Q1 2027 Salesforce Inc Earnings Call

Speaker #1: Searsock getting slammed.

Speaker #2: It's not the end of software. It's the end of software that makes humans do all the work. So what's replacing it? Software that listens.

Speaker #2: Software that understands. Software that can actually do. And once you see it, there's no going back.

Speaker #3: We're going to this incredible new world, the agentic enterprise.

Speaker #4: Salesforce reports.

Speaker #3: I'm seeing accelerated revenue from robust top-and-bottom line feed. We're doing more cash flow gym than Walmart. It's all about the agentic enterprise, the best companies in the world are doing this right now.

Speaker #2: Data is everything for an agentic enterprise.

Speaker #5: The foundation layer is always data. We have to get the data right.

Speaker #6: Data 360 is at the heart of our infrastructure.

Speaker #2: We can activate that data to make sure that they're getting the care that they need.

Speaker #7: Sales service the marketing engine. Salesforce is the one company that had all of the tools in the toolbox.

Speaker #8: And with agent force, it takes us to that next level.

Speaker #3: Our agents now have encyclopedic knowledge.

Speaker #9: It was in that moment that we knew agent force was the answer.

Speaker #3: And all of this is being front-ended by Slack.

Speaker #2: Having agent force data 360, Tableau integrated in Slack.

Speaker #10: All of a sudden you have a supercharged business.

Speaker #2: It's the power of all of the technologies working together.

Speaker #3: This is the agentic enterprise.

Speaker #11: Big companies are using agent force.

Speaker #3: Agent force is now an $800 million business. Customers aren't going to deploy just one agent. There's going to be many agents. Salesforce headless 360 changes the way that your company works.

Speaker #4: Everything in Salesforce is now exposed as an API, MCP, or CLI command.

Speaker #3: Headless 360 is the biggest growth opportunity that any of us will see in our lifetime. To see the velocity, agents are participating in a quarter of a million consumer engagements.

Speaker #8: Agent force voice will be a game changer.

Speaker #12: Agent force, give me more information about the job.

Speaker #13: The subject of this order.

Speaker #14: And the cost savings is just unbelievable.

Speaker #2: 12 days we launched our first agent. Saved us $2 million since we launched it.

Speaker #3: Penfret was able to save $30,000 minutes per day.

Speaker #2: By being able to bring our Salesforce data into Slack, I've seen our time in the deal deck stages go down by up to 60%.

Speaker #4: Slackbot truly is the ultimate teammate.

Speaker #9: We've saved and made at least $4.5 million just because of how we're using Slack.

Speaker #15: Slack is our operating system. We run our whole business in Slack.

Speaker #2: The Salesforce platform has allowed our providers to see 40% more patients every day. You can do that without the agentic enterprise. We're about $30 billion today.

Speaker #2: We can be a $60 billion firm on the Salesforce platform.

Speaker #3: It's driving down costs and in the end just having a better service experience.

Speaker #2: CSAT goes up. Cost to deliver go down. Customers are happier. We're getting them answers faster. It's just incredible opportunity for all these businesses. Run on Salesforce today, you're nuts if you don't.

Speaker #1: 22%, quarter over quarter no greater, example of, the tremendous, adoption of these new agentic products by our customers. And how we've converted those into 3.8 billion agentic, work units.

Speaker #1: Now, let me tell Now let me tell you about the you about these amazing Q1 amazing Q1 numbers. Revenue numbers: revenue was was 11.13 11.13 billion, a billion at 13% year-over-year 13% year-over-year nominal, model.

Speaker #2: I think we're a new era of agents enabling you that's really where the magic is. Human beings, agent duty. This is the agentic enterprise.

Speaker #1: Agentic AI, well, it's the biggest growth opportunity for our customers, for us at Salesforce. And since we brought CRM into the cloud, we're just seeing tremendous new innovation every single day.

Speaker #16: At this time, I would like to welcome you to the Salesforce first quarter fiscal 2027 conference call. This conference is being recorded and all lines have been placed on mute to prevent any background noise.

Speaker #1: And you can see it in our products, you can see it in our customer momentum, you can see it in our results. Salesforce has never been more essential to our customers.

Speaker #1: Pretty basis points. Pretty awesome. And we know awesome. And we delivered— we're 6 points beyond, points to the OVEN, 6.7— $6.7 billion in operating cash flow.

Speaker #1: We're gonna hear from them in just a second. And we're the number one agentic CRM, transforming every We have a company into company into an agentic enterprise.

Speaker #1: We're gonna hear from them in just a second. And we're the number one agentic CRM, transforming every We have a company into company into an agentic enterprise. an agentic enterprise.

Speaker #16: After the speakers prepared remarks, there will be a question and answer session. At this time, I would like to turn the call over to Mike Spencer, Executive Vice President of Finance.

Speaker #16: Sir, you may begin.

Speaker #1: We're going Salesforce. We're gonna talk about that to talk about that today. today. And OpenAI's And OpenAI and Anthropic Google, profit, Google companies building the future of companies building the future of AI.

Speaker #17: Good afternoon and thanks for joining us today on our fiscal 2027 first quarter results conference call. Our press release, as you see filings, and our replay of today's call can be found on our website.

Speaker #1: And 12% in cost of and 12% in cost of currency. currency CRPO, 33.6 CRPO 33.6 billion, billion. Up approximately up approximately 14% 14% model, and nominal, and 13% in cost 13% in cost of currency.

Speaker #17: Joining me on the call today is Mark Benioff, Chair and CEO. Robin Washington, Chief Operating and Finance Officer. We also have Patrick Stokes, President and Chief Marketing Officer.

Speaker #1: We Agentforce. We secure a record secured a record 98 98 Q1 deals, Q1 deals with over 1 million over 1 billion in new dollars in new ACV in the HPV in the quarter, 98 Q1 quarter, 98 Q1 deals with over deals with over a million dollars.

Speaker #1: And of currency. And Q1, non-capital Q1, non-gap operating margin of created margin of 34.8%, up 34.8%, up 250 basis 250 basis points. Again, points.

Speaker #1: Again, it's directly up this hitting some record levels. Gap operating margin gap offering margin of of 21.1%, up 330 21.1%, up 130 basis points.

Speaker #17: Miguel Milano, President and Chief Revenue Officer. And Srini Thalapragada, President and Chief Engineering and Success Officer, joining us for the Q&A portion of the call.

Speaker #1: a million dollars. Miguel is going to talk Miguel's gonna talk about that about that today. today. Organizations like Organizations like LVMH, Chobani, the OpenAI, Cobani, US Air Force, which by the US Air Force, which by the way, way, just signed the deal with just signed a new 72 million 72 million ELA with us dollar ELA with us during the quarter.

Speaker #17: Some of our comments today may contain forward-looking statements that are subject to risks, uncertainties, and assumptions, which could change. Should any of these risk materialize, or should our assumptions prove to be incorrect, actual company results or outcomes could differ materially from these forward-looking statements.

Speaker #1: Tens of cash flow. Tens of thousands of thousands of businesses across every businesses across every industry are building their industry are building their enterprise with agentic enterprises with Salesforce.

Speaker #1: And combined dollars. And combined with data 360 with Data 360 and Informatica and a dramatic cloud to deliver Cloud, we've delivered 3.4 3.4 billion in billion in AI and data AI and data in our ARR.

