know exactly what we can do to support them across our entire product portfolio. And some of the changes that we made were exactly for that reason, how do we ensure that we are aligned behind that strategy to ensure we can go faster in Q2, Q3 and Q4. So you're absolutely right. The changes, while impactful in Q1, are short term and we expect to see productivity gains from them going forward.
Operator: Your next question comes from the line of Brent Thill from Jefferies.
Brent Thill: Just from a geographic perspective, Europe looked like it was a little weaker. I'm curious if that's where you saw the pronounced weakness in EMEA or was this pretty consistent across most of the geographic regions? |
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