Q2 2025 Salesforce Inc Earnings Call
Speaker Change: Thank you for your patience and please continue to stand by.
Unknown Executive: Johnson's call. At this time, we're meeting additional participants, and we'll be starting shortly. Thank you for your patience, and please continue to stand by. .
Kemble Collin: Collins, Karl. At this time, we are meeting additional participants and we'll be starting shortly. Thank you for your patience and please continue to stand by.
Unknown Executive: Welcome to Salesforce's fiscal 2025 second quarter results conference call. If you have a question today.
Speaker Change: Welcome to Salesforce's fiscal 2020-25 second quarter of those conference calls. If you have a question today, please press star one on your telephone feedback. I would now like to know the conference over to your speaker, Mike Spencer, Executive Vice President of Finance and Strategy and Investor Relations. Very may begin.
Unknown Executive: Good afternoon, and thanks for joining us today on the Fiscal 2025 second quarter results conference call. Our press release, SEC violence in a replay of today's call can be found on our website.
Speaker Change: Good afternoon and thanks for joining us today on the fiscal 2025 Second Quarter Results Conference Call.
Marc Benioff: 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. Reconciliation between our GAAP and non-GAAP results and guidance can be found in our earnings materials and press release.
Speaker Change: Our press release SEC findings in a replay of today's call can be found on our website.
Speaker Change: 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-gap measures. Reconciliation between our gap and non-gap results and guidance can be found in our next materials and press release.
Marc Benioff: Some of our comments today may contain forward-looking statements that are subject to risk, 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?
Speaker Change: Some more comments today may contain forward-looking statements that are subject to risk on certain these assumptions which could change.
Speaker Change: Today, these risk materialized or should our assumptions prove to be incorrect, actual company results could materially differ.
Marc Benioff: A description of these risks, uncertainties and assumptions, and other factors that could affect our financial results, is included in our SEC filings, including the 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.
Speaker Change: from these four looking statements. A description of these risks on certain easing assumptions and other factors that could affect our financial results is included in our SEC violence, including most recent report on forms 10K, 10K and any other SEC violence.
Marc Benioff: And with that, let me hand the call over to Marc. All right, thanks so much, Mike, and thanks for 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.
Marc: 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.
Marc: Alright, thanks so much, Mike, and thanks for 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 DreamBors.
Marc: So, looking forward to that and...
Marc Benioff: So, look, a year ago on this call, we talked about two amazing transformations. We were transforming Salesforce for, as we were talking about the short and 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.
Speaker Change: We are just going to have a great call here, so look, a year ago on this call, we talked about two amazing
Speaker Change: Transformation. We're transforming sales force for, as we're talking about the short and long term, which was really code words for really addressing our financials, but really looking at this incredible AI.
Speaker Change: Opportunity, and...
Speaker Change: You know, 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 position we are for the future.
Marc Benioff: And you can see it in our numbers with strong performance across revenue, cash flow, margin, and CRPO. The numbers are, you know, beyond my expectation, and the quarter, you can see that is pretty awesome. And you can also see them, the incredible innovation or a product and engineering teams are delivering the success of our customers.
Speaker Change: and you can see it on our numbers with strong performance across revenue, cash flow, margin and CRPO, the numbers are beyond my expectation and the quarter you can see that is pretty
Speaker Change: Awesome and you can also see them the incredible innovation or a product and engineering teams are delivering the success of our customers.
Marc Benioff: And we're going to talk about a whole different kind of sales force 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 the manifestation of our decade of AI leadership, which is Asian force. Now, just in just 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 Agentforce.
Speaker Change: 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.
Speaker Change: Now just in just a few weeks.
Speaker Change: 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 of more than 45,000 trailblazers in San Francisco in this year. Dreamforce is really becoming an agent force. And I'll tell you, it's a funny thing about Agent Force, even.
Marc Benioff: 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 agent force 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, you know, to have outstanding culinary shaft, and maybe we can bring in some great entertainment for all of you to encourage you all to come.
Speaker Change: 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 AgentPorse because we're all getting so excited about it.
Speaker Change: 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 Dream Force.
Speaker Change: and I told him I pay for, you know, to have outstanding culinary shaft and maybe we can bring in some great entertainment for all of you to concurred you all to come, so I just gave him a huge budget.
Marc Benioff: 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 agent force 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 using our applications.
Speaker Change: 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. I'm going to explain that in a second because
Speaker Change: We're going to show our new Agent Force agents and how we've reimagined enterprise software for this new world of autonomous AI.
Karl Collins: Good afternoon, and thanks for joining us today on the 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-gap measures. Reconciliation between our gap and non-gap results, and guidance can be found in our earnings materials and press release.
Speaker Change: And every customer, I'm going to try to get every customer who comes to Dreamforce to turn agents on while they're there.
Marc Benioff: You know that, OK. 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, you know, 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 to get their data and metadata integrated and then federate to other data sources.
Speaker Change: 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.
Speaker Change: and we've been talking now for the last couple of years about how we've really built this.
Speaker Change: Phenomenal Data Cloud that has really become...
Speaker Change: You know, I would say, you know, our fastest growing, most exciting.
Karl Collins: Some of our comments today may contain forward-looking statements that are subject to risk uncertainties and assumptions which could change. Should any of these risk 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 the most recent report on forms 10K, 10Q and any other SEC filings. Except as required by law, we do not undertake any responsibility to update these forward-looking statements.
Speaker Change: product ever up until one that we're met at talk about, which is to help our customers amalgamate all the data that they need to really get their AI act in order to get their data and metadata.
Marc Benioff: And then this critical third tier, which this is the first call that we've ever talked about it, which is these agents in this idea that you're not just can have sales agents and service agents 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 Agent Force because 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."
Speaker Change: Integrated and then fed away to other data sources and then this critical third tier, which this is the first call we've ever talked about it, which is these agents.
Speaker Change: and this idea that you're not just gonna have sales agents and service agents.
Speaker Change: Probably Red, heard maybe song CBC.
Speaker Change: We're building the agents for work day and we're going to be building custom agents for so many of you as well with agent force because it is a development platform as well as this incredible capability to radically extend your sales and service organizations.
Marc Benioff: And with that, let me hand the call over to Marc. All right, thanks so much, Mike, and thanks for 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.
Speaker Change: 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.
Marc Benioff: 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 company, isn't it? It's going to augment our employees, make us more productive, it's going to turn us, you know, into these incredible margin and revenue machines. It's going to be pretty awesome.
Marc Benioff: So look, a year ago on this call, we talked about two amazing transformations. We were transforming sales worse 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.
Speaker Change: 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.
Speaker Change: and while many customers today don't yet have agent forces, but they do have sales forces or service forces.
Speaker Change: 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 company, isn't 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.
Marc Benioff: And really, I don't think I've been more excited about the history of sales force, and now the future of sales force, and how well positioned we are for the future. And you can see it under numbers with strong performance across revenue, cash flow, margin, and CRPO. The numbers are, you know, beyond my expectation and the quarter, you can see that is pretty awesome. And you can also see them, the incredible innovation in our product and engineering teams are delivering the success of our customers.
Marc Benioff: And this is really the future, a new future that we can really envision. With this agent force platform, we're making it easy to build these powerful autonomous agents for sales, for service, or marketing, for commerce, automating the entire workflow on their own, embedding agents in the flow work and getting our customers to the agent force 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 work and getting our customers to the agent force platform.com agent future first. And with 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 Widely 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.
Speaker Change: and...
Speaker Change: This is really the future, a new future that we can really envision, and with this agent force platform, we're making it easy to build these powerful autonomous agents for sales for service from marketing, for commerce, automating the entire workflow on their own, embedding agents in the flow work, and getting our customers to the agent future first.
Marc Benioff: And we're going to talk about a whole different kind of sales force 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 the manifestation of our decade of AI leadership, which is agent force. Now, just in just 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 and San Francisco.
Speaker Change: 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 Open Table and Wiley and...
Speaker Change: and ADP and RBC and so many others.
Marc Benioff: 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 sales force to agent force 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.
Marc Benioff: And in fact you're going to hear about, I mean, at Dreamforce you're going to hear one of the very largest healthcare companies in the world has got 20 million consumers 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 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 a capability to deliver this accuracy with our customers.
Speaker Change: 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...
Speaker Change: I mean, I, I, Dreamforce, you're going to hear one of the very largest healthcare companies in the world. It's got 20 million consumers here in the United States who's resolving more than 90% of all patient in Korea's with Asian force.
Speaker Change: and their bent marking us.
Speaker Change: Significantly higher than any other competing AI platform. And that's based on some incredible AI breakthroughs that we have had.
Marc Benioff: And I told him, I pay for you know, to have outstanding culinary shaft. 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.
Speaker Change: 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.
Speaker Change: and the level of capability they are is unlike anything I think that any of us have ever seen and we've got some incredible new.
Marc Benioff: And I'm going to show our new agent force 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 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 last couple of years about how we've really built phenomenal data cloud that has really become, you know, I would say, you know, 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 orders that get their data and metadata integrated and then federate to other data sources.
Speaker Change: Techniques, especially incredible new augmented rag techniques that are delivering us.
Marc Benioff: 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. In Q2, we've delivered 9.33 billion in revenue, up 8% year over year in normal 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 has been available.
Speaker Change: The capability to deliver this accuracy with our customers in fact.
Speaker Change: One of these very large media companies that we work with a lot of...
Speaker Change: [inaudible]
Speaker Change: 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.
Speaker Change: to deploy enterprise agents and not just any enterprise agents, the highest quality, most accurate agents in the world. Now all of this...
Speaker Change: With our continued focus on trust with customer success with innovation, there's driving the results that you see the today. And in Q2 we've delivered 9.33 billion in revenue up 8% year over year in nominal and 9% in constant currency.
Marc Benioff: 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, we probably read, heard, maybe saw on CBC, we're building the agents for work day. And we're going to be building custom agents for so many of you as well with agent force because it is a development platform as well as this incredible capability to radically extend your sales and service organizations.
Speaker Change: 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 1, CRM provider by the IDC software tracker. And of course, Salesforce has been number 1, AI CRM.
Marc Benioff: Thank you for your One AI CRM. And you know, 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, and I think we just did that. If you look at our enterprise software. We're over all, we're the largest enterprise software company in the world. So we continuously growth in multi cloud deals and 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%.
Marc Benioff: 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.
Speaker Change: And, you know, 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.
Speaker Change: 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. And I think we just did that if you look at our enterprise software.
Speaker Change: Overall, we're the largest enterprise software company in the world. So, we continue to see growth in multi-cloud deals, and 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.
Marc Benioff: And it's going to radically extend[inaudible] agent future first and with 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 open table and widely and 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.
Speaker Change: 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.
Marc Benioff: We also continue to deliver on this incredible margin growth, and so many of you have guided us through that incredible transformation. So I 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 last 24 months in margin and cash flow, which also was 892 million in the quarter.
Speaker Change: We also continued the liver on this incredible margin growth and so many of you have guided.
Speaker Change: Through that incredible transformation, so I'm going to thank all of you for that.
Speaker Change: We're the second quarter, our non-bap operating margin was 33.7%.
Speaker Change: 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 of year. So now let's turn to this financial guidance.
Marc Benioff: So now let's turn to this financial guidance for the fiscal year 25. We continue to expect revenue at 37.7 to 38 billion, a growth of 8 to 9% year over year, and subscription and support revenue growth to approximately 10% year over year in constant currency. As you can see from our results, we've 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 and pleased that we're also raising our operating cash flow guidance to 23 to 25% year over year.
Speaker Change: We're in the fiscal year 25 we continue to expect revenue at 37.7 to 38 billion. A growth of 8 to 9% year over year.
Marc Benioff: And in fact, you're going to hear about I mean at Dreamforce, you're going to hear one of the very largest healthcare companies in the world has got 20 million consumers here in the United States who's resolving more than 90% of all patient inquiries with agent force and their 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 or 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 a capability to deliver this accuracy with our customers.
Speaker Change: and...
Speaker Change: Subscription and support revenue growth of approximately 10% year of year in constant currency and as you can see from our results.
Speaker Change: Weaver main commended to this very profitable growth.
Speaker Change: at this incredible level of scale. And we're raising our fiscal 25 non-gap operated margin to 32.8%.
Speaker Change: a 230 basis point improvement year a year. And as I told you last quarter, we're delivering incredible record cash flow this year. And please, that we're also raising our operating cash flow guidance to 23 to 25% year over year.
Marc Benioff: 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 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 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.
Speaker Change: I'm also extremely proud of our team's focus in the termination deliveries.
Speaker Change: 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 only my top of mind, but I can tell you because I've met with hundreds of customers as a quarter that it is the top of mind for every customer, for every CEO, for every CEO.
Marc Benioff: 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.
Speaker Change: 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.