Speaker #17: A description of these risks, uncertainties, and assumptions, or other factors that could affect our finance results or outcomes is included in our SEC filings, including our most recent report on Forms 10-K, 10-Q, and any other SEC filings.

Speaker #1: All of them, Salesforce AI, all of them Salesforce customers, all of our customers, all of them Slack—them Slack customers. Building these customers, building incredible new, incredible new capabilities—capabilities with, with Agent Force.

Speaker #1: 50% of Agent 50% of Agentforce and data 360. Both of Force and Data 360 bookings, or you were from existing customers from existing customers, expanding their expanding their commitment and to make the commitment.

Speaker #1: And to date, we processed process 28.6 trillion 28.6 trillion tokens tokens. Up up 152% quarter over 142% quarter to quarter. And converting quarter. And converted them into that with a 3.8 billion, as I 3.8 billion by this year, mentioned already, agentic work agentic work units for our customers, units for our customers, up up 11%, 11%.

Speaker #17: Except as required by law, we do not undertake any responsibility to update these forward-looking statements. As a reminder, our commentary today will include non-GAAP measures, reconciliations between our GAAP and non-GAAP results, and guidance can be found in our earnings materials and press release.

Speaker #1: I'm sorry, up sorry, up 111% 111% quarter over quarter over quarter. Agentforce quarter. Agent Force now now powering every customer pro-powering every customer 360 360 applications and it's application, and it's changing how changing how organizations operate organizations operate across service, sales, across service, sales, marketing, commerce, and so marketing, commerce, and so much more.

Speaker #1: during the quarter. Awesome. And we're Awesome. And we're seeing incredible seeing incredible demand for Agentforce today demand for Agent Force with ARR now greater on the operating 1 billion than a billion dollars.

Speaker #17: And with that, let me hand the call over to Mark.

Speaker #18: All right. Fantastic. Thanks so much, Mike. I'm so excited to be here with everybody and great to do our second video earnings call with you and it's really great.

Speaker #1: With Agent Force service, service. Humans and agents humans and agents collaborate across every collaborate across every channel, from first channel, from first contact to first contact to first resolution across the resolution across the trinity of channels, journey of channels, voice, website, voice, website, apps.

Speaker #18: It's a gorgeous day in San Francisco and we're going to have a great time here with you. We've even got a couple customers joining us, which we're really excited about.

Speaker #18: Well, I think as everybody can see, this was really an outstanding quarter. For Salesforce, we have delivered record revenue, record deals, and just incredible cash flow.

Speaker #1: A great app, a great example you can share—and the example you're going to hear in a moment: the UCLA moment to feel like help.

Speaker #18: And of course, I think we've also returned record levels to our investors and we're going to talk about that and how important that is, especially during this unusual time so we're going to come into that and also by the way, we also mentioned we have some record token counts.

Speaker #1: it's a great UCLA. it's a great example using example using our most current our most current version of version of Agent Force. And Agentforce.

Speaker #1: much more. Nowhere does more Nowhere is this more evident than in effort than in customer service was to customer service. Let's just start right start right there with Agentforce there.

Speaker #18: I think we're going to talk about how we processed 28.6 trillion tokens up 152% quarter over quarter, no greater example of the tremendous adoption of these new agentic products by our customers.

Speaker #18: And how we've converted those into 3.8 billion agentic work units. Agentic AI, well, it's the biggest growth opportunity for our customers, for us at Salesforce, and since we brought CRM into the cloud, we're just seeing tremendous new innovation every single day.

Speaker #1: If you go Health. If you go to UCLA, to UCLAhealth.org, you'll UCLAhelp.org, you'll see right away see right away Agent Force is there to help Agentforce is there to help you get your you get your questions questions answered, to understand, connect answered, to under-connect with their with your physician, to connect with physicians, to connect with their technology your technology at at UCLA.

Speaker #18: And you can see it in our products. You can see it in our customer momentum. You can see it in our results. Salesforce has never been more essential to our customers.

Speaker #1: And since we deployed since we deployed Agent Force on Agentforce on help.salesforce.com and on help.salesforce.com and on many other 1-800-NO-SOFTWARE, well, only 15 software, only 15 months ago, it's a months ago, it's autonomously handled conversely handled map, 4 billion inquiries.

Speaker #18: We're going to hear from them in just a second. And we're the number one agentic CRM, transforming every company into an agentic enterprise. Now let me tell you, about these amazing Q1 numbers, revenue was 11.13 billion, up 13% year over year in nominal and 12% in constant currency.

Speaker #1: now 4 million inquiries. It's now double what human agents are handling. Every customer. It's now double what human agents are handling every. 24 million users only, 37 reps.

Speaker #18: CRPO 33.6 billion, up approximately 14% nominal and 13% in constant currency. And Q1 non-GAAP operating margin of 34.8%, up 250 basis points. Again, hitting some record levels.

Speaker #1: Kind of hard to believe, but it's possible because it's agent Vivina, autonomously handles order status, lookups, account questions, more autonomously slashing resolution time by 70%.

Speaker #1: We have the – it has been transformed. There is a big, a big growth. So now the ROI of those clouds is higher. So there are pockets of users that before couldn't afford buying us, now they're buying. Seven of the top 10 deals included.

Speaker #1: McAfee has a, selected our new Agentforce ITSM product, or what we call Agentforce I-IT service, to replace ServiceNow. They are using it for everything: ticket deflection, hardware provisioning, incident man-management.

Speaker #18: GAAP operating margin of 21.1%, up 130 basis points. Pretty awesome. And we delivered 6.7 billion in operating cash flow. Tens of thousands of businesses across every industry are building their agentic enterprises with Salesforce.

Speaker #1: Really cool. And Florida Prepaid, a college savings plan provider with more than 200,000 accounts, is using Agentforce Voice to autonomously handle 75% of business hour calls and 100% of after-hour calls.

Speaker #18: We're going to talk about that today. And OpenAI, Anthropic, Google, companies building the future of AI, all of them Salesforce customers, all of them Slack customers.

Speaker #1: And with Agentforce Sales, we're powering the entire revenue lifecycle from first lead, the closed deal, and as I said before, over 25 years, sale Salesforce has generated tens of millions of leads.

Speaker #18: Building these incredible new capabilities with Agentforce. We secured a record 98 Q1 deals with over 1 million dollars in new ACV in the quarter, 98 Q1 deals with over a million dollars, Miguel is going to talk about that today.

Speaker #1: We never called back. In Q1 alone, Agentforce Sales worked 220,000 leads autonomously, generating 42 million dollars in pipeline. Awesome. So I'm more excited about what our customers are doing in service, in sales, in marketing, in Slack, in all of these things.

Speaker #18: Organizations like LVMH, Chobani, the US Air Force, which by the way, just signed a new 72 million dollar ELA with us during the quarter.

Speaker #18: Awesome. And we're seeing incredible demand for Agentforce with ARR now greater than a billion dollars. And combined with Data 360 and Informatica Cloud, we've delivered 3.4 billion in AI and data ARR.

Speaker #1: Another great example, cybersecurity leader Fortinet, using Agentforce Sales to power predictive lead scoring, financial leader, Agribank, now build an S-SDR agent that instantly qualifies leads on WhatsApp.

Speaker #18: 50% of Agentforce and Data 360 bookings. We're from existing customers expanding their commitment. And to date, we processed 28.6 trillion tokens up 152% quarter over quarter.

Speaker #1: You can go to salesforce.com and even see our own qualification system, running right on our homepage as well. Okay. In Q1, we completed the acquisition to qualified and integrated Piper, their SDR agent into Salesforce, brought all those great Salesforce alumni back home, more than 700 customers are already using Piper.

Speaker #18: And converted them into 3.8 billion, as I mentioned already, agentic work units for our customers, up 11%, sorry, up 111% quarter over quarter. Agentforce now powering every customer 360 application and it's changing how organizations operate across service sales, marketing, commerce, and so much more.

Speaker #1: It's an incredible success. And we deployed Piper on Salesforce.com, as I mentioned, so you're gonna be able to use it firsthand. I think that's so great.

Speaker #1: It's engaging 50% of our traffic and qualifying thousands of leads and delivering 45% more pipeline than traditional web agents. Also very excited about our new Agentforce coworker, which we announced last week.

Speaker #18: Nowhere is this more evident than in customer service. Let's just start right there. With Agentforce service, humans and agents collaborate across every channel, from first contact to first resolution across the Trinity of channels, voice, website, apps.

Speaker #1: If you haven't heard about that, every single one of our Salesforce applications now comes with a built-in autonomous agent. No complex configuration. You just turn it on.

Speaker #18: A great example you're going to hear in a moment, UCLA Health. If you go to UCLAhealth.org, you'll see right away Agentforce is there to help you get your questions answered, to connect with their physicians, to connect with their technology at UCLA.

Speaker #1: It becomes your coworker. Finding answers, taking action, getting work done fast. To give you an idea of the impact that coworker will have, people search for information inside Salesforce, 1 billion times a month.

Speaker #18: It's a great example using our most current version of Agentforce. And since we deployed Agentforce on help.salesforce.com and on 1-800-NO-SOFTWARE, well, only 15 months ago, it's autonomously handled now 4 million inquiries.

Speaker #1: Coworker turns search into answers, and answers into action. And one of our trailblazers, Andrew Russo, you probably saw him respond directly to me on X, kind of was a surprise, but he said, "There's no way this is real life right now.

Speaker #18: It's now double what human agents are handling. Every customer can turn this on now. So many customers are seeing incredible results with Agentforce service.

Speaker #1: Agentforce coworker was able to pull together and navigate our complex sales and ERP data to answer questions that just yesterday would have been 60 minutes of swivel chairing, between screens and systems, it was pretty cool to see that." And, I'll tell you, this quarter, we also announced headless 360.

Speaker #18: Vivino, the world's largest wine company, supporting 74 million users with only 37 reps. Kind of hard to believe, but it's possible because it's agent Vivina, autonomously handles order status, lookups, account questions, more autonomously slashing resolution time by 70%.

Speaker #1: Again, making all of Salesforce accessible through our MCP clients, APIs, CLA prompts, headless 360, bringing together the humans, agents, and headless platforms so you can use Salesforce with any coding agent across any surface.

Speaker #18: McAfee has selected our new Agentforce ITSM product, or what we call Agentforce IT service, to replace ServiceNow. They are using it for everything: ticket deflection, hardware provisioning, incident management.

Speaker #1: It's gonna speed implementations, drive consumption, more actions, more workflow, more data, more intelligence, all compounding across Salesforce. We're meeting our customers where they are since launch in April.

Speaker #18: Really cool and Florida prepaid, a college savings plan provider, more than $200,000 accounts is using Agentforce voice to autonomously handle 75% of business hour calls and 100% of after-hour calls.

Speaker #1: We've already processed 4.5 million MCP calls into our platform. Q1 alone, we processed nearly a trillion API calls. Incredible. And with headless 360, indeed, is building and deploying Agentforce agents right from cursor.

Speaker #18: And with Agentforce sales, we're powering the entire revenue lifecycle from first lead, the closed deal, and as I said before, over 25 years Salesforce has generated tens of millions of leads.

Speaker #1: And just eat take away one of the leading online food delivery platforms in Europe. We just had them speak to our entire management team.

Speaker #18: We never called back. In Q1 alone, Agentforce sales worked 220,000 leads autonomously generating 42 million dollars in pipeline. Awesome. So I'm more excited about what our customers are doing in service, in sales, in marketing, in Slack, in all of these things.

Speaker #1: It was such an amazing story. Is using headless 360 already, to bring agents into WhatsApp and other channels, engaging with 350,000 partners, across 15 countries.

Speaker #1: So now let's talk about our favorite Slack, which every AI company in the Bay Area here is using to run their business, including OpenAI and Anthropic.

Speaker #18: Another great example, cybersecurity leader Fortinet, using Agentforce sales to power predictive lead scoring, financial leader, Agribank, now build an SDR agent that instantly qualifies leads on WhatsApp.

Speaker #1: Transforming our customers into agentic enterprise. Slack was nearly half of our million-plus wins this quarter. Up 80% year over year. It is a rocket ship to the moon.

Speaker #18: You can go to salesforce.com and even see our own qualification system, running right on our homepage as well. Okay, in Q1, we completed the acquisition to qualified and integrated Piper, their SDR agent into Salesforce, brought all those great Salesforce alumni back home.

Speaker #1: All of the AI companies run on Slack, as I mentioned. I don't think there's a startup or next-gen AI company that doesn't run on Slack.

Speaker #1: Anthropic calls Slack its core operating system. And that's what Slack is becoming for every enterprise. All of our apps are Slack-first. So now with service agent, you can summarize a case, update the record, escalate to a human right in Slack.

Speaker #18: More than 700 customers are already using Piper. It's an incredible success. And we deployed Piper on Salesforce.com. As I mentioned, so you're going to be able to use it firsthand.

Speaker #1: And Slackbot is also an MCP client. So you can tell it to create a purchase order in NetSuite or update a project in Jira.

Speaker #18: I think that's so great. It's engaging 50% of our traffic and qualifying thousands of leads and delivering 45% more pipeline than traditional web agents.

Speaker #1: And it happens. No switching tools. We've seen 1 million users of Slack MCP in the first six weeks, and Slack AWUs grew nearly 350% quarter over quarter.

Speaker #18: Also very excited about our new Agentforce coworker, which we announced last week. If you haven't heard about that, every single one of our Salesforce applications now comes with a built-in autonomous agent.

Speaker #1: In two years, there'll be more agents using Slack than people. Every one of those agents needs the context and the data and the insights directly from Slack.

Speaker #18: No complex configuration. You just turn it on. It becomes your coworker. Finding answers, taking action, getting work done fast. To give you an idea of the impact that coworker will have, people search for information inside Salesforce, 1 billion times a month.

Speaker #1: Every workflow needs the data. Every action needs the integration. And every customer needs to see what's happening across the entire business. We have the largest collection of trusted CRM context ever assembled, between Data 360, Informatica, MuleSoft, Tableau, Manage, and deliver all that context so that any agent can reason, act, and deliver real outcomes.

Speaker #18: Coworker turns search into answers and answers into action. And one of our trailblazers, Andrew Russo, you probably saw him respond directly to me on X, kind of was a surprise, but he said, "There's no way this is real life right now.

Speaker #1: Informatica has an amazing acquisition. It performed incredibly well this quarter. It's doing the heavy lifting in data management that every customer needs to move from pilot to production.

Speaker #18: Agentforce coworker was able to pull together and navigate our complex sales and ERP data to answer questions that just yesterday would have been 60 minutes of swivel cheering, between screens and systems, it was pretty cool to see that." And I'll tell you, this quarter, we also announced headless 360.

Speaker #1: All of this is why we're the number one agentic CRM. And we provide what every company needs to become an agentic enterprise. Okay. So now let's keep going.

Speaker #1: And with headless 360, the entire platform is accessible. We have some new people joining us at the table, so it's very exciting. Great to see you, buddy.

Speaker #18: Again, making all of Salesforce accessible through our MCP clients, APIs, CLA prompts, headless 360, bringing together the humans, agents, and headless platforms so you can use Salesforce with any coding agent across any service.

Speaker #1: And we're transforming and, more importantly, our customers are transforming too. Okay. All right. Anyway, here we are. let's move on to what's really important.

Speaker #18: It's going to speed implementations, drive consumption, more actions, more workflow, more data, more intelligence, all compounding across Salesforce. We're meeting our customers where they are since launch in April.

Speaker #1: So welcome. Thank you for being here.

Speaker #2: All right. Thanks for having me.

Speaker #1: We're thrilled that you're here. And would you just introduce yourself to everybody? 'Cause I don't think they know you.

Speaker #18: We've already processed four and a half million MCP calls into our platform. Q1 alone, we processed nearly a trillion API calls, incredible. And with headless 360, indeed, is building and deploying Agentforce agents right from cursor and just eat take away one of the leading online food delivery platforms in Europe.

Speaker #3: I'm, James Ganka, president and CEO of PennFed Credit Union headquartered in, Tyson's, Virginia.

Speaker #1: And is this your first time in San Francisco?

Speaker #3: In a few times. Meeting with Salesforce personally.

Speaker #1: Usually, I see you in DC. So, so happy that you're here with us. And grateful that you're here. So why don't you tell us a little about, you know, you've been using Salesforce a while at PennFed.

Speaker #18: We just had them speak to our entire management team with such an amazing story. Is using headless 360 already. To bring agents into WhatsApp and other channels, engaging with 350,000 partners across 15 countries.

Speaker #1: You've had this vision of becoming an agentic enterprise. Why don't you tell us, you know, what's happening? We heard you a little bit on your earnings call.

Speaker #1: I think everyone should hear you on our earnings call too.

Speaker #3: Let me just tell you the why. So I started in financial services 25 years ago. There was 8,000—I'm sorry—18,000, 400 banks and credit unions.

Speaker #18: So now let's talk about our favorite Slack, which every AI company in the Bay Area here is using on their business, Anthropic, transforming our customers into agentic enterprise.

Speaker #3: There's 8,000 today. Think about that. 500 credit unions and banks. Are either merged or beaten out of existence every year.

Speaker #1: Amazing.

Speaker #3: And so we knew we had to change. We've been around for 91 years. And to remain relevant, we realized we needed to partner with somebody that can sort of rebuild our tech deck, to take us to a new level.

Speaker #18: Slack was nearly half of our million plus wins this quarter. Up 80% year over year. It is a rocket ship to the moon. All of the AI companies run on Slack, as I mentioned.

Speaker #1: So you were motivated. Yeah.

Speaker #18: I don't think there's a startup or next-gen AI company that doesn't run on Slack. Anthropic calls Slack its core operating system. And that's what Slack is becoming for every enterprise.

Speaker #3: Super motivated. You gotta be hungry every day. I was 6'5" like you when I started. I'm 5'6" today.

Speaker #1: All right. So now tell us a little more about what, what have you done? What's the vision?

Speaker #18: All of our apps are Slack first. So now a service agent can summarize a case. Update the record, escalate to a human right in Slack.

Speaker #3: So about two years ago, I was actually at your world tour in New York City. And I saw some other partners. Their vision of what they thought it can do for the member experience.

Speaker #18: And Slackbot is also an MCP client. So you can tell it to create a purchase order in NetSuite or update a project in Jira.

Speaker #3: When we're competing against 8,000 other firms, we gotta deliver hyper-personalization and every transaction. We do about 500 transactions a second, 160 million member transactions a year.

Speaker #18: And it happens no switching tools. We've seen 1 million users of Slack MCP in the first six weeks, and Slack AWUs grew nearly 350% quarter over quarter.

Speaker #3: They have to be right. Anywhere in the world, real-time. So we built our entire platform over the last few years. We went from about 400 platforms down to literally 12 strategic partners.

Speaker #18: In two years, there'll be more agents using Slack than people. Every one of those agents needs the context and the data and the insights directly from Slack.

Speaker #3: Our call center, our mobile, our web, and our branches all run on Salesforce. Every additional partner or tech siloed capability is a tax on innovation, is a tax on speed, and is a tax on security.

Speaker #18: Every workflow needs the data. Every action needs the integration. And every customer needs to see what's happening across the entire business. We have the largest collection of trusted CRM context ever assembled between data 360, informatica, MuleSoft, Tableau, Manage, and deliver all that context so that any agent can reason, act, and deliver real outcomes.

Speaker #3: So by building it around Salesforce, I really think it's taken me 25 years to realize Jim Collins' flywheel effect. We have 76 agents now running across operations, mortgages, IT, HR, all of our areas are adopting it to make our, our employees be more productive.

Speaker #18: Informatica has an amazing acquisition. It performed incredibly well this quarter. It's doing the heavy lifting in data management that every customer needs to move from pilot to production.

Speaker #18: All of this is why we're the number one agentic CRM. And we provide what every company needs to become an agentic enterprise. Okay, so now let's keep going.

Speaker #3: We like to say they're bionic employees now. We're not losing employees. We're able to add more value at scale—industrialized scale—with the same number of people.

Speaker #18: And with headless 360, the entire platform is accessible. We have some new people joining us at the table, so it's very exciting. Great to see you, buddy.

Speaker #3: And we're very proud of that.

Speaker #1: Well, you know, you've heard the narrative on the SAS Apocalypse. You know, everybody's heard of this crazy thing that, these AI apps are transforming, you know, software, which it definitely is true.

Speaker #18: And we're transforming and, more importantly, our customers are transforming too. Okay, all right. Anyway, here we are. Let's move on to what's really important.

Speaker #1: You know, all of our products are just so much better because of it. But, you know, how is it impacting how you're using Salesforce?

Speaker #18: So welcome. Thank you for being here.

Speaker #3: Let me let me just talk about how people make a buying decision. 'Cause I hear some of these stories.

Speaker #2: Thanks for having me.

Speaker #1: We're thrilled that you're here. And would you just introduce yourself to everybody? Because I don't think they know you.

Speaker #1: Yeah.

Speaker #3: Which somebody knocks on your door. Are you gonna open the door and give them the keys to your safe or the code to your safe, to your family's jewels?

Speaker #3: I'm James Ganka, president and CEO of PennFed Credit Union headquartered in Tysons, Virginia.

Speaker #3: So every day, a CEO of any firm is gonna get 50 cold calls. Somebody can do it different or better. How is a decision really made?

Speaker #1: And is this your first time in San Francisco?

Speaker #3: Been here a few times. Meeting with Salesforce.

Speaker #1: Usually, I see you in DC, so happy that you're here with us. And grateful that you're here. So why don't you tell us a little about you've been using Salesforce a while at PennFed.

Speaker #3: First of all, does the firm—in this case, Salesforce—have the product and service that we need? Second, do you have the engineers, the architects, the professionals to work with my team in order to bring it that vision to reality?

Speaker #1: You've had this vision of becoming an agentic enterprise. Why don't you tell us what's happening? We heard you a little bit on your earnings call.

Speaker #3: And then lastly, even if another firm had those first two, who is the firm standing behind it that can be there through good times and bad times that's gonna stand behind that product or service?

Speaker #1: I think everyone should hear you on our earnings call too.

Speaker #3: Let me just tell you the why. So I started in financial services 25 years ago. There was 8,000 I'm sorry, 18,400 banks and credit unions.

Speaker #3: When you line up all three, that's where a good trusted partnership exists. That's why we went with Salesforce. So we work with your team, literally hand in hand.

Speaker #3: There's 8,000 today. Think about that. 500 credit unions and banks.

Speaker #3: We said we wanna streamline processes. We wanna take out latency. In the code, we wanna do X, Y, or Z. Your team was there in the trenches at every level: engineers, architects, building out the vision, but then it's not just pie in the sky on a white sheet of paper.

Speaker #1: Amazing.

Speaker #3: Are either merged or beaten out of existence every year.

Speaker #1: Amazing.

Speaker #3: And we knew we had to change. We've been around for 91 years. And to remain relevant, we realized we needed to partner with somebody that can sort of rebuild our tech deck to take us to a new level.

Speaker #3: It's implementable. We have 76 agents running side by side with our employees. A good example is in our call centers. We have, agent wingman.

Speaker #1: So you are motivated.

Speaker #3: Super motivated. You got to be hungry every day. I was 6'5" like you when I started. I'm 5'6" today.

Speaker #3: I'm an aviator, so I think they named it 'cause I like wingman. Agent wingman is gonna save me nearly $1.6 million this year. It's decreased our call handle time 10% this year.

Speaker #1: All right. So now tell us a little more about what have you done? What's the vision?

Speaker #3: So about two years ago, I was actually at your world tour in New York City. And I saw some other partners. Their vision of what they thought it can do for the member experience.

Speaker #3: 50% reduction in after-call work times and 40% reduction in held calls. So better experience for the member. Remember, they can go 8,000 other institutions.

Speaker #3: When we're competing against 8,000 other firms, we got to deliver hyper-personalization and every transaction. We do about 500 transactions a second, 160 million member transactions a year.

Speaker #3: I want them to have a great experience each and every time with PennFed. It's gotta be right each and every time. Yet I want my employees to do the knowledge work, building trust in the relationship, not entering what just happened on a phone call.

Speaker #3: They have to be right. Anywhere in the world, real-time. So we built our entire platform over the last few years. We went from about 400 platforms down to literally 12 strategic partners.

Speaker #3: We have agents that listen to the phone call, transcribe it. The humans still in the loop. They approve what was just talked about. But then it's 360.

Speaker #3: If the transaction occurred in a branch, web, mobile, so the next person that deals with that consumer, that member, they know exactly the relationship.

Speaker #3: Our call center, our mobile, our web, and our branches all run on Salesforce. Every additional partner or tech siloed capability is a tax on innovation.

Speaker #3: They know what we might wanna sell them next or what they need next for their daughter, their graduation. So it's creating a hyper-personalized, omni-channel experience without having 400 people I need to meet with.

Speaker #3: It's a tax on speed. And it's a tax on security. So by building it around Salesforce, I really think it's taken me 25 years to realize Jim Collins's flywheel effect.

Speaker #3: I have 12 strategic partners that are allowing us to power the business.

Speaker #1: And, and you, you've kind of alluded to this, but obviously, thank you for your service as well. And just tell us about your members and how important they are to our country.

Speaker #3: We have 76 agents now running across operations, mortgages, IT, HR, all of our areas are adopting it to make our employees be more productive.

Speaker #3: We've been serving those. We started out as the war department credit union in 1935. We support the men and women who serve our nation across the national security community and all Americans who support them anywhere in the world.

Speaker #3: We like to say they're bionic employees now. We're not losing employees. We're able to add more value at scale, industrialized scale, with the same number of people.

Speaker #3: That's why it has to be right, correct, real-time, industrial strength. And we're very proud of that.

Speaker #1: Well, we're very proud to have you as a Salesforce customer. Before we wrap it up today, is there anything that you think other financial service leaders like yourself or other folks who are thinking about implementing agent technology should know?

Speaker #3: And we're very proud of that.

Speaker #1: Well, you've heard the narrative on the SaaS apocalypse. Everybody's heard of this crazy thing that these AI apps are transforming software, which definitely is true.

Speaker #3: It, it occurs faster than you think. So literally, we had the vision when we saw what was possible two years ago. You can build it quickly.

Speaker #1: All of our products are just so much better because of it. But how is it impacting how you're using Salesforce?

Speaker #3: The most important thing is having the right partner and not to have too many partners. Too many partners slow things down.

Speaker #3: Let me just talk about how people make a buying decision. Because I hear some of these stories with somebody knocks on your door. Are you going to open the door and give them the keys to your safe or the code to your safe to your family's jewels?

Speaker #1: Fantastic. James, we couldn't be more thrilled to have you here today.

Speaker #3: Thanks, Marco.

Speaker #1: And it's great to have you in San Francisco.

Speaker #3: Yeah. Thank you.

Speaker #1: And thanks for everything you're doing for the whole. Country and for everyone. Thank you so much. Great to be with you.

Speaker #3: So every day, a CEO of any firm is going to get 50 cold calls. Somebody can do a different or better. How is a decision really made?

Speaker #3: Thank you.

Speaker #1: All right, we're so happy to have James here. Thank you for coming to San Francisco. Unbelievable. Having him here is so great, and I think that's such a critical message.

Speaker #3: First of all, does the firm in this case, Salesforce, have the product and service that we need? Second, do you have the engineers, the architects, the professionals to work with my team in order to bring it that vision to reality?

Speaker #1: And then we have another customer with us as well, UCLA Health—another great customer. They're using AgentForce to support 450 patients a day.

Speaker #3: And then lastly, even if another firm had those first two, who is the firm standing behind it that can be there through good times and bad times that's going to stand behind that product or service?

Speaker #1: I'm not going to go through all the details. Please welcome our good friends here, Pallavi and also Michael. So, guys, welcome, and thanks for coming on the show here with us.

Speaker #3: When you line up all three, that's where a good trusted partnership exists. That's why we went with Salesforce. So we've worked with your team literally hand in hand.

Speaker #2: Thanks, Mark.

Speaker #4: Thanks for having us.

Speaker #1: Well, why don't you tell us your story? You just heard James' story. Why don't we hear your story down at UCLA Health?

Speaker #3: We said we want to streamline processes. We want to take out latency. In the code, we want to do X, Y, or Z. Your team was there in the trenches at every level: engineers, architects, building out the vision.

Speaker #1: I already told everyone to go to uclahealth.org and look at Agent Force. But can you tell us a little about what you're doing?

Speaker #2: Sure. So, we've been working with Salesforce for quite a few years, but most recently, we've consolidated into one single instance of Health Cloud.

Speaker #3: But then it's not just pie in the sky on a white sheet of paper. It's implementable. We have 76 agents running side by side with our employees.

Speaker #3: A good example is in our call centers. We have agent wingman. I'm an aviator, so I think they named it because I like wingman.

Speaker #2: And we've built on top of that with marketing cloud, data 360. And most recently, launched our first, first experiment with Agent Force. And that's a customer-facing chatbot, that just it's right now, it's only, it's only scraping our website to act as a little bit of a virtual concierge to direct patients to where they need to go.

Speaker #3: Agent wingman is going to save me nearly $1.6 million this year. It's decreased our call handle time 10% this year. 50% reduction in after-call work times and 40% reduction in held calls.

Speaker #3: So better experience for the member. Remember, they can go 8,000 other institutions. I want them to have a great experience each and every time with PennFed.

Speaker #2: It's helping with finding a provider. It's helping with general inquiries. It's helping with clinical trials. And the way I like to think about it is, each of those topics may have been a phone call.

Speaker #3: It's got to be right each and every time. Yet I want my employees to do the knowledge work, building trust in the relationship, not entering what just happened on the phone call.

Speaker #3: We have agents that listen to the phone call, transcribe it. The humans still in the loop. They approve what was just talked about. But then it's 360.

Speaker #2: There may have been an email. There may have been an onus put upon the patient, but now it's really a one-stop shop for the patient as opposed to, you know, them in a time of need.

Speaker #3: If the transaction occurred in a branch, web, mobile, so the next person that deals with that consumer, that member, they know exactly the relationship.

Speaker #2: It's getting them their answers faster.

Speaker #3: They know what we might want to sell them next or what they need next for their daughter, their graduation. So it's creating a hyper-personalized, omni-channel experience without having 400 people I need to meet with.

Speaker #1: Well, I'll tell you, it's so exciting to have you with us. And, you know, there are so many healthcare institutions doing so much for you.

Speaker #1: I actually have a press release here about CVS Health is gonna, you know, launch something tomorrow with us. And I just wanna say, you guys are way ahead of everyone else, or so many people, with a lot of conservatism in the healthcare industry and deploying agents.

Speaker #3: I have 12 strategic partners that are allowing us to power the business.

Speaker #1: And you've kind of alluded to this, but obviously, thank you for your service as well. And just tell us about your members and how important they are to our country.

Speaker #3: We've been serving those. We started out as the war department credit union in 1935. We support the men and women who serve our nation across the national security community and all Americans who support them anywhere in the world.

Speaker #1: What's your message to them in regards to—you know, I already said you can go right to your website and see it—but what is your message to your peers or to others who are considering deploying agentic technology?

Speaker #3: That's why it has to be right, correct, real-time, industrial strength. And we're very proud of that.

Speaker #1: Well, we're very proud to have you as a Salesforce customer. Before we wrap it up today, is there anything that you think other financial service leaders like yourself or other folks who are thinking about implementing agent technology should know?

Speaker #2: I would say, you know, it took a while for us to sort of dip our toe in the water in the customer-facing space. We’re doing a lot on the back end when it comes to research, but this really has an impact on our operations.

Speaker #3: It. Chris Fasser, didn't you think? So literally, we had the vision when we saw what was possible two years ago. You can build it quickly.

Speaker #2: And we took a lot of precautions. This particular product really helped us from a testing perspective. There were a lot of protocols in place that allowed us to validate every step that we were taking.

Speaker #3: The most important thing is having the right partner and not to have too many partners. Too many partners slow things down.

Speaker #1: Fantastic. James, we couldn't be more thrilled to have you here today. And it's great to have you in San Francisco. And thanks for everything you're doing for the whole.

Speaker #1: Country and for everyone. Thank you so much. Great to be with you. All right. We're so happy to have James here. Thank you for coming to San Francisco.

Speaker #2: And that offered a lot of, offered a lot of certainty for senior leadership to kind of sign off on the on the first experiment that we that we took here.

Speaker #1: Unbelievable. To have him here is so great. And I think that that's such a critical message. And then we have another customer with us as well.

Speaker #1: Outstanding. Pallavi, give us the technical know-how, the detail here. You know, we're in the SaaS apocalypse, as you know. So, how do you look at the SaaS apocalypse?

Speaker #1: UCLA Health, another great customer. They're using agent force to support 450 patients a day. I'm not going to go through all the details. Please welcome our good friends here, Pallavi and also Michael.

Speaker #1: You're a you're a you're an you're an expert in this area. You're deploying the technology. Give us your insight.

Speaker #4: Yeah, absolutely. I think, fundamentally, we're looking at this technology with our business problem in mind: healthcare systems are stretched so thin. How do we help and support our healthcare workers?

Speaker #1: So guys, welcome. And thanks for coming on the show here with us.

Speaker #4: Thanks, Mark.

Speaker #5: Thanks for having us.

Speaker #1: Well, why don't you tell us your story? You just heard James' story. Why don't we hear your story down at UCLA Health? I already told everyone to go to UCLAhealth.org and look at agent force.

Speaker #4: And how do we help and support our patients to get access to care faster? So for us, this is a technology, as is anything. How do we best utilize this technology to service and address those pain points operationally, make our staff faster, and help our patients?

Speaker #1: But can you tell us a little about what you're doing?

Speaker #4: Sure. So we've been working with Salesforce for quite a few years, but most recently, we've consolidated into one single instance of health cloud. And we've built on top of that with marketing cloud data 360.

Speaker #4: That's really what's driving us and really how we approach this. As Mike mentioned, we're using the same oversight, same policies, and procedures that we need to deploy these types of technologies.

Speaker #4: And most recently, launched our first experiment with agent force. And that's a customer-facing chatbot that just it's right now, it's only scraping our website to act as a little bit of a virtual concierge to direct patients to where they need to go.

Speaker #1: Well, Pallavi, you deployed our most current version of Agent Force. Incredible what you've done with it—and the whole multimedia experience, the integration with the call center, every capability.

Speaker #1: You're connecting your physicians, you know, delivering the technical know-how of UCLA. Right to your right to your to your clients. You know, get just give us give us your just biggest surprise, you know, deploying this technology.

Speaker #4: It's helping with find a provider. It's helping with general inquiries. It's helping with clinical trials and the way I like to think about it is each of those topics may have been a phone call.

Speaker #1: What was it that just really hit you, where you thought, "Wow, this is what everybody should know?"

Speaker #4: They may have been an email. They may have been an onus put upon the patient. But now it's really it's a one-stop shop for the patient as opposed to them in a time of need.

Speaker #4: I think with any technology implementation, the biggest thing that we take away is how much debt we've built up from a workflow standpoint—how much, you know, technical or people debt that we create.

Speaker #4: It's getting them their answers faster.

Speaker #1: Well, I'll tell you, it's so exciting to have you with us. And there's so many healthcare institutions doing so much for you. I actually have a press release here about CVS Health is going to launching something tomorrow with us.

Speaker #4: And then we get mired in this—this idea that things have to be a certain way. So this is really an opportunity for us to open the door and say there's a way we can do things differently.

Speaker #4: Can we solve the problems of yesterday and start to make a new enterprise for tomorrow? So that's really how we've been approaching it.

Speaker #1: And I just want to just say you guys are way ahead of everyone else or so many people with a lot of conservatism in the healthcare industry and deploying agents.

Speaker #4: We were excited that we were able to stand up our first agent use case that Mike led within eight months. So we're really looking forward to what's next and how we can scale and capitalize on this technology next.

Speaker #1: What's your message to them in regards to I already said you can go right to your website and see it, but what is your message to your peers or to others who are considering deploying agentic technology?

Speaker #1: All right, Mike, there's the question: what's next, and how are you going to capitalize on this technology as a next step?

Speaker #4: I would say it took a while for us to sort of dip our toe in the water in the customer-facing space. We're doing a lot on the back end when it comes to research, but this really has an impact on our operations.

Speaker #2: That's actually the other great thing about this is there's been a lot of insights that our own patients have led us down. And Agent Force has actually, it's been great about sort of consolidating and chunking each of those.

Speaker #2: So whether it’s, "What systems do we give Agent Force access to? What capabilities do we ask it to do for us?" So next, we’re looking at potential integrations with MyChart—I think that’s probably one that’s relatively high on the list.

Speaker #4: And we took a lot of precautions this particular product really helped us from a testing perspective. There were a lot of protocols in place that allowed us to validate every step that we were taking.

Speaker #4: And that offered a lot of offered a lot of certainty for senior leadership to kind of sign off on the first experiment that we took here.

Speaker #2: But, you know, we also want to start having some assistance with our back-office functions as well. So, there are a couple different things.

Speaker #1: Outstanding. Pallavi, give us the technical know-how, the detail here. It's we're in the SaaS apocalypse, as you know. So how do you look at the SaaS apocalypse?

Speaker #1: Well, I want to just thank both of you for being on the call. We're so thrilled to have you. We're thrilled to have you as a customer.

Speaker #1: And I hope you'll not only continue to drive us forward, but also inspire our other customers as well. And with that, I'm going to turn it over to Robin Washington.

Speaker #1: You're an expert in this area. You're deploying the technology. Give us your insight.

Speaker #3: Thanks a lot, Marc. Well, you've just heard the case for Salesforce as the number one agentic CRM. The financials behind it tell the same story.

Speaker #5: Yeah, absolutely. I think fundamentally, we're looking at this technology with our business problem in mind of healthcare systems are stretched so thin. How do we help and support our healthcare workers?

Speaker #3: So let me start with the drivers behind the numbers. Why is growth as durable? And how are we funding it with operational excellence? And I want to update you on our capital allocation strategy, which, as Marc said, is driving long-term shareholder value.

Speaker #5: And how do we help and support our patients get access to care faster? So for us, this is a technology, as is anything. How do we best utilize this technology to service and address those pain points operationally, make our staff faster, and help our patients?

Speaker #5: That's really what's driving us and really how we approach this. As Mike mentioned, we're using the same oversight, same policies and procedures that we need to to deploy these types of technologies.

Speaker #3: One framing note before I walk you through the quarter: this is our first quarter under the new FY27 revenue disclosure framework. As agents transform how we build, sell, and serve customers, our new framework reflects that Agent Force is now deeply embedded across every one of our applications.

Speaker #1: Well, Pallavi, you deployed our most current version of agent force. Incredible what you've done with it and the whole multimedia experience, the integration with the call center, the every capability you're connecting your physicians, delivering the technical know-how of UCLA right to your clients.

Speaker #3: So please review our earnings deck for additional details on this. Starting with our durable growth drivers, Sales, Service, and Slack are at the core of the number one agentic CRM.

Speaker #1: Just give us your just biggest surprise deploying this technology. What was it that you just really just hit you with that was like, wow, this is what everybody should know?

Speaker #3: Collectively, representing more than 60% of Q1 net new AOV. Agent Force ARR surprised and surpassed the billion-dollar mark this quarter. Our largest applications—Sales and Service—saw year-over-year seat growth, with humans and agents both expanding on the platform.

Speaker #5: I think with any technology implementation, the biggest thing that we take away is how much debt we've built up from a workflow standpoint, how much technical or people debt that we create.

Speaker #5: And then we get mired in this. This is the way that things have to be. So this is really an opportunity for us to open the door and say there's a way we can do things differently.

Speaker #3: Bookings for A1E and A4X are premium SKUs anchored in sales and service, including the value from our agentic capabilities, and grew nearly 60% year over year.

Speaker #5: Can we solve the problems of yesterday and start to make a new enterprise for tomorrow? So that's really how we've been approaching it. We were excited that we were able to stand up our first agent use case that Mike led within eight months.

Speaker #3: As customers adopt Agent Force, they expand across our platform. On average, our top 10 customers by Q1 AWU usage have increased their total Salesforce spend by 1.5x in the last year.

Speaker #5: So we're really looking forward to what's next and how can we scale and capitalize on this technology next?

Speaker #1: All right, Mike, there's the question. What's next and how are you going to capitalize on this technology as a next step?

Speaker #4: That's actually the other great thing about this is there's been a lot of insights that our own patients have led us down. And agent force has actually been great about sort of consolidating and chunking each of those.

Speaker #3: And now, with Informatica as part of Data 360, we're already unlocking synergies, with revenue growth accelerating since the acquisition. This is the flywheel we laid out at our Investor Day.

Speaker #4: So whether it's what systems do we give agent force access to, what capabilities do we ask it to do for us? So next, we're looking at potential integrations with MyChart, I think that's probably one that's relatively high on the list.

Speaker #3: And it's working. Those signals show up in the headline numbers. Q1 revenue came in at $11.13 billion, up 12% in constant currency, ahead of our guide.

Speaker #3: The outperformance was driven by Informatica's on-prem business and professional services timing. CRPO ended the quarter at $33.6 billion, up approximately 13% in constant currency, driven by continued momentum in AgentForce, Data Cloud 360, and Slack.

Speaker #4: But we also want to start having some assistance with our back office functions as well. So there's a couple of different things.

Speaker #1: Well, I want to just thank both of you for being on the call. We're so thrilled to have you. We're thrilled to have you as a customer.

Speaker #3: Both metrics were partially offset by softness in Commerce and in Tableau. We're driving durable growth through operational excellence. We call our internal playbook Customer Zero.

Speaker #1: And I hope you'll not only continue to drive us forward, but also inspire our other customers as well. And with that, I'm going to turn it over to Robin Washington.

Speaker #5: Thanks a lot, Mark. Well, you've just heard the case for Salesforce as the number one agentic CRM. The financials behind it tell the same story.

Speaker #3: We're our own first customer, leveraging our products to run our business. It's how we're building a lean, agentic enterprise and driving profitable growth. And it is keeping us on track for our FY30 Rule of 50 framework.

Speaker #5: So let me start with the drivers behind the numbers. Why our growth is durable and how we're funding it with operational excellence. And I want to update you on our capital allocation strategy, which is Mark said, is driving long-term shareholder value.

Speaker #3: In Q1, AI coding tools enabled us to double the amount of features and code shipped year over year, while simultaneously reducing incidents and defects.

Speaker #5: One framing note before I walk you through the quarter. This is our first quarter under the new FY27 revenue disclosure framework. As agents transform how we build, sell, and serve customers, our new framework reflects that agent force is now deeply embedded across every one of our applications.

Speaker #3: Slackbot, which is embedded directly into the flow of work, is now our fastest adopted AI tool in Salesforce's history, driving 3.8 million hours of annualized productivity gains for our employees.

Speaker #5: So please review our earnings deck for additional details on this. So starting with our durable growth drivers, sales, service, and Slack are at the core of the number one agentic CRM.

Speaker #3: It has become a daily driver of my own productivity as well. And disciplined execution continues to underpin our responsible capital return strategy. Underscoring our confidence in the future, we commenced the largest-ever $25 billion accelerated share repurchase, or ASR.

Speaker #5: Collectively, representing more than 60% of Q1 net new AOV. Agent force ARR surprised the billion-dollar mark this quarter. Our largest applications, sales, and service saw year-over-year seat growth, with humans and agents both expanding on the platform.

Speaker #3: Representing half of our $50 billion share repurchase authorization. Combined with our buyback program, this reduced Q1 diluted share count by 10% year over year. Our ASR alone decreased Q1 share count by 103 million shares, representing 11% of shares outstanding.

Speaker #5: Bookings for A1E and A4X are premium SKUs anchored in sales and service including the value from our agentic capabilities grew nearly 60% year over year.

Speaker #3: And it increased our Q1 non-GAAP earnings per share and GAAP earnings per share by $0.23 and $0.14, respectively. Turning to our outlook for the year.

Speaker #5: As customers adopt agent force, they expand across our platform. On average, our top 10 customers by Q1 AWU usage have increased their total Salesforce spend by 1.5X in the last year.

Speaker #3: Building on the momentum from the second half of last year, we expect first-half net new AOV growth to outpace AOV growth, and drive organic revenue re-acceleration in the second half of FY27.

Speaker #5: And now with Informatica as part of Data 360, we're already unlocking synergies with revenue growth accelerating since the acquisition. This is the flywheel we laid out at our investor day.

Speaker #3: Before discussing the numbers, a few key assumptions in our guide. Our Q2 and FY27 revenue guidance reflect continued momentum in Agentforce, Data Cloud, and Slack.

Speaker #5: And it's working. Those signals show up in the headline numbers. Q1 revenue came in at $11.13 billion, up 12% in constant currency, ahead of our guide.

Speaker #3: This was partially offset by ongoing weakness in marketing and commerce, as well as increased softness in Tableau bookings and renewals. We also expect greater license revenue volatility with the addition of Informatica on-prem revenue to our business.

Speaker #5: The outperformance was driven by Informatica's on-prem business and professional services timing. CRPO ended the quarter at 33.6 billion, up approximately 13% in constant currency.

Speaker #5: Driven by continued momentum in agent force, Data 360, and Slack. Both metrics were partially offset by softness in commerce and in Tableau. We're driving durable growth through operational excellence.

Speaker #3: Now, moving to the numbers. We are raising the midpoint of our fiscal year 2027 revenue guidance to $45.9 billion to $46.2 billion, and we continue to expect Subscription and Support growth of approximately 11% year over year in constant currency.

Speaker #5: We call our internal playbook customer zero. We're our own first customer, leveraging our products to run our business. It's how we're building a lean agentic enterprise and driving profitable growth.

Speaker #3: We are reiterating our non-GAAP operating margin guidance of 34.3%, and adjusting our GAAP operating margin guidance to 20.6%, largely driven by higher restructuring. Our recent debt issuance tied to the successful initial delivery of our ASR resulted in an approximately 5-point headwind to operating cash flow and free cash flow.

Speaker #5: And it is keeping us on track for our FY30 rule of 50 framework. In Q1, AI coding tools enabled us to double the amount of features and code shipped year over year.

Speaker #5: While simultaneously reducing incidents, and defects. Slackbot, which is embedded directly into the flow of work, is now our fastest adopted AI tool in Salesforce's history.

Speaker #3: As a result, we are updating our guidance for both metrics to grow 4% year-over-year. We expect Q2 revenue of $11.27 billion to $11.35 billion.

Speaker #5: Driving 3.8 million hours of annualized productivity gains for our employees. It has become a daily driver of my own productivity as well. And discipline execution continues to underpin our responsible capital return strategy.

Speaker #3: Growth of approximately 10% in constant currency. Q2 CRPO growth is expected to be approximately 13% year over year in constant currency. Our guidance reflects the strength of our balanced portfolio and reinforces our confidence in our second-half revenue acceleration, enabling us to achieve our FY30 framework.

Speaker #5: Underscoring our confidence in the future, we commenced the largest-ever $25 billion accelerated share repurchase or ASR. Representing half of our $50 billion share repurchase authorization.

Speaker #3: And looking ahead, the Headless 360 strategy that Marc walked through expands our addressable market into surfaces we've never previously monetized. That's the next leg of our path to FY30.

Speaker #5: Combined with our buyback program, this reduced Q1 diluted share count 10% year over year. Our ASR alone decreased Q1 share count by 103 million shares, representing 11% of shares outstanding.

Speaker #3: Back to you, Mike.

Speaker #2: Thank you, Robin. The operator would now like to move to questions. I'll ask each participant to limit themselves to one question in respect for others on the call.

Speaker #5: And it increased our Q1 non-gap earnings per share and gap earnings per share by 23 cents and 14 cents, respectively. Turning to our outlook for the year.

Speaker #2: With that, the operator will take the first question.

Speaker #3: We will now begin Q&A. For today's session, we'll be utilizing the Raise Hand feature. If you'd like to ask a question, simply click on the Raise Hand button at the bottom of your screen.

Speaker #5: Building on the momentum from the second half of last year, we expect first half net new AOV growth to outpace AOV growth. And drive organic revenue re-acceleration in the second half of FY27.

Speaker #3: Once you've been called on, please unmute yourself and begin to ask your question. Please limit yourself to one question. Thank you. We will now pause a moment to assemble the queue.

Speaker #5: Before discussing the numbers, a few key assumptions in our guide. Our Q2 and FY27 revenue guidance reflect continued momentum in agent force, Data 360, and Slack.

Speaker #3: Your first question will come from Brent Thill with Jefferies. Please go ahead.

Speaker #4: Good afternoon, Marc. I'm curious to get your thoughts and just the transformation to an AI-led story that Agent Force numbers are great to see.

Speaker #5: Partially offset by ongoing weakness in marketing and commerce, and increased softness in Tableau bookings and renewals. We also expect greater license revenue volatility with the addition of Informatica on-prem revenue to our business.

Speaker #4: But what else, in terms of what you're most excited about? What are you seeing in the signals from the customer pipeline, and any other metrics that you're excited about, that you can share with us—perhaps that we can't see?

Speaker #4: Thank you.

Speaker #5: Now moving to the numbers. We are raising the midpoint of our FY27 revenue guidance to $45.9 billion to $46.2 billion. And we continue to expect subscription and support growth of approximately 11% year over year in constant currency.

Speaker #2: Well, that's why I thought it's so important that we move to this video concept for the earnings call, and also that you get to hear directly from the customers.

Speaker #2: And I think we're trying to pick out a couple of customers every quarter that can kind of, you know—I would say that they kind of represent all of our customers in transformation.

Speaker #2: And I think that what's exciting is that the technology is really dramatically impacting how these customers are able to deliver their own results, which is why we even saw James bring this to his earnings call.

Speaker #5: We are reiterating our non-gap operating margin guidance of 34.3%. And adjusting our gap operating margin guidance to 20.6%. Largely driven by higher restructuring. Our recent debt issuance tied to the successful initial delivery of our ASR resulted in an approximately $5-point headwind to operating cash flow and free cash flow.

Speaker #2: So, I'm going to say that what we're going to do is we're going to continue to make that happen. Now, let me just give you my personal perspective.

Speaker #2: We're using it ourselves more than ever before. I kind of mentioned in the quarter, you see the service numbers. If you go to help.salesforce.com, we've delivered more than 4 million autonomous service transactions in a relatively short order. It's kind of hard to believe.

Speaker #5: As a result, we are updating our guidance for both metrics to grow 4% to 5% year over year. We expect Q2 revenue of $11.27 billion to $11.35 billion.

Speaker #2: Even if you go to 1-800-NO-SOFTWARE and you press 2, and you get into the service queue and you bypass our sales organization, you'll notice it