Marc Benioff: It's not so unlike when we first saw cloud emerge or even other technologies where they feel like 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 offer 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 mean with these customers, and they're so excited when they meet with me and they say, oh, I built this model and we're resolving 10%, 20%, 30%, 40% of this or that and whatever.
Speaker Change: Uh, on AI. They are trying to DIY the AI. It's not so unlike when we first saw cloud emerge.
Speaker Change: even other technologies where they feel like they have to roll their own, build it themselves.
Marc Benioff: 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 rank number one CRM provider by the IDC software tracker and of course Salesforce is the number one AI CRM.
Speaker Change: 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 offer company, this is what we do, and we do it with the trust and scale that they need.
Speaker Change: and...
Speaker Change: This idea that our customers are going to have to build their own models, train their own models. Retrain them again. And I mean 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. So that, whatever, I'm like, really, we'll 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%.
Marc Benioff: And I'm like, really, we'll 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 the DIY or AI. You can use a platform like Salesforce to get the highest efficacy of artificial intelligence, the best capability to automatically automate your company, achieve all of your goals, and you can do it with professional enterprise software. And you know, I've now met with all so many of these customers to really explain and to help them understand this term, transform it a transformative power of AI.
Marc Benioff: And, you know, 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. And I think we just did that if you look at our enterprise software.
Speaker Change: and then they say, wait a minute, how do you do that?
Speaker Change: and this is a moment where every customer needs to realize you don't need the DIY Rayock.
Speaker Change: You can use a platform like Salesforce to get the highest efficacy of artificial intelligence, the best capability, to ultimately automate your company.
Speaker Change: Achieve all of your goals and you can do it with professional enterprise software.
Marc Benioff: 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 pounds. We also continue to deliver on this incredible margin growth and so many of you have guided us through that incredible transformation.
Speaker Change: and you know, I've now met with all so many of these customers to really explain and to help them understand this term, to transform it a power bay eye.
Marc Benioff: And they've really, you know, I think, you know, we've all said, okay, we've never seen a technology of all such a rapid pace. So look at the last 18 months, we're moving from this having these basic pre program chat box. Now we can really see we're delivering these intelligent conversational capabilities; these agents, it's, it's awesome. And we've created an 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.
Speaker Change: and they really, you know, I think, you know, we've all said, okay, we've never seen a technology of all that's such a rapid pace.
Speaker Change: So, look, at the last 18 months we're moving from this having these basic pre-program, chatbox. Now, we can really see we're delivering these intelligent conversational capabilities, these agents. It's awesome.
Marc Benioff: So I want to thank all of you for that. For the second quarter or non gap 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 last 24 months in margin and cash flow, which also was 892 million in the quarter.
Speaker Change: and we've created out-of-the-box platform to deliver all of this for them.
Speaker Change: So this could be service reply recommendations, account summaries, report generations you've seen in Slack, this kind of auto summarization, recaps all of these amazing things.
Speaker Change: The level of automation, the amount of code that our team has written, the transformation of our platform in last 18 months, it's remarkable and customers love it because they can take.
Marc Benioff: So now let's turn to this financial guidance. For the fiscal year 25 we continue to expect revenue at 37.7 to 38 billion, a growth of 8 to 9% year over year and subscription and support revenue growth to approximately 10% year over year in constant currency. And as you can see from our results, we've remained committed to this very profitable growth at this incredible level of scale. And we're raising our fiscal 25 non gap operating margin to 32.8% a 230 basis point improvement year over year.
Speaker Change: The Plast One.
Speaker Change: and then all of this gender to the 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 to play them in days not weeks.
Marc Benioff: It's clicks, not code, to play them in days, not weeks. They're doing this in months, not years, and you're getting immediate ROI, and the stories are awesome. And while customers have loved, you know, seeing the power of generative AI, even my values using generative AI last night to write some new ads, you know, over what we're going to do, you know, it's kind of bring agent force 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.
Speaker Change: They're doing this in the months, not years.
Speaker Change: and you're getting immediate ROI and the stories are awesome and while customers have loved
Speaker Change: You know, seeing the power of gender to the AI, even my values using gender to the AI last night to write some new
Speaker Change: at what we're going to do, you know, it's kind of bringing agent for us across, and it's so cool and so awesome.
Marc Benioff: And as I told you last quarter, we're delivering incredible record cash flow this year. And please 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.
Speaker Change: but to have it right inside the platform makes it very real for our customers.
Speaker Change: who have to manage and share all of their information to keep it trusted, to keep it secure, to build and provide capabilities in a regulatory environment.
Marc Benioff: Look, this is; they all want this huge break room. It'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 agent force platform, we're going to make a quantum report and AI. And that's why I want you all to enforce, because I want you to have your hands on this technology to really understand this. This is not co pilots, so many customers are so disappointed in what they've bought from Microsoft co pilots because they're not getting the accuracy and the response that they want.
Marc Benioff: 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.
Speaker Change: Look, this is, they all want this huge breakthrough. It's going to give them much more productivity augmentation of their employees in scale like I've been talking about, but we're seeing that breakthrough occur.
Speaker Change: Because with our new Agent Force platform, we're going to make a quantum report in the eye, and that's why I want you all to reinforce. Because I want you to have your hands on this technology to really understand this. This is Mark Co. Pilots.
Marc Benioff: 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 selling like when we first saw cloud emerge or even other technologies where they feel like 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.
Speaker Change: Some of the customers are so disappointed at what they bought from Microsoft, the Copilot, because they're not getting the accuracy in their spots that they want. Microsoft is 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 a box.
Marc Benioff: Microsoft is 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're going to, you know, I'm sure that you're going to get to San Francisco. You're going to jump in a Waymo. I know I think they've got like 500 Waymo now in San Francisco. It's pretty awesome. I use it myself, and you know what? That's like agent force, you know, we're like a Waymo for, you know, you're for your customer information and for automating your company.
Speaker Change: They're able to go right out of the platform. And when you come to Dreamforce, you're going to, you know, I'm sure that you're going to get to San Francisco. You're going to jump in a waymo. I think they've got like 500 waymos now in San Francisco. It's pretty awesome. I use it myself.
Marc Benioff: We're a professional enterprise offer 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 mean with these customers and they're so excited when they meet with me and they say, Oh, I built this model and we're resolving 10% 20% 30% 40% of this or that whatever.
Marc Benioff: 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 is needs to realize you don't need the DIY or AI. You can use a platform like Salesforce to get the highest efficacy of artificial intelligence, the best capability to automatically automate your company, achieve all of your goals and you can do it with professional enterprise software.
Speaker Change: and you know what, that's like Agent Force, you know, we're like a waymo for, you know, 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.
Marc Benioff: 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 in the example of this incredible health care company. You know, you're going to be able to say to the agent, "Hey, I want to look at my labs." I want to understand this. Looks like I need repeat labs. Can you reschedule those for me?
Speaker Change: 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 know, you're going to be able to say to the agent, hey, I want to look at my labs.
Marc Benioff: 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 health core 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, you know, simple tasks, you know, and let the doctors and the nurses do what they're going to do best.
Speaker Change: I want to understand this. Oh, it looks like I need repeat labs. Can you reschedule those for me? It 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.
Marc Benioff: And, you know, I've now met with all so many of these customers to really explain and to help them understand this term, term transfer more to transformative power of AI and they've really, you know, I think, you know, we've all said, okay, we've never seen a technology of all such a rapid pace. So look at the last 18 months, we're moving from this having these basic pre program chat box. Now we can really see we're delivering these intelligent conversational capabilities, these agents.
Speaker Change: The level of automation that we're going to be able to provide and unleash the productivity back into these organizations as awesome. And why that's important for this?
Speaker Change: Health Organization, or for all of them that were working with since the pandemic, these doctors and nurses are just so burnt out and there's so much activity.
Speaker Change: for them, that we're just going to unleash that productivity back to them. So let the agent handle this simple task, you know, 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
Marc Benioff: And that is going to be a powerful moment. So this is going to be like, you know, having these, you know, trusted colleagues can handle these time-consuming tasks, engaging with these, you know, whether it's in inbound lead or resolving this customer patient inquiry or whatever it is. This is humans with agents driving customer success together and agent force agents, and we set up in minutes, easily scalable, work around the clock, any language. And look, by, you know, I by the beginning of the next fiscal year, we will have thousands of customers, you know, using this platform and we will have and help them to make it successful for them to play it.
Marc Benioff: It's, 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 last 18 months, it's remarkable and customers love it because they can take The platform.
Speaker Change: You know, having these trusted colleagues can handle these time consuming tasks.
Speaker Change: and gazing with these, you know, whether it's inbound lead or resolving this customer patient inquiry or whatever it is.
Speaker Change: This is humans with agents driving customer success together, and agent force agents can be set up in minutes, easily scalable, work around the flock, any language. And look, by the beginning of the year, we will have thousands of customers.
Marc Benioff: 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 to play them in days, not weeks. They're doing this in months, not years, and you're getting immediate ROI. And it's the stories are awesome. And while customers have loved, you know, seeing the power of generative AI, even if I was using generative AI last night to write some new ads, you know, over what we're going to do, you know, to kind of bring agent force across and it's so cool and so awesome.
Speaker Change: You know, using this platform and we will have can help them to make it successful for them to play it.
Marc Benioff: The early trials have been remarkable to see. These customers have the success. It has been just awesome.
Speaker Change: The early trials have been remarkable. To see these customers have the success, it has been...
Marc Benioff: 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 appointments in the First Agent Force 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 like 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.
Speaker Change: Just awesome!
Speaker Change: and let me give you a great example, Wiley. Now, it's back to school season. Wiley is a longstanding sales force customer. It's one of our first deployments in the first agent force trial. It's pretty awesome. And you all know they make textbooks in its back to school.
Marc Benioff: 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.
Speaker Change: But maybe you don't know that Wiley has to like search their sales and service organization at back to school time when everyone's buying these textbooks.
Speaker Change: 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.
Marc Benioff: Look, this is, they all want this huge break room. It'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 agent force platform, we're going to make a quantum report and AI. And that's why I want you all to enforce because I want you to have your hands on this technology to really understand this.
Marc Benioff: That you know what we saw with Wiley was this: is a quote from them. We're seeing double-digit percentage increase and customer satisfaction and deflection rate compared to older technologies. And in these early weeks of our busy season. So that was very reassuring to us that we have the right thing that's happening. And while he's already seen a 50% increase in case resolution. That's with our first generation of agent forces. 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, 80 P and others is 90% case resolution.
Speaker Change: That you know what we saw with Wiley what a system of a quote from them. We're seeing double digit percentage increase in customer satisfaction and deflection rate compared to older technologies.
Speaker Change: and Amy's early weeks of our busiest season.
Speaker Change: So that was very reassuring to us.
Marc Benioff: This is not co pilots. Some customers are so disappointed in what they've bought from Microsoft co pilots 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 dream force, you're going to, you know, I'm sure that you're going to get to San Francisco.
Speaker Change: that we have the right thing that's happening.
Speaker Change: And while he's already seen 50% increase in pace 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 Canada, ADP, and others, is 90% pace resolution.
Marc Benioff: It is an awesome moment in this tech business open tables, another super great story. You all know they are managing 60,000 restaurants, 160 million diners to support. They're on Agent Force 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 their results. And it can be all kinds of questions resolving, you know, basic issues, count reactivations, reservation management, will to point expiration. Well, agent force for service can easily answer all of these questions, like when do my points expire for Diana's diner asset follow question, like what about in Mexico?
Speaker Change: It is an awesome moment in this tech business. Open tables, another super great story. You all know they are managing 60,000 restaurants, 150 million diners to support. They're on Agent Force now.
Marc Benioff: You're going to jump in a waymo. I think they've got like 500 waymos now in San Francisco. It's pretty awesome. I use it myself. And you know what that's like agent force, you know, we're like a waymo for, you know, you're 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.
Speaker Change: They require that incredible scale to deliver top-notch customer service.
Speaker Change: That's why they're using the product. It's been awesome to get their results. And it can be all kinds of questions, resolving basic issues, account reactivations, reservation management, world-to-point expiration.
Marc Benioff: So these agents don't require a conversational prompt to take action. You can do advanced planning, reasoning with minimal human input in the example of this incredible health care company. You know, you're going to be able to say to the agent, hey, I want to look at my labs. I want to understand this looks like I need repeat labs. Can you reschedule those for me? It looks like I need to see my doctor.
Speaker Change: Well, Agent Force for Service can easily answer all of these questions like, when do my points expire? For a Dianas, Diner asks a follow up question like, what about in Mexico? What about, you know, can I make this change?
Marc Benioff: What about, you know, 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, agent force for service, now agent force for sales, you can imagine extending your Salesforce with SDRs, 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 don't extend their sales and service organizations and become a lot more productive with these agents.
Speaker Change: That's where we're delivering those incredible moments for open table, giving them this kind of productivity enhancement.
Marc Benioff: 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 health core 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.
Speaker Change: So, in addition to this amazing capability agent force for service
Marc Benioff: So let the agent handle this, you know, simple tasks, you know, 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, you know, having these, you know, trusted colleagues can handle these time consuming tasks, engaging with these, you know, whether it's in inbound lead or resolving this customer patient inquiry or whatever it is.
Speaker Change: Now Agent Force Resales, you can imagine extending your sales force with STRs, BDRs who are agents that are going out and building pipeline for you and generating all kind of man and even really closing deals.
Speaker Change: 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 of service organizations and become a lot more productive with these agents.
Marc Benioff: In the coming months, we're going to release agent force 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 affect databases in the world. And I just can't believe we're already resolving this. As I said, 90% of these patients increase. So this marks a very significant advance in providing this reliable, trusted AI. You know, we're really seeing a transformation of Salesforce, but 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, you know, our analytics and visualization capability of managing, or we're still going to have humans who are sales organizations, service organizations.
Speaker Change: In the coming months, we're going to release Agenforce Agents for other roles, including industry specific agents.
Speaker Change: Health agents, as I mentioned, medical, answering all kinds of medical questions as I...
Speaker Change: mentioned, and we already have that in trial with this amazing healthcare company, and sorry, one of the largest epic database in the world, and I just can't believe we're resolving, as I said, 90% of these patients increase.
Marc Benioff: This is humans with agents driving customer success together. And agent force agents can be set up in minutes, easily scalable work around the clock, any language. And look, by, you know, I by the beginning of the next fiscal year, we will have thousands of customers, you know, using this platform and we will have and help them to make it successful for them to play it. The early trials have been remarkable to see these customers have the success. It has been just awesome.
Mark: Um, this Mark's a very significant advance in providing these reliable trusted AI. You know, we're really seeing a transformation of Salesforce.
Mark: But 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...
Mark: You know, our analytics and visualization capability of managing our We're so gonna have humans who are sales organizations, service organizations, but we are going to extend it all with this incredible agent capability.
Marc Benioff: But we are going to extend it all with this incredible agent capability. Now all of this type of performance from our agent force platform wouldn't be possible without Data Cloud. One of the reasons that our agents are so accurate is because the huge amount of data and metadata that we had, and data is the foundation for every AI translation. 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 this super accurate AI.
Mark: Now, all of this type of performance from our Agent Force platform wouldn't be possible about data cloud. One of the reasons that our agents are so accurate is because the huge amount of data and metadata that we had.
Marc Benioff: 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 appointments in the first agent force 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 like search their sales and service organization at back to school time when everyone's buying these textbooks.
Marc Benioff: 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, you know, what we saw with Wiley was, this is a quote from them, we're seeing double digit percentage increase and 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.
Speaker Change: and data is a 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, bettering data for external repositories through this credible, zero copy alliance.
Speaker Change: 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-roin organic product in history. It'll be the fastest-product of 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 a million dollars annually have very doubled. Thank you.
Marc Benioff: That's why Data Cloud is absolutely our fastest growing organic product in history. It'll be the fastest product to a billion. It's going to probably be the fastest product to 5 billion, 10 billion. In Q2, the number of paid data cloud customers grew 130% year over year. The number of customers spending more than a million dollars annually have very doubled in the second quarter alone. This is amazing. Data cloud process 2.3 quadrillion records with 110% platform consumption growth year over year. That is awesome. Just amazing, the scale and capability. And for again, 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.
Speaker Change: In the second quarter alone, this is amazing. Data cloud process 2.3 quadrillion records with 110% platform consumption growth year over year. That is awesome.
Marc Benioff: And while he's already seen 50% increase in case resolution, that's with our first generation of agent forces. 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, 80 p.
Speaker Change: Just amazing, the scale and capability and for again, 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.
Marc Benioff: And others 90% case resolution, it is a awesome moment in this tech business open tables, another super great story. You all know they are managing 60,000 restaurants, 160 million diners to support. They're on agent force 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 their results. And it can be all kinds of questions resolving, you know, basic issues, count reactivations, reservation management will to point expiration.
Marc Benioff: For the last 25 years, Salesforce has been deeply committed to building the most capable cell CRM apps that help our customers connect with their customers in this only 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 are data cloud, and our agents is one unified platform, which is how we are delivering not only this incredible functionality, but this high level of accuracy and capability.
Speaker Change: For the last 25 years sales force has been deeply committed to building the most capable sell in the CRM apps.
Speaker Change: that help our customers connect with their customers in this only 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.
Speaker Change: platform. We've rewritten?
Speaker Change: All of our acquisitions, all of our core modules, our data cloud, and our agents is one unified platform, which is how we are delivering, not only this incredible functionality, but this high level.
Marc Benioff: Well, agent force for service can easily answer all of these questions, like when do my points expire for Diana's diner asset, follow question, like, what about in Mexico? What about, you know, can I make this change? That's where we're delivering those incredible moments for open table, giving them this kind of productivity enhancement. So in addition to this amazing capability agent force for service, now agent force for sales, you can imagine extending your Salesforce with SDRs, BDRs, who are agents that are going out and building pipeline for you and generating all kind of man and even really closing deals.
Marc Benioff: And from this firsthand experience and meeting with these customers around the globe, I can unequivocally 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 is telling me how excited he was for the BDC part of his business. He built this model and the accuracy rates, and then I was like, really, let me show you what we're doing here.
Speaker Change: of accuracy and capability.
Speaker Change: and from this first-hand experience at meeting with these customers around the globe, I can unequivably tell you that building these agents without a complete integrated platform is like trying to assemble a plain mid-flight, it's risky chaotic.
Marc Benioff: 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.
Speaker Change: and it's not likely to succeed. I mean, I just got back from a dream force focus group where I met with one of the largest CIOs in the world who's telling me how excited he was and for the B2C part of his business, he built this model.
Marc Benioff: 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 is this early days of social and global customers feel like they have to DIY it. They don't need to; they can make it all happen himself. And you can just see that to deliver this very high quality capability, they can use a deeply integrated platform like Sales.
Speaker Change: and the accuracy rates of an 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,
Speaker Change: 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.
Marc Benioff: In the coming months, we're going to release agent force 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 affect databases in the world, and I just can't believe we're already resolving this. As I said, 90% of these patient increase. So this marks a very significant advance in providing this reliable trusted AI, you know, we're really seeing a transformation of Salesforce, but 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, you know, our analytics and visualization capability of managing or we're still going to have humans who are sales organizations, service organizations. But we are going to extend it all with this incredible agent capability.
Speaker Change: It's this early days of social removal, 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.
Marc Benioff: So, with that, let me just move on to Dreamforce and just say, look, I hope you're going to be 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, all the investors there. We're going to 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.
Speaker Change: So, with that, let me just move on to Dream Force and just say...
Mike Spencer: Look, I hope you're going to be able to come to Dream Force. 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. All the investors there. We're going to try to give you the highest quality experience to encourage you to do that. You'll be hearing the details for Mike on that.
Mike Spencer: Shortly.
Speaker Change: And you're knocking on one of this, but you're mostly knocking on one of this, because you're going to want to get your hands on this technology.
Marc Benioff: This is the first time that you're going to see how AI really is going to revolutionize these enterprises.
Marc Benioff: Now all of this type of performance from our agent force platform wouldn't be possible without data cloud. One of the reasons that our agents are so accurate is because 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.
Speaker Change: 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.
Marc Benioff: Now, before I hand it off to Brian, I just want to take a moment to thank Amy Lieber. It has been an incredible 11 years for all of us who work with Amy. She's been an amazing leader across many different parts of our organization as a deeply valued member of our owner. 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 platforms for growth.
Speaker Change: It has been an incredible 11 years for all of us who work with Amy.
Speaker Change: She's been an amazing leader across many different parts of our organization.
Speaker Change: is a deeply valued member of our Alhona. 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, continues through chicken best modes.
Marc Benioff: 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 this super accurate AI. That's why data cloud is absolutely our fastest growing organic product in history. It'll be the fastest product to a billion. It's going to probably be the fastest product to 5 billion 10 billion in Q to the number of paid data cloud customers through 130% year over year.
Marc Benioff: And luckily for us, you know, Amy is, you know, basically, you know, 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, you know, let me just riff on this for just a second. You know, I've had the opportunity to work with so many great executives at Salesforce.
Speaker Change: and Salesforce today is better position than ever with phenomenal platforms for growth and luckily for us, you know, Amy is
Speaker Change: You know, basically...
Speaker Change: You know, going through this amazing transformation with us and now getting ready to go to the next level in our own career.
Marc Benioff: The number of customers spending more than a million dollar annually have very doubled in the second quarter alone. This is amazing data cloud process 2.3. But Julian records with 110% platform consumption growth year over year. That is awesome.
Speaker Change: and she will step down at the end of the fiscal year at the end of February of Marcher. And then she will stay with us, I think, until May of 27 to help onboard the new CFO.
Speaker Change: and let me just riff on this for just a second.
Marc Benioff: Just amazing the scale and capability and again for customers who don't have that turned on yet and working at dream force. We're going to focus on getting every customer on the data cloud. For last 25 years sales force has been deeply committed to building the most capable sell CRM apps that help our customers connect with their customers in this only way. We've automated every customer touch point and now we're bringing these apps data and agents together.
Marc Benioff: And, you know, 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. You know, I remember Andy, Steve Cakebread, you know, 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. You know, she came in as a General Counsel. I think there's been a handful of general councils who've been able to make the transformation.
Speaker Change: I've had the opportunity to work with so many great executives at Salesforce and
Speaker Change: You know, 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, you know
Speaker Change: I remember Andy Steves, Kate Fred, Graham, Marc, and then Amy has been just incredible how she is.
Marc Benioff: It's these three levels and this isn't three separate pieces of code or three different platforms are three different systems. This is one platform. We've rewritten all of our acquisitions, all of our core modules are data cloud and our agents is one unified platform, which is how we are delivering not only this incredible functionality, but this high level of accuracy and capability.
Speaker Change: Taking my credentials to another level has been awesome to work with her when she originally came to the company 11 years ago.
Speaker Change: You know, she came in as her general counsel. I think there's been a handful of general counsels.
Marc Benioff: I always felt that Amy could do it. I have to say it was my idea that Amy should move from general counsel to be in CFO. She has exceeded my expectations. And we've hired Hydricum 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, and if you have people that you know that you're interested in this position, it's a great job, right, Amy?
Speaker Change: who have been able to make the transformation. I always felt that Amy could do it.
Speaker Change: I have to say it was my idea that Amy should move from General Council to BNCFO. She has exceeded my expectations and we've hired HydroCum struggles and are good friend Jeff Sanders to run a research, we're reviewing internal candidates and external candidates.
Marc Benioff: And from this firsthand experience and meeting with these customers around the globe, I can unequivocally tell you that building these agents without a complete integrated platform is like trying to assemble a plain mid flight. It's risky chaotic and it's not likely to succeed. I mean, I just got back from a dream force focus group where I met with one of the largest CIOs in the world is telling me how excited he was for the BDC part of his business.
Speaker Change: We're going to do a comprehensive search.
Speaker Change: Amy is going to leave that with me. We're going to find another world class person to be our 6-CFO, which will be awesome.
Speaker Change: and if you have.
Marc Benioff: It's a fantastic. It's well too, doesn't it? It's just fine. 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 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. And you took over a 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.
Speaker Change: People that you know that you're interested in this position. It's a great job, right, Amy? It's a good job satisfaction overall, get all these great events to go to.
Marc Benioff: He built this model and the 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 is this 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 himself. And you can just see that to deliver this very high quality capability, they can use a deeply integrated platform like sales.
Speaker Change: So anyway, let your folks know they can contact Jeff.
Speaker Change: and we're looking for that world-class executive to become CFO number six.
Speaker Change: and we couldn't be more grateful to Amy for everything 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 a CFO.
Speaker Change: You let us through the pandemic, you exit 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.
Marc Benioff: And we couldn't be more thrilled.
Amy Weaver: 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.
Marc Benioff: So, with that, let me just move on to Dreamforce and just say, look, I hope you're going to be 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 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.
Speaker Change: 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.
Amy Weaver: Well, thank you, Mark. It's certainly hard to follow that. I want to, it really is. All of that, but 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 out of our company.
Brian: Well, thank you, Mark, and certainly hard to follow that. I want to, it really is. 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 and 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.
Amy Weaver: 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 tremendous scale and sophistication. As a result, show in the quarter, we continue to execute on our core growth. The strong momentum and 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.
Speaker Change: I want to start by thanking the team for the strong institutions that we continue to operate tremendous scale and sophistication.
Marc Benioff: 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 work with Amy. She's been an amazing leader across many different parts of our organization as a deeply valued member of our own. 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 position than ever with phenomenal platforms for growth and luckily for us, Amy is basically going through this amazing transformation with us and now getting ready to go to the next level in her own career.
Speaker Change: As a result, show in the quarter we continue to execute on our core growth pillars with strong momentum and multi-cloud deals international expansion industry solutions, Salesforce ecosystem and data and AI innovations across all of our clouds.
Amy Weaver: Our new agent force 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. Agent Force is a deeply integrated platform. Combining our core metadata framework and 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 work forces, and dramatically improving customer and play experiences, all without the headaches of complex, costly model training or DIY AI projects.
Speaker Change: As you heard from Marc, we're interviewing faster than ever. Our new Agent Force platform, which will be generally available on October's a game changer for our customers in a huge opportunity for us going forward. The feedback I've heard from the pilot customers like Wiley and Open Table and Fossil has been overwhelmingly positive.
Speaker Change: Agent Force is deeply integrated platform combining our core metadata framework and data cloud and Einstein and extending the power of our customer through 60 apps in ways that we didn't think possible a year ago.
Speaker Change: reducing cost, scaling work forces, and dramatically improving customer and play experiences, all without the headaches of complex, costly, model training, or DIY AI projects.
Marc Benioff: 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, you know, let me just riff on this for just a second, you know, I've had the opportunity to work with so many great executives at Salesforce and, you know, 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, you know, I remember Andy Steve cake bread, you know, 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.
Amy Weaver: We're already accelerating this move from AI-hyped AI reality for thousands of customers with amazing capabilities across our entire AI product portfolio. New bookings for these products more than double quarter of a quarter. We signed 1,500 AI deals in Q2 alone. Some of the world's largest brands are using AI solutions, including a Lion 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 Co-Pilot and Prompt Builder.
Speaker Change: We're already accelerating this move from AI High to AI Reality for thousands of customers with amazing capabilities across our entire AI product portfolio, new booking, so these products more than double quarter of a quarter, we signed 1,500 AI deals and Q2 alone.
Speaker Change: Some of the world's largest brands are using AI solutions, including Alliance, Bombardier, and CMACGM.
Speaker Change: from Bardier, 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 and advanced meetings and providing recommendations on how to best engage with them through the I-Sung Co-Pilot and Prompt Builder.
Amy Weaver: 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 at a certain stage of their AI journey. They're relying on Sales Force as their trusted advisor, their partner with them to in this new world where humans and AI are working together.
Marc Benioff: You know, she came in as her general counsel, I think there's been a handful of general councils 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 be in CFO. She has exceeded my expectations and we've hired hydricum struggles and our good friend Jeff Sanders to run a search, we're reviewing internal candidates and external candidates.
Speaker Change: The next step for these companies, of course, will be deploying agents to drive even more automation and productivity.
Speaker Change: With AI technologies advancing so rapidly, it's been really challenging for our customers to keep pace. Each of our customers is a certainly different stage of their AI journey. They're relying on Salesforce as a trusted advisor. They're partner with them in this new world where humans and AI are working together.
Amy Weaver: To help our customers navigate this new world, we just launched a new team called Sales for CTOs. These are deeply technical individuals who work alongside our customers to help them create an executive plan for every stage of their AI journey to become agent-first companies. We're continuing our own AI journey internally at 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.
Marc Benioff: 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, and if you have people that you know that you're interested in this position, it's a great job right Amy. It's a fantastic as well, too, doesn't it? It's just fun 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.
Speaker Change: 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.
Speaker Change: We're continuing our own AI journey internally at the customer's zero of all of our products with great results.
Speaker Change: We now have 35,000 employees using Einstein as a trusted AI assistant, helping them work smarter and close yields 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.
Amy Weaver: We will of course deploy agent force 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. Equalment 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 policy orders nationwide, is using data cloud to consolidate data from multiple sources through our zero copy partner network, creating a 360 degree view of customers, enabling quick segmentation and activating lead data, including their real time web interactions.
Marc Benioff: And we couldn't be more grateful to you Amy for everything 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 a CFO, you let 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.
Speaker Change: Will, of course, deploy agent force agents soon in a variety of different roles and tasks to augment automating deliver productivity and unmatched experiences for all employees and customers at scale.
Speaker Change: and Marc said about data cloud. It continues to be highly strategic for our customers as they build foundations from fusing AI across their enterprises.
Speaker Change: American family insurance with millions of policy older nationwide is using data cloud to consolidate data from multiple sources through our zero copy partner network creating 360 review of a customer's enabling quick segmentation and activating lead data including their real-time web interactions.
Brian Millham: 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.
Amy Weaver: The Adeco 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 its customers. Connecting all this data means that 27,000 Adeco employees using Salesforce love seamless access to key information, including financial metrics and job fulfillment status to help Adeco improve their job sale rate ratio and reduce their cost to serve. And 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 the 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.
Brian Millham: Well, thank you, Mark. It's certainly hard to follow that. I want to, it really is. All of that, but particularly the Amy part. I want to echo your comments on Amy and unbelievable leader who's been an amazing partner to me, an example and role model to so many out of our company. I'm just so glad that we have more time with Amy as we work on this transition.
Speaker Change: The Ateco Group expanded their data cloud in the quarter grade example of a company leveraging its gold-minded data to gain.
Speaker Change: A unified view of its customers connecting all this data means that 27,000 adecal employees using Salesforce left seamless access to key information, including financial metrics and job fulfillment status. To help adecate and improve their job fill rate ratio and reduce their cost to serve.
Brian Millham: I want to start by thanking the team for the strong execution is we continue to operate tremendous scale and sophistication. As a result show in the quarter, we continue to execute on our core growth. The strong momentum and 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 agent force platform, which will be generally available on October as a game changer for our customers and a huge opportunity for us going forward.
Speaker Change: and all my conversations with the CEO's 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 try sales force across their most critical test points with their customers, leading to strong multi-cloud deals in the quarter, as Marc said nearly 80% of our new business in the quarter was driven by multi-cloud deals.
Amy Weaver: Companies like Wyndham Hotel and Resorts are all in on Salesforce; they're using us for Sales Cloud, 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 unified profiles of 165 million guest records, many of which were duplicates across many sources like Amazon Redshift and the Saber reservation system as well as Sales Cloud, Marketing Cloud, and Service Cloud. MuleSoft allows when the unlock business critical data from various platforms and on board future franchise East faster and with Einstein generated recommended service replies, average call times have been reduced and service agents can focus on higher priority work.
Speaker Change: companies like Windham Hotel and Resorts are all in on Salesforce, they're using us for sales cloud and service cloud. Marketing cloud data cloud, Einstein and MealSoft, to transform its gas experience into a seamless end-end journey built in a single interface.
Brian Millham: The feedback I've heard from the pilot customers like Wiley and open table and fossil has been overwhelmingly positive. Agent force is deeply integrated platform combining our core metadata framework and 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 costs, scaling work forces and dramatically improving customer and play experiences all without the headaches of complex costly model training or DIY AI projects.
Speaker Change: Windham Utilizes data cloud to unify profiles of 155 million gas records, many of which were duplicates across many sources like Amazon Redshift and the Saber reservation system as well as sales cloud, marketing cloud and service cloud.
Neil Soffel: and Neil Soffel has won the Unlocked Business Critical Data from various platforms and on board's future franchise E-s faster and with Einstein generated recommended service replies, average call times have been reproduced and service agents can focus on higher priority work.
Brian Millham: 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 double quarter of a quarter. We signed 1500 AI deals in Q2 alone. Some of the world's largest brands are using AI solutions, including a lion 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 co pilot and prompt builder.
Amy Weaver: 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 concept 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 Dean US Foods and East Carolina University.
Speaker Change: So I can continue to perform well with when to Citadel, converge ICT and Geico for the quarter 82 of the Fortune 100 now use Flack Connect every week to better connect with their customers and their partners.
Speaker Change: and 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 concert, conversational interface where humans and agents can come together.
Speaker Change: Tableau and Mulesoft had solid quarters with Tableau wins at the Department of Interior at RBC Welp Management and Chewy and Mulesoft wins at Dean, US Foods and East Carolina University.
Brian Millham: 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 at a certain stage of their AI journey. They're relying on Salesforce as their trusted advisor, their partner with them to in this new world where humans and AI are working together.
Amy Weaver: Moving on to our international business, 5 of our top 10 deals came from our international teams, with wins at Ferrari, 6 Sui 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 clouds in the quarter, and we continue to innovate on our industry AI capabilities.
Speaker Change: Moving on to our international business, five of our top 10 deals came from our international teams, with Windsor Ferrari, Sixth U.S., and Commonwealth of Australia. We saw a particular strength in Japan, India and Canada.
Speaker Change: We had strong momentum in our industry's business as well, and we continue to help our customers save time and money with industry specific solutions. More than half of our top hundred deals included one of our industry clouds in the quarter. And we continued to innovate on our industry AI capabilities.
Brian Millham: 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 an executive plan for every stage of their AI journey to become agent first companies. We're continuing our own AI journey internally at 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.
Amy Weaver: At Dreamforce, we're excited to share our new AI toolkit 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. Tableau's partners continue to drive our growth by helping us drive success at scale and proving 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 to the AWS marketplace.
Speaker Change: at Dreamforce for excited to share our new AI toolkit industry toolkit which features more than a hundred ready to use customizable AI powered actions. All of these actions can be applied to build industry specific agents with agent force.
Brian Millham: 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 will of course deploy agent force 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. Equalment Mark said about data cloud, it continues to be highly strategic for our customers as they build foundations for infusing AI across their enterprises.
Speaker Change: Salesforce partners continue to drive our growth by helping us drive success at scale and moving 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 close through the AWS marketplace.
Amy Weaver: As Mark mentioned, we're just at the beginning of building an agent force 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 agent force partner.
Marc: As Marc mentioned, we're just at the beginning of building an Asian-Force ecosystem with companies able to build agents on our platform for their workforce and use cases, and we're excited to have work day as our first Asian-Force partner.
Amy Weaver: And closing, I want to thank the team again. I'm really pleased with the execution in Q2.
Brian Millham: American family insurance with millions of policy orders nationwide is using data cloud to consolidate data from multiple sources through our zero copy partner network, creating a 360 degree view of customers, enabling quick segmentation and activating lead data, including their real time web interactions. The Adeco 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 its customers connecting all this data means that 27,000 Adeco employees using Salesforce love seamless access to key information, including financial metrics and job fulfillment status to help Adeco improve their job sale rate ratio and reduce their cost to serve.
Amy Weaver: 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.
Amy: In closing, I want to thank the team again. I'm really pleased with the execution in Q2. Three forces 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.
Amy Weaver: Now over to you, Amy. Great. Mark, Brian, thank you so much for all of the kind words.
Amy Weaver: It has been such a privilege to work with both of you. Mike, the entire team. I have hardworking, dedicated, and compassionate employees at Salesforce. Mark, 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 have rarely done so surprised in my life. It's been extraordinary. And I also want to thank all of you, our investment community, and in particular shareholders, for your continued support of Salesforce. It's been a pleasure working with you on our transformation journey over the last few years.
Amy: Great, Marc, Brian, thank you so much for all of the kind words and it has been such a privilege to work with both of you, Mike.
Amy: The entire team of hardworking, 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 to see a full role. I have rarely been surprised in my life.
Brian Millham: And 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 touchpoints with their customers, leaving the 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.
Amy: and Amy Weaver. It's been extraordinary.
Amy: and I also want to thank all of you who are in bestsmack community and in particular our shareholders for your continued support and failed forth.
Amy Weaver: Since my first day as CFO, my focus has been on transforming our business to deliver profitable growth and discipline, capital allocation.
Speaker Change: It's been a pleasure working with you on our transformation journey over the last few years. Since my first day at CFO, my focus has been on transforming our business to deliver profitable growth and just one capital allocation.
Brian Millham: 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 profiles 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 on-board 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.
Amy Weaver: 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 discipline and investment strategy led to strong results. Q2 revenue was 9.33 billion, of 8% year over year and nominal, and 9% in constant currency, ahead of expectation, driven primarily by resilience in our core products, license revenue outperformance. And a better extended professional services. Subscription and support revenue grew 9% year over year and nominal, and 10% in constant currency.
Speaker Change: In that time, I am so proud of what we had accomplished and I look forward to sharing Salesforce on for years to come.
Speaker Change: So, moving to the quarter, I want to echo Brian and thanks to team for their dedication and very strong execution in Q2.
Speaker Change: Our focus on profitable growth in our gets-up funding investment strategy led to strong results.
Speaker Change: Q2 revenue was 9.33 billion, up 8% year over year in nominal and 9% in constant currency. ahead of expectation, driven primarily by resilience in our core products, licensed revenue out performance and a better, extended, professional services.
Brian Millham: Slack continues to perform well with Wyndham 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 IA 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 concert 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 Welk Management and Chewy and MuleSoft wins at Veeam, US Foods and East Carolina University.
Speaker Change: subscription and support revenue grew 9% year over year nominal and 10% in constant currency. As a reminder, Q1 had benefited from the timing of licensed revenue in the bleep year, resulting in a quarter over quarter headwind to Q2 revenue growth.
Amy Weaver: 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 America's revenue grew 7% or 8% in constant currency. A Maya 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 US and parts of the Maya remain constrained. From an industry perspective in Q2, public sector HLS and comes in media performed well, while travel transportation and hospitality and manufacturing automotive and energy were more constrained.
Speaker Change: From a geographic perspective, the America's revenue grows 7% or 8% in constant currency. Amy agree with 11% in both nominal and constant currency, and apex grows 9% or 16% in constant currency.
Speaker Change: We saw strong new business growth in Japan, India, and Canada, while the U.S. and parts of the NAI remains constrained.
Brian Millham: Moving on to our international business, five of our top 10 deals came from our international teams with wins at Ferrari, Sixth Sui House and Commonwealth of Australia. We saw a particular strength in Japan, India and Canada. We had strong momentum in our industry's 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 clouds in the quarter.
Speaker Change: From an industry perspective in Q2, public sector, HLS, and comes in media performed well. Will travel transportation and hospitality and manufacturing automotive and energy for more constraint?
Amy Weaver: 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 our code due to premium next shift and pricing. 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 clouds, which remains one of our fastest growing organic innovations. 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.
Speaker Change: 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 R-Pode due to the premium next shift and pricing response.
Brian Millham: And we continue to innovate on our industry AI capabilities. At Dreamforce, we're excited to share our new AI toolkit, 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. Tableau's partners continue to drive our growth by helping us drive success at scale and proving 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 close through the AWS marketplace.
Speaker Change: And as you've heard from Brian, multi-clouds continues to be a powerful growthloper 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.
Brian: And we continue to see strong momentum and data cloud, which remains one of our fastest growing organic innovation. In Q2, our number of paid customers were 130% year over year, and the number of customers spending more than $1 million annually nearly doubled.
Brian Millham: As Mark mentioned, we're just at the beginning of building an Agent Force 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 Agent Force partner.
Brian: Q2 revenue expression ended the quarter at around 8% in line with recent quarters.
Amy Weaver: We are continuing to drive leverage across our business with Q2 non-gath operating margin of 33.7%, a record, up more than 200 basis points year over year driven by top line out performance 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 CRPL ended at 26.5 billion, up 10% year over year in nominal currency.
Brian: We are continuing to drive leverage across our business with Q2 non-gap operating margin of 33.7% a record, up more than 200 basis points year over year driven by top line out performance and expense discipline.
Brian Millham: And closing, I want to thank the team again. I'm really pleased with the execution in Q2.
Brian Millham: 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.
Brian: and we are driving strong cash flow due to our profitable growth trajectory. Q2 operating cash flow was 802 million, up 10% year over year. Q2 free cash flow was 755 million, up 20% year over year.
Amy Weaver: Now over to you, Amy. Great. Mark, Brian, thank you so much for all of the kind words.
Amy Weaver: It has been such a privilege to work with both of you. Mike, the entire team. I have hard working dedicated and compassionate employees at Salesforce. Mark, 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 have rarely done so surprised in my life. It's been extraordinary. And I also want to thank all of you our investment community and in particular as shareholders for your continued support of Salesforce.
Brian: Turning to remaining performance obligation, RPO, which represents all future revenue under contract. RPO ended Q2 at 53.5 billion, up to 15% year over a year.
Speaker Change: Curves RPO or CRPO ended at 26.5 billion, up 10% year over year in nominal currency. This includes a $300 million SX headwind, which results in slightly above 11% year over year growth in constant currency.
Amy Weaver: This includes the $200 million FX headwind, which results in slightly above 11% year-over-year growth in constant currency. The RPO outperformance was driven largely by booking execution as well as early renewal data ability. On capable 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 total return to shareholders in the quarter to $4.7 billion, a record high quarterly return. As a result, we now expect more than fully offset delusion from FY25 stock-based compensation.
Speaker Change: The RAPO out performance was driven largely by bookings execution, as well as early renewal of the availability.
Amy Weaver: 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 discipline capital allocation.
Speaker Change: On Capable Return, I'm happy to say that in Q2, we executed $4.3 billion in share repurchase and it should nearly $400 million in Dividate.
Amy Weaver: 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 corner, 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 discipline, investment strategy led to strong results. Q2 revenue was 9.33 billion of 8% year over year and nominal and 9% in constant currency ahead of expectation driven primarily by resilience in our core products license revenue out performance and a better extended professional services.
Speaker Change: 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 more than fully offset dilation from FY-25 stock-based compensation.
Amy Weaver: Now let's turn to guidance, starting with the full fiscal year 25. On revenue, we are holding our guidance with 37.7 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 process. On FX, our revenue guidance continues to incorporate a $100 million FX headwind year over year, or a 30 basis points impact. We continue to expect a 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.
Speaker Change: Now let's turn the guidance, turning with the full fiscal year to 25.
Speaker Change: On revenue, we are holding our guidance of 37.7 to 38 billion. Gross for approximately 8 to 9% year over year.
Speaker Change: 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, process.
Speaker Change: On FX, our revenue guidance continues to incorporate a $100 million FX headwind year-over-year, or a 30-based point impact.
Amy Weaver: Subscription and support revenue grew 9% year over year and 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. Amia grew 11% in both nominal and constant currency and apex grew 9% or 16% in constant currency.
Speaker Change: We continue to expect a professional services business via headwinds to wrap an out. And we expect deceleration and our license revenue grows in the back half of the year. This is due to the tough contair from very strong performance last year, and the volatility of license revenue recognition.
Amy Weaver: This is due to the tough compare from very strong performance last year and volatility of license revenue retention. For such subscription support revenue, we still expect approximately 10% growth year over year and constant currency. And we expect a treason to remain generally consistent as slightly above 8% for the full year.
Speaker Change: Presets subscription support revenue, we still expect approximately 10% growth year over year in constant currency. And we expect a tradition to remain generally consistent as slightly above 8% for the full year.
Amy Weaver: We saw strong new business growth in Japan, India, and Canada, while the US and parts of the media remains constrained. From an industry perspective in Q2, public sector, HLS and Compton 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 our code due to premium next shift and pricing.
Amy Weaver: Now, it's 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%. We're representing a 230 basis points improvement year over year. This incorporates intentional investments and growth opportunities, notably AI and agent for us data and our core business. Doc base compensation is now expected to be 8.4% at the rate at the percent of revenue. The modest increase from our prior guidance is primarily a result of a mechanical ESPP reset. As a result, for fiscal year 25, GAAP operating margin guidance is now expected to be slightly below 20%.
Speaker Change: Now, it's turning to profitability and cash flow.
Speaker Change: On margins as a result of our strong Q2 performance, we are raising our fiscal 25 non-gap operating margin to 32.8%. We're presenting a 230 basis point improvement year over year. This incorporates intentional investments in growth opportunities, notably AI and agent forest, data and our core businesses.
Speaker Change: Delph-based compensation is now expected to be 8.4% at the rate as a percent of revenue. The monsting crease from our prior guidance is primarily a result of a mechanical ESPP reset.
Amy Weaver: 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 to a more clouds. And we continue to see strong momentum in data clouds, 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 done.
Speaker Change: As a result, for fiscal year 25, gap operating margin guidance is now expected to be slightly below 20%. We're presenting 530 basis points of improvement year over year, which includes a slight increase in restructuring charges from our ongoing cost transformation.
Amy Weaver: We're representing 530 basis points of improvement year over year, which includes a slight increase in restructuring charges from our ongoing cost trend. We expect Cisco year 25 gap deluded APS of $6.05 to $6.13. Non-GAAP deluded APS is expected to be $10.03 to $10.11. As you have heard this emphasize over the last few quarters, we are focused on driving continued free cash flow expansion. As a result of our discipline capital deployment, we are raising Cisco Year 25 operating cash flow growth to be approximately 23 to 25% inclusive of cash tax headlands. We now expect CapEx for the Cisco year to be slightly below 2% of revenue.
Speaker Change: We expect fiscal year 25 GAP, the leader DPS, of $6.05 to $6.13, non-GAP, the leader DPS, is expected to be $10.03 to $10.11.
Amy Weaver: We are continuing to drive leverage across our business with Q2 non-gath operating margin of 33.7% a record, up more than 200 basis points year over year driven by top line out performance 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.
Speaker Change: As you've heard us emphasize over the last few quarters, we are focused on driving continued free cash flow expansion.
Speaker Change: As a result of our disciplined capital deployment, we are raising fiscal year 25 operating cash flow gross to be approximately 23 to 25% inclusive of cash tax headland.
Amy Weaver: This now results in free cash flow growth of approximately 25 to 27% for the Cisco year.
Speaker Change: We now expect cap eggs 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.
Amy Weaver: 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. The RPO 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 a 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, the RPO will continue to be materially impacted, but it still looks at the fact of the previous two years of measured sales performance.
Amy Weaver: 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 and nominal currency. This includes the $200 million FX headwind, which results in slightly above 11% year over year growth and constant currency. The RPO out performance was driven largely by booking execution as well as early renewal data ability. On capable 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 total return to shareholders in the quarter to $4.7 billion, a record high quarterly return. As a result, we now expect more than fully offset delusion from FY25 stock based compensation.
Speaker Change: 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.
Speaker Change: CRPO growth for Q3 is expected to be 9% year-over-year nominal, including $100 million Fx Tailwind. This will result in approximately 8.5% constant currency growth.
Speaker Change: This is inclusive of the 1.4-year-old recorder headwind from the very significant deal we closed in Q3 last year.
Speaker Change: As a reminder, while we have seen more normalized buildings growth recently, the RTO will continue to be materially impacted by the kills of the fact that the previous two years of measured sales performance.
Amy Weaver: For Q3, we expect GAP EPS of $1.41 to $1.43, a non-GAP EPS of $2.42 to $2.44.
Speaker Change: For Q3, we expect GAP if you ask a $1.41 to $1.43 and non-GAP if you ask a $2.42 to $2.44.
Amy Weaver: In closing, I am 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.
Speaker Change: In closing, I am very pleased with our strong execution of this quarter as we continue to focus on profitable growth and optimising free cash flow.
Amy Weaver: Now let's turn to guidance starting with the full fiscal year 25. On revenue, we are holding our guidance of 37.7 to 38 billion, growth of approximately 89% 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 process. On FX, our revenue guidance continues to incorporate a $100 million FX headwind year over year or a 30 basis points impact.
Amy Weaver: I hope you're able to participate in Dreamforce and see our new Agent Force platform and all of the incredible innovation happening at Salesforce, whether in person or virtually.
Speaker Change: and I want to thank our employees and our shareholders for their continued support. I hope you're able to participate in Dream Force and see our new Agent Force platform and all of the incredible innovation happening at Salesforce, whether in person or virtually.
Marc Benioff: So, before we open up the calls for questions, though, I am going to send it back to Mark.
Marc Benioff: Okay. Well, thanks so much, Amy. And congratulations again on this amazing transition and the success. And, you know, you're an awesome General Counsel. You're an even better CFO. Now we have Sebastian, who's, you know, 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.
Speaker Change: So before we open up the call for questions that I am going to send it back to Marc.
Marc: Okay, well thanks so much Amy and congratulations again on this amazing transition and the success.
Speaker Change: You know, you're an awesome general counsel, you're an even better CFO now we have Sebastian, you know, delivering the general counsel capability sitting here at the table of us and I can't wait to see who you're going to bring in this next CFO.
Amy Weaver: 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 very strong performance last year and volatility of license revenue retention. For such subscription support revenue, we still expect approximately 10% growth year over year and constant currency. And we expect a treason to remain generally consistent as slightly above 8% for the full year.
Marc Benioff: So this next thing, I wish I didn't have to say to all of you, but I am going to because it's been; I 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. Our hearts and our spirits and our souls are with them, and also, you know, our condolences are with their families: amazing families, amazing people.
Speaker Change: So, this next thing I wish I didn't have to say to all of you, but I...
Speaker Change: I'm going to you because it's been 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.
Amy Weaver: Now turning to profitability and cash flow on margins as a result of our strong Q2 performance. We are raising our fiscal 25 non gap operating margin to 32.8%. We're representing a 230 basis points improvement year over year. This incorporates intentional investments and growth opportunities, notably AI and agent for us data and our core businesses. Doc base compensation is now expected to be 8.4% at the rate at the percent of revenue. The modest increase from our prior guidance is primarily a result of a mechanical ESPP reset.
Speaker Change: 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 or with them and also you know.
Marc Benioff: 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, the company, but also personally; they did so much for me. So I'm so grateful for them, and I miss them every single day.
Speaker Change: Arkandolens is there with their families, amazing families, amazing people. They did so much for our company and they were not just great board members.
Speaker Change: and not just great leaders of our industry, but they were also great friends, the company, but also personally, they did so much for me.
Amy Weaver: As a result, for fiscal year 25 gap operating margin guidance is now expected to be slightly below 20%. We're representing 530 basis points of improvement year over year, which includes a slight increase in restructuring charges from our ongoing cost trend. We expect fiscal year 25 gap deleted APS of $6.5 to $6.13. Non-gap deleted APS is expected to be $10.3 to $10.11.
Marc Benioff: 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 miss them, and I'm turning it over to you.
Speaker Change: 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.
Speaker Change: Favorite part of what I do, but I just want to tell everyone how much I love Sandy and Susan and how much I miss them and I'm turning it over to you, Mike.
Unknown Executive: Thank you, Mike. Thank you, operator. We'll take the first question, please. Thank you. That question comes from Keith Weiss, Morgan Stanley.
Mike Spencer: Thank you, operator. We'll take the first question, please.
Amy Weaver: As you have heard this emphasize over the last few quarters, we are focused on driving continued free cash flow expansion. As a result of our discipline capital deployment, we are raising fiscal year 25 operating cash flow growth to be approximately 23 to 25 percent inclusive of cash tax headlines. We now expect catbacks for the fiscal year to be slightly below 2 percent of revenue. This now results in free cash flow growth of approximately 25 to 27 percent for the fiscal year.
Keith Weiss: Nice one. Thank you guys for taking the question. Congratulations on a really solid quarter. And Amy, really hard work and see you going. It's been great working with you over the past four years of CFO. It's done an amazing job in the role.
Mike Spencer: Thank you, that question comes from peace-wise Morgan Stanley.
Speaker Change: Nice to meet you guys for taking the question. Congratulations on a really solid quarter. Amy, really part broken see you going. It's been great working with you over the past four years in CFO. I've done an amazing job in the world.
Keith Weiss: Two, 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 an expanding portfolio that 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, international expansion, multi-class solution.
Speaker Change: Two-part question, one on sort of the growth equation for Salesforce, a lot of the excitement around the generative AI and the new AI capabilities and expanding portfolio that 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-class solution, maybe a question for Brian, can you help us understand how to build up the growth equation, like where are you getting those points and when does Gen AI become a more material contributor there?
Amy Weaver: Now the guidance for Q3. On revenue we expect 9.31 billion to 9.36 billion up 7 percent year-over-year and nominal and constant currency. The RPO growth for Q3 is expected to be 9 percent year-over-year and nominal, including $100 million FX tailwind. This will result in approximately 8.5 percent constant currency growth. This is inclusive of a 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, the RPO will continue to be materially impacted, but it still looks at the fact that the previous two years of measured sales performance. For Q3, we expect GAP EPS of $1.41 to $1.43, a non-GAP EPS of $2.42 to $2.44.
Keith Weiss: Maybe a question for Brian. Can you know what I understand? How to build up the growth equation? Where are you guys getting those points of growth? And when does Gen AI become a more material contributor there?
Marc Benioff: And then the second question is around pricing, with agents coming into the picture, with productivity gain 90% of selection 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 gets the value from these solutions on a go forward basis. Thank you.
Speaker Change: and then the second question around pricing, with agents coming into the picture with productivity gains.
Speaker Change: 90% of flexion 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 gets the value from these solutions on the GoForeDaysers.
Marc Benioff: But let me open it up and then turn over to Brian and, you know, because, you know, you are right. This is just a moment, and it's an exciting moment. It is all about growth and it's all about innovation and those arts, but two of our specialties here at Salesforce. So I think when we think about growth, you know, for the last 25 years, I'd say we're mostly focused on selling our apps, you know, 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.
Speaker Change: Thank you. Let me open it up and then turn it over to Brian and you know, because...
Brian: You know, 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 its two of our specialties here at Salesforce. So I think when we think about growth.
Amy Weaver: In closing, I am very pleased with our strong execution this quarter as we continue to focus on profitable growth and optimizing free cash flow. I want to thank our employees and our shareholders for their continued support. I hope you're able to participate in Dreamforce and see our new agent force platform and all of the incredible innovation happening at Salesforce, whether in person or virtualite.
Brian: You know for the last 25 years I'd say we're mostly focused on showing our house.
Brian: and doing the services around those and working with 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...
Marc Benioff: Before we open up the calls for questions, though, I am going to send it back to Mark. Okay, well thanks so much Amy and congratulations again on this amazing transition and the success and you know, you're an awesome general counsel. You're an even better CFO. Now we have Sebastian who's you know, delivering the general counsel capabilities 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.
Brian Millham: Data Cloud as well. And now we're selling our agents and not just, you know, 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 and incredible rates. And you know, 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.
Brian: Data Cloud as well, and now we're selling our agents.
Brian: and not just, you know, is core platforms, but also through our verticals, which have been so of our highest performing capabilities in the company. And you're also right that there are international regions that are growing and incredible rates.
Marc Benioff: So this next thing I wish I didn't have to say to all of you, but I am going to because it's been, I 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, you know, our condolences are with their families, amazing families, amazing people.
Brian: and you know, 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.
Marc Benioff: 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, the company, but also personally they did so much for me. So I'm so grateful for them and I miss 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 miss them and I'm turning it over to you.
Brian: 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, this three really core level or so growth, in my mind, I'm going to turn over to Brian to give you the detail. And then number two.
Marc Benioff: I'm going to turn 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 as a consumption product, the commerce cloud is a consumption product. In fact, of course, the email product of 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.
Brian: I'm pricing. When you think about, um...
Brian: When you think about apps,
Brian: and you think about humans because humans use apps, not in all cases, so for example, the data cloud as a consumption product, the commerce cloud is a consumption product. Of course, the email product, the 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.
Marc Benioff: But in this idea of agents, you know, when I'll just give you my own personal goal. So, you know, I'm not giving any guidance here. You know, 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. You know, just in the trials that we have going on, we have like 100 million identified or more. Okay. on the 200 million. But the funny thing is, of course, it's only one agent. But you know, let's just think it's like a manifestation of all these agents talking to all these consumers.
Brian: But in this idea of agents, you know, one...
Speaker Change: and I'll just give you my own personal goal. So, I'm not giving any guidance here. You know, my goal is that by the end of fiscal year 20...
Speaker Change: Six, that we will have a billion agents. Already in just looking at the number of consumers identified, you know, just in the trials that we have going on, we have like a hundred million identified or more.
Keith Weiss: Mike. Great. Thank you, operator. We'll take the first question, please. Thank you. That question comes from Keith Weiss, Morgan Stanley. Thank you guys for taking the question. Congratulations on a really solid quarter. And Amy, really, Parkburg, and see you going. It's been great working with you over the past four years of CFO. I've done an amazing job in the role.
Paul Stewart-Money: Paul Stewart-Money. But...
Speaker Change: The funny thing is, of course, it's only one agent, but, you know, let's just think it's like...
Marc Benioff: 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.
Speaker Change: of 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.
Brian Millham: Two part question. One on sort of the growth equation for Salesforce. A lot of excitement around the gender of AI and the new AI capabilities and expanding portfolio that 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-class solution to maybe a question for Brian. Do you know what I understand? How to build up the growth equation? Where are you guys getting those points of growth? And when does Gen AI become a more material contributor there?
Speaker Change: 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.
Speaker Change: It's a very high margin opportunity as you can imagine.
Speaker Change: 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 is a good way to look at it or you know we're selling additional consumption credits like we do with our data cloud.
Marc Benioff: And we're going to be helping our customers to manage these conversations. And it's probably a per conversational charge is a good way to look at it. Or, you know, we're selling additional consumption credits. Like we do. We do with our data cloud.
Marc Benioff: And then the second question around pricing. With agents coming into the picture with productivity gain, 90% of selection 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 gets the value from these solutions on the go forward basis. Thank you.
Marc Benioff: So it's a very exciting moment.
Brian Millham: And I'll turn it over to Brian as well. Yeah, 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 innovations are on agent force 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 costs of running a call center. And when you bring a technology that allows you to scale and drive efficiencies in operating that call center.
Speaker Change: So, it's a very exciting moment and um...
Brian: I'll turn it over to Brian as well. 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.
Marc Benioff: But let me open it up and then turn it over to Brian and, you know, because, you know, you are right. Like this is just a moment. And it's an exciting moment. It it is all about growth and it's all about innovation and those are two of our specialties here at Salesforce.
Brian: Thanks, it's important not to lose track of the fact that these new innovations are on agent force and data cloud and AI and make all of our core apps not much better.
Brian: And even in the context of service cloud that you're referencing here, our customer who are looking at their all-in costs of running a call center and when you...
Brian Millham: So I think when we think about growth. You know, for the last 25 years, I'd say we're mostly focused on selling our apps, you know, and doing the services around us. 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.
Brian Millham: 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.
Brian: Bring a technology that allows you to scale and drive efficiencies in operating that call center and it's on our technology.
Brian: We're excited about those conversations because we think we get to monetize all of that incredible innovation through the all-in costs there. There are a couple other things that I think you should know about certainly our channel diversification is we think about scale and international business you through resellers.
Brian Millham: There are a couple other things I think you should, you should know about. Certainly, our channel diversification is we think about scale and international business 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, our pop 10 deals went through the marketplace. So a big opportunity there.
Brian: A big upsides for us. I believe our AWS Marketplaces are driver going for it. I mentioned in the comment earlier that
Brian Millham: And not just, you know, as core platforms, but also through our verticals, which have been so of our highest performing capabilities in the company. And you're also right that there are international regions that are growing and incredible rates. And, you know, 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.
Brian Millham: 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 tradition 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 inefficiencies using our technology. 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.
Brian: The three of our top 10 deals went through the marketplace, so a big opportunity there.
Brian: 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
Speaker Change: How do we look at managing our attention 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 to drive from our technology to deliver more value to customers so that they get growth off of an efficiencies using our technology? So, many inputs, you know, many of them, but as Marc said, this is a new era and we're excited about the future and the value we can deliver to our customers.
Marc Benioff: 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 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.
Brian Millham: Thanks, Keith.
Unknown Executive: Operator will take the next question, please.
Kash Rangan: Thank you. Next up is cash rank in Goldman Sachs.
Speaker Change: Thanks, Keith. I'll bring it to your next question, please.
Kash Rangan: Mark, you've made my heart feel heavy as well with Sandy. You might know, I used to work for Sandy long time ago. So prayers with you back to the back to the business. Congrats on the quarter, Amy. I don't know anybody who is, who was a chief legal officer and became a successful CFO and led the company through a transformation. So you'll go down, and history has a very unique person in that regard. One macro thing. Mark, you've been through so many cycles before. I think rate reductions and post elections, it might be a more conducive selling environment at a high level and also the micro question with AI.
castring: Thank you, except it's castring in Goldman Sachs.
Marc Benioff: So for example, the data cloud is a consumption product, the commerce cloud is a consumption product. Of course, the email product of 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.
Speaker Change: Mark, you've 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 don't know anybody who is.
Speaker Change: who was a chief legal officer and became a successful CFO in the company through a transformation. So you'll go down and head to you as a very unique person in that regard. One macro thing, Marc, you've been through so many cycles before you think.
Marc Benioff: But in this idea of agents, you know, when I'll just give you my own personal goal. So, you know, I'm not giving any guidance here. You know, 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, you know, just in the trials that we have going on. We have like a hundred million identified or more.
Speaker Change: Ray Productions and Post-Elections, it might be more conducive to selling environment at a high level and also the micro question with AI.
Kash Rangan: Clearly, the debate is going to create so much productivity that we need fewer people. Clearly, your ideas 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 be for the penetration of seats. And it might be about who is not using AI and they're 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.
Speaker Change: Clearly, the debate is going to create so much productivity that we need for your people. Clearly, your ideas that we're going to float agents out there, 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.
Marc Benioff: Okay, with $200 million. But the funny thing is, of course, it's only one agent, but you know, let's just think it's like a manifestation of all these agents talking 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.
Speaker Change #100: This might actually, for the penetration of seats, it might be about who is not using AI and they're going to be losers versus people that are using AI. So how does this play out in your view and you've been to a cloud battle and all that, so I love your perspective. Thank you.
Marc Benioff: So love your perspective. Thank you. Well, thanks, Kashan. Yes, our hearts are with Sandy's family and with his wife, Nancy, and his daughters. Thank you for saying that so much.
Speaker Change #101: Well, thanks Cache and yes, our hearts are with Sandy's family and with his wife, Nancy and his daughters.
Marc Benioff: 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 is a good way to look at it, or, you know, we're selling additional consumption credits. Like we do with our data cloud.
Marc Benioff: You know, I think let me just tell you two quick stories. I kind of told you one already in the in the script, which is we're working with this very large healthcare organization and. You know, it's been our lifelong dream to be able to do more with this with this company, and they are a large Epic user. They have a huge MR system. We do a lot of patient relationship management, which is, you know, just keep in touch with their customers, but this is different. Because what happens now is, you know, we all have this experience: we go get our labs done, you know, they draw your blood, you get your numbers, and then you get a number and you're in Epic and it says, "Oh, oh, this is out of range or this isn't right or this seems higher or lower than it was before."
Speaker Change #102: Thank you for saying that so much. You know, I think, let me just tell you two quick stories. I kind of told you one already in the script, which is working with this very large health care organization. And, um...
Speaker Change #102: You know, it's been our lifelong dream to be able to do more with this 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, you know, just keeping in touch with their customers. But this is different.
Marc Benioff: So it's a very exciting moment and I'll turn it over to Brian as well. Yeah, thanks for the question Keith. And I appreciate your knowledge of all of our, 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 innovations are on agent force and data cloud and AI and make all of our core apps that much better.
Speaker Change #102: Because what happens now is, you know, we all have this experience, we go get our labs done, you know, they draw your blood.
Speaker Change #102: and you get your numbers and then you get a number in your in-appic and it says, oh, oh, this is outer 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.
Marc Benioff: 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 burn out. You can talk to any major healthcare organization, and we work with them all. So in this case, this is agent force is now resolving in this trial, 90% more than 90% of these patient increase. So you can imagine for these doctors and nurses not getting these calls, how that is, but agent force is more than that.
Marc Benioff: And even in the context of service cloud that you're referencing here, our customers are looking at their all in costs of running a call center. And when you bring a technology that allows you to scale and drive efficiencies and 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 other things that I think you should know about.
Speaker Change #103: And after the pandemic, everyone's health anxiety is just a lot higher, and doctors are to get a lot more calls.
Speaker Change #104: and nurses are just out far more active than ever before and what happens is these doctors and nurses are facing a lot of burnout. You can talk to any major health care organization and we work with them all.
Speaker Change #104: So, in this case, this is Agent Force, is now resolving in this trial 90% more than 90% of these patients in person.
Marc Benioff: Certainly our channel diversification is we think about scale and international business through resellers. There's a big upside for us. I believe there are AWS marketplaces of driver going forward. I mentioned in the 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 as 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 tradition more aggressively going forward as a way to drive growth.
Speaker Change #104: So, you can imagine for these doctors and nurses not getting these calls, how that is, but Agent Forces more than that. It's not just saying, hey, my cholesterol is higher, this is happening whatever.
Marc Benioff: It's not just saying, "Hey, my cholesterol is high" or "this is happening," whatever. It also, you're saying, what's my next step? And it said, 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, oh, yeah, that lab, you know, 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 to be agent.
Speaker Change #104: It also your same, what's my next step and I would like to reschedule.
Speaker Change #105: Doctor's appointment for you. Oh, I want to get lab screen drawn for you in 30 days, which is a common technique that a doctor will say is, oh, yeah, that lab, you know, that may not be accurate. Let's just retest.
Marc Benioff: How do we make sure that we're 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 inefficiencies using our technology. So many inputs, you know, many of them.
Speaker Change #105: Or you know what, this requires you to get a MRI or a CT scan and I've scheduled that for you and all of that is happening to the agent.
Marc Benioff: So you can imagine every healthcare company, every hospital, every organization of the world needing that. And that's not what we do today exactly; you know, 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 and labor health product. And we're still going to help, you know, coordinate and communicate and connect with all your patients, but now we're also helping to just dramatically improve the productivity of your organization.
Brian Millham: 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. Thanks Keith.
Speaker Change #106: So, you can imagine every healthcare company, every hospital, every organization of the world needing that.
Speaker Change #107: and that's not what we do today exactly, you know, 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 and we're at HealthClock.
Kasthuri Rangan: Operator will take next question, please. Thank you. Next up is cash rank in Goldman Sachs. Mark, you made my heart feel heavy as well with Sandy. You might know I used to work for Sandy long time ago. So prayers with you back to the back to the business congrats on the quarter Amy. I don't 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 and history as a very unique person at that regard.
Speaker Change #107: and we're still going to help.
Speaker Change #107: you know, 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...
Marc Benioff: Another example is very large computer hardware companies do a major acquisition and huge customer bars and they're reconceptorizing their whole business. And they just want to be a very, you know, 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, it's been a long time with him. 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 and sales and agent first and service, and we're going to turn you into a margin machine.
Speaker Change #108: A very large computer hardware company is doing a major acquisition and huge customer orders.
Marc Benioff: One macro thing. Mark, you've been through so many cycles before. I 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 that the debate is going to create so much productivity that we need fewer people. Clearly, your ideas 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 be for the penetration of seats and it might be about who is not using AI and they're going to be losers versus people that aren't using AI. So how does this play out in your view and you've been to the cloud battle and all that.
Speaker Change #108: and they're reconceptualizing their whole business.
Speaker Change #109: And they just want to be a very, you know, 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, it's been a long time, you know, I've known for a long time. Hey, you're going to build your an agent first organization.
Speaker Change #109: and you're going to be Agent First and Sales in Agent First and Service and we're going to turn you into margin machine and that's the goals of this implementation.
Marc Benioff: And that's the goals of this environment. And that is not a conversation that I've had, you know, 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 Salesforce or Service Force or Marketing Force or Commerce Force and Analytics Force or whatever. We have to build them an agent force and that is, you know, we're going from today zero percent market share and agents and obviously recall. Is to be the agent supplier to our customers, which it has to be deeply integrated into our data in 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.
Speaker Change #109: and...
Speaker Change #110: That is not a conversation that I've had with a customer for exactly like that.
Speaker Change #110: 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 service force or marketing force or commerce force and a litics force or whatever, we have to build them an agent force and that is...
Marc Benioff: So love your perspective. Thank you. Well, thanks, Kasthuri. Yes, our hearts are with Sandy's family and with his wife, Nancy and his daughters. Thank you for saying that so much.
Speaker Change #111: You know, we're going from today's zero percent market share in agents and obviously you're a couple.
Marc Benioff: You know, 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 you know it's been our lifelong dream to be able to do more with this with this company and they are a large epic user. They have a huge MR system. We do a lot of patient relationship management, which is you know just keep in touch with their customers, but this is different.
Speaker Change #111: is to be the agent supplier to our customers which
Speaker Change #111: It has to be deeply integrated into our data in our apps because these agents...
Speaker Change #111: At some point, we're going to say, actually...
Marc Benioff: 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 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's just never existed before. So I'm excited about this cash. 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.
Speaker Change #111: I want to pass you off to a human now to talk and complete this
Speaker Change #111: and there's a seamless automatic hand shake between our agents and our apps, because it's just one platform, by the way. So it's one database, one platform, seamless hand shake, it's one integrated system. That's a pretty big...
Marc Benioff: Because what happens now is, you know, we all have this experience. We go get our labs done, you know, they draw your blood, you get your numbers and then you get a number and you're in epic and it says, oh, 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 get a lot more calls and nurses are just far more active than ever before.
Speaker Change #111: And I think we can really take our customers' capabilities to a new level. This is just a part of technology that's never existed before. So I'm excited about this, Cash.
Speaker Change #111: I...
Cash: 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.
Marc Benioff: And how our team has executed on this opportunity has just been remarkable. Thanks, Cash.
Marc Benioff: 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 agent force is now resolving in this trial, 90% more than 90% of these patient increase. So you can imagine for these doctors and nurses not getting these calls, how that is, but agent force is more than that. It's not just saying, hey, my cholesterol is high or this is happening, whatever.
Unknown Executive: Operator with the next question, please.
Unknown Executive: Absolutely next is my turn ever for ISI. Yes, thanks very much, and I like the congrats on a nice quarter in Amy. Thanks so much for all your efforts over the last four years. It's been a pleasure working with you. Mark, 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.
Cash: Great thanks, Cass. I'll put it with the next question, please.
Speaker Change #113: Absolutely next year's tournament took my turn ever for ISI.
Speaker Change #114: Alright, yes, thanks very much and I'll like the congrats on the nice quarter and Amy, thanks so much for all your efforts over the last four years.
Amy Weaver: It's been pleasure working with you Marc, one of the questions that for you is obviously when the challenges with AI from an enterprise perspective has been the complexity, the security risks you've brought this up before.
Marc Benioff: 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. Well, it's a great question, and the CSAT scores and agent force right in this kind of, you know, trials have been extremely high. I think four out of five and. And customers can get going almost immediately, and we're going to prove that for them. Actually, force, and then we're going to go out there and we're going to. You know, we're going to do our world tours and all of our programs, which are going to be agent force tours. We're going to go hand in hand and work to implement tens of thousands of customers over the next six months.
Marc Benioff: It also, you're saying, what's my next step and it said, 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, oh, yeah, that lab, you know that may not be accurate. Let's just retest or you know what this requires you to get a MRI or a CT scan and I've scheduled that for you and all of that is happening to be agent.
Speaker Change #116: 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.
Speaker Change #117: Well, it's a great question, and the CSAT scores on the agent force right in this kind of trial 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, actually, force.
Marc Benioff: So you can imagine every healthcare company, every hospital, every organization of the world needing that. And that's not what we do today, exactly, you know, 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 and labor health. And we're still going to help, you know, coordinate and communicate and connect with all your patients. But now we're also helping to just dramatically improve the productivity of your organization.
Speaker Change #117: and then we're going to go out there and we're going to...
Speaker Change #117: You know, we're going to throw our world tours in all of our programs, which are going to be, you know, agent force tours, we're going to go hand in hand and work to implement tens of thousands of customers over the next six months.
Marc Benioff: And step one was building the platform that is deeply integrated. While a 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 you know, the new version of Tableau, which we've already been showing, which is awesome, is built on data clouds. You hit a button and it fully visualizes everything. So, you know, you have all your agents are working, your sales people are working, your service people are working, you're sending out these emails.
Speaker Change #117: and step one was building the platform.
Speaker Change #117: that is deeply integrated.
Speaker Change #118: 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.
Marc Benioff: Another example is very large computer hardware company is doing a major acquisition and huge customer bars. And they're reconceptorizing their whole business and they just want to be a very, you know, 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, it's been a long time with him. I've known for a long time.
Speaker Change #119: The new version of Tableau, which we've already been showing, which is awesome. There's built-on data clouds, you hit a button, and it fully visualizes everything.
Speaker Change #119: So, you know, you have all your agents are working, your sales, people are working, your service, people are working, you're sending out these emails. You're talking commerce on your website, you know, and then you hit a button and boom, Tableau visualizes all of it for you, and it's all one integrated platform.
Marc Benioff: You're talking commerce on your website, you know, and then you hit a button and Tablo 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. You know, when we bought these companies, starting with ExactTarget and Demandware and Tableau, you know, we didn't really really share like even Slack, are we going to really integrate rewrite, do we really need to loosely coupled was working really well. But now, with the shift, AI just became clear 18 months ago.
Marc Benioff: Hey, we're going to build you an agent first organization. And you're going to be agent first and sales and agent first and service. And we're going to turn you into a margin machine. And that's the goals of this implement. [inaudible] And that is not a conversation that I've had, you know, 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 Salesforce or Service Force or Marketing Force or Commerce Force and Analytics Force or whatever.
Speaker Change #119: So that's really our vision of where it's going and I think that that is...
Speaker Change #119: Very compelling for our customers, you know, when we bought these companies starting with exact target and demand where and...
Speaker Change #119: and Cablo, you know, we didn't really really sure, like even Slack, are we gonna really integrate, rewrite, do we really need to, loosely coupled, was working really well.
Marc Benioff: 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 you know, 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.
Speaker Change #119: But now with this shift AI 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.
Marc Benioff: We have to build them an agent force. And that is, you know, we're going from today 0% market share in agents and obviously recall. Is to be the agent supplier to our customers, which it has to be deeply integrated into our data in 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 one integrated system.
Speaker Change #119: System and it scales from small companies to extremely large companies and that is what I am.
Speaker Change #119: Super excited about, and we just brought all of our 500 top executives together and we.
Speaker Change #119: 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 a dream force because I think customers will just be so motivated. Not only at the quality of the new apps which are all AI driven.
Marc Benioff: 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's just never existed before. So I'm excited about this cash. 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.
Marc Benioff: 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 the huge points of differentiation. The last point is this. These customers, you know, they're still going to build models, but it's in our platform. They're still going to find two most models in our platform. They're going to still use our AI studios and build their own prompts in our platform. They're, you know, all of it runs in our platform, and that's how they deliver this incredible capability.
Unknown Executive: Thanks, Cass. Operator with the next question, please.
Speaker Change #119: 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 point to differentiation. The last point is this.
Speaker Change #120: These customers, you know, they're still going to be built.
Speaker Change #120: Models, but it's in our platform. They're still going to find two of those models in our platform. They're going to still use our AI studios and build their own props in our platform. All of it runs in our platform and that's how they deliver this incredible.
Marc Benioff: And if you see in some of the architecture and graphics and how I've changed the architecture of the, you know, and how we talk about the company, it's really bad on this one, two, three, a predatory 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 it. And it's just, it is driving me a little crazy as you probably heard. Like when I meet with these customers, 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.
Unknown Executive: Absolutely next is my turn ever for ISI. Yes, thanks very much and I'll like to the congrats on a nice quarter in Amy. Thanks so much for all your efforts over the last four years. It's been pleasure working with you. Mark, one of the questions I have for you is obviously when the challenges with AI from an enterprise perspective has been complexity, the security risks you've 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.
Speaker Change #121: K-Vivility, and if you see in some of the architecture and graphics and how I've changed the architecture of the, you know, and how we talk about the company. It's really about in this one, two, three, approach the apps, the data and the agents.
Speaker Change #121: but it's all AI-centric. It's all, and it's not, you're not going to have to DIY it. And it's 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 re-trained and they're spending a lot of money on this craziness and it's not working.
Marc Benioff: So it is a disappointment that Microsoft has convinced so many customers and others to even some of these model companies who are just regulated at this point to being commodities that, you know, that they have to be, you know, customized the stuff. It's not true. It can be done in a platform approach and it's better, easier, lower cost and work, you know, this technology, we will, we will, we, we are proving it and we'll show it and if you talk to these customers have already deployed at the open tables, the wildies, the windows, the, you know, the, the RBCs that there's a lot of customers don't want to meet these their names, so I'm cautious.
Unknown Executive: Thanks. Well, it's a great question. And the CSAT scores and agent force right in this kind of, you know, trials have been extremely high, I think four out of five and. And customers can get going almost immediately and we're going to prove that for them actually force and then we're going to go out there and we're going to. You know, we're going to do our world tours and all of our programs which are going to be agent force tours.
Speaker Change #121: So, it is a disappointment that Microsoft has convinced so many customers and others too in some of these model companies who are just regulated at this point to being commodities.
Speaker Change #121: 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.
Speaker Change #121: and this technology we are proving that and we'll show it and if you talk to these.
Unknown Executive: 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 you know, the new version of Tableau, which we've already been showing, which is awesome.
Speaker Change #122: Customers have already deployed at the open tables, the whileies, the wind them as they're.
Speaker Change #123: You know, the RBCs, there's a lot of customers, don't want it mean, they're names, I'm cautious. But they, you know, it's just very clear, this is going to really dramatically make everything better.
Unknown Executive: But they, you know, it's just very clear. This is going to really dramatically make everything better. Great. Thanks, Kirk.
Unknown Executive: Aubrey, we'll take our last question now, please.
Brent Thill: Thank you for next very last question. Will come from Brent, still Jeffrey. 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 loved to hear your perspective on your decision. And for Brian, when you look at the America's business, you were running double the JE growth. It went to one of the lowest levels we've seen our model, around eight percent. And what does it take to get back to double the JE growth? Is our saturation issues as competitive? Give us a sense of kind of what you think is happening in the America's region.
Speaker Change #124: Great, thanks, Kurt. I'll bring you a little take our last question now, please.
Unknown Executive: It's built on data clouds, you hit a button and it fully visualizes everything. So, you know, you have all your agents are working, your sales people are working, your service people are working, you're sending out these emails. You're talking commerce on your website, you know, and then you hit a button and tablo 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.
Speaker Change #125: I think everyone...
Speaker Change #126: probably wants to understand kind of why now what was the decision and maybe it.
Speaker Change #127: It's just simply 11 great years and...
Speaker Change #128: Ready for the next chapter, but I think everyone loved to hear your...
Speaker Change #128: Your perspective on your decision and...
Speaker Change #128: and for Brian, when you look at the America's business, you were running double the jig growth, it went to one of the lowest levels we've seen in our model around 8%.
Marc Benioff: You know, when we bought these companies starting with exact target and demandware and and Tableau, you know, we didn't really really share like even Slack, are we going to really integrate rewrite, do we really need to loosely coupled was working really well, but now with the shift AI just became clear 18 months ago. So 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 you know 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 a dream force 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 the huge points of differentiation.
Speaker Change #129: and what does it take to get back to double-digit growth? Is our saturation issue as competitive? Give us a sense of kind of what you think is happening in America's region.
Amy Weaver: So, Brent, I was not expecting that question, but I'm happy to address it. And again, thank you for that very nice comment, Keith Cash, Kirk, and please, you know how much I've enjoyed working with all of you. And I will certainly be on the next earnings column, possibly the one after that as we do our. Oh, no, you definitely will definitely all right. We're not not moving that fast on the third. So we'll have 20 of time. I forgot to buy at that point.
Speaker Change #130: Hi, it was not expecting that question, but I'm happy to address it.
Marc Benioff: The last point is this, these customers, you know, they're still going to build models, but it's in our platform, they're still going to find two models in our platform, they're going to still use our AI studios and build their own prompts in our platform. They're, you know, all of it runs in our platform and that's how they deliver this incredible capability and if you see in some of the architecture and graphics and how I've changed the architecture of the, you know, and how we talk about the company it's really bad on this one, two, three, a predatory apps, the data and the agents.
Speaker Change #130: And again, thank you for the very nice comments, Kate Cashkurt and please know how much I've enjoyed working with all of you and I will certainly be on the next earnings cone possibly the one after that as we do our best. Oh, no, you definitely will. Oh, yes, we're not moving that fast on the search. So we'll have 20 of time. I forgot to advise at that point.
Amy Weaver: In terms of my decision, it has been an absolutely extraordinary 11 years. I think a journey of just a journey that anyone would be extraordinarily lucky to have. The last four years have been amazing as CFO. You know, 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 was almost double the operating margin.
Speaker Change #131: It was my decision. It has been an absolutely extraordinary 11 years. I think, a journey of, um,
Speaker Change #132: and just a journey that anyone would be extraordinarily lucky to have. The last four years have been amazing as CFO. You know, I really came in and I remember doing a listening tour with our shareholders. My first full month. And they told me to talk to you things on their minds. We're up margin and delusion.
Speaker Change #132: and I set out to see what we could do on both of those and nearly four years later, we've raised almost double the operating margin and it was 17% my first year. We're going to be close to 33% this year.
Amy Weaver: It was 17% my first year. We're going to be close to 33% this year. We initiated a buyback program with close to 20 billion shares or not share sorry dollars 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 managed to pack in about four decades of CFO experiences in four years.
Speaker Change #132: We initiated a buy-back program with close to 20 billion shares or not shares, sorry, dollars.
Speaker Change #132: Put back, and this year we layered in a dividend program. We have dealt with.
Speaker Change #132: All sorts of other incredible opportunities along the way I think I managed to pack in about four decades of FFO experiences in four years.
Amy Weaver: 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.
Speaker Change #132: This feels like the right time for me, really focused on a very smooth transition, finding the next CFO.
Amy Weaver: So thank you for the question, and Brian, over to you. Right on a tough transition from that. I, Brent, thanks for the question. First of all, as you know, America is the biggest business. We have sales force, 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 environments weighted heavily in that market.
Speaker Change #132: Making sure to relax and recharge and looking at new adventures.
Marc Benioff: But it's all AI centric it's all and it's not you're not going to have to DIY it and it's just it is driving me a little crazy as you probably heard like when I meet with these customers, 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 even some of these model companies who are just regulated at this point to being commodities that, you know, that they have to be, you know, customized the stuff it's not true.
Brent: Thank you for the question and Brian, ever to you. I have a lot of tough transition from that. I, Brent, thanks for the question. First of all, as you know, America is the biggest business we have at Salesforce and we've had a ton of success for many, many years.
Speaker Change #134: I would not characterize that market is saturated and I would not say the competition is withholding its 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.
Brian Millham: 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 in the multi-cloud deals that we're bringing in 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, very much before to see in that growth back at double digits in the Americas.
Speaker Change #134: and so it's going to feel the measured buying of ours weighted heavily in that market and so
Marc Benioff: It can be done in a platform approach and it's better easier, lower cost and work, you know, this technology, we will, we will, we, we are proving in it and we'll show it and if you talk to these customers have already deployed at the open tables, the wildies, the windows, the, you know, the, the RBCs that there's a lot of customers don't want to meet these their names, so I'm cautious. But they, you know, it's just very clear, this is going to really dramatically make everything better.
Speaker Change #134: 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 in, the multi-cloud deals that we're bringing.
Speaker Change #134: 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, a 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 the future.
Unknown Executive: Great thanks Kirk, Aubrey and we'll take our last question now, please.
Speaker Change #135: Thanks for the question, and I'm very much looking forward to seeing that growth back at double digits in the Americas. Yeah, Sebastian, you've heard all these great things about a general counsel becoming a CFO, don't you think you should be, you want to put your hat in the ring here? I think we're going to have some incredible internal talent, external candidates, and really, you know, to get the right person to really take Salesforce and our entire ecosystem, especially all of our customers across every industry.
Brian Millham: Yes, it's fast, and now you've heard all these great things about a general counsel becoming CFO. Don't you think you want to put your hat in the ring here? I think we're going to have some incredible internal talent, external candidates, and really, you know, to get the right person to really take sales force and our entire system, especially all of our customers across everywhere. Very good. Thank you so much. Great. Thanks, Brent.
Brent Thill: Thank you for next very last question will come from Brent still Jeffrey.
Amy Weaver: 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 loved to hear your perspective on your decision. And for Brian, when you look at the America's business, you were running double digit growth. It went to one of the lowest levels. We've seen our model run eight percent. And what does it take to get back to double digit growth?
Unknown Executive: Thanks everyone for joining, and we look forward to seeing you and speaking with you over the coming weeks. Thanks all.
Speaker Change #136: Thank you so much. Great, thanks, Brendan. Thanks everyone for joining and we look forward to seeing you and speaking with you over the coming weeks.
Unknown Executive: Once again, everyone, that does conclude today's conference. Thank you all for your participation. You may now disconnect. Goodbye. Bye.
Speaker Change #136: Thank you all.
Speaker Change #137: Once again, everyone, that does conclude today's conference. Thank you all for your participation. You may now disconnect.
Speaker Change #137: Good bye!
Amy Weaver: Is our saturation issues as competitive, give us a sense of kind of what you think is happening in America's region? So, Brian, I was not expecting that question, but I'm happy to address it. And again, thank you for the very nice comments, Keith Cash, Kirk, and please, you know, how much I've enjoyed working with all of you. And I will certainly be on the next earnings column, possibly the one after that as we do. Oh, no, you definitely will. All right. We're not not moving that fast on the third. So we'll have 20 of time. I forgot to buy at that point.
Amy Weaver: In terms of my decision, it has been an absolutely extraordinary 11 years. I think a journey of just a journey that anyone would be extraordinarily lucky to have the last four years have been amazing as CFO. You know, I really came in and I remember doing a listening tour with our shareholders, my first couple months. 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.
Amy Weaver: And nearly four years later, we've raised, was almost double the operating margin. It was 17 percent my first year. We're going to be close to 33 percent this year. We initiated a buyback program with close to 20 billion shares or not share sorry dollars 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 managed to pack in about four decades of CFO experiences in four years.
Brian Millham: 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. Right on a tough transition from that. I, Brent, thanks for the question. First of all, as you know, America is the biggest business we have sales force and where we've had a ton of success for many, many years.
Brian Millham: I would not characterize that market is saturated and I would not say the competition is withholding its 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 environments weighted heavily in that market. And so I would not position it that way that we're saturated at all.
Brian Millham: In fact, I think when you look at our new technology, the new innovation that's come in the multi-cloud deals that we're bringing in 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 a 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 the future. So thanks for the question and very, very much before to see in that growth back at double digits in the Americas.
Marc Benioff: Yes, it's fast and now you've heard all these great things about a general council become a CFO. Don't you think you want to put your hat in the ring here? I think we're going to have some incredible internal talent, external candidates and really get the right person to really take sales force and our entire ecosystem, especially all of our customers across everyone. Very good. Thank you so much. Great. Thanks, Brendan. Thanks everyone for joining and we look forward to seeing you and speaking with you over the coming weeks. Thanks all. Once again, everyone, that does conclude today's conference. Thank you all for your participation. You may not disconnect. Goodbye. Bye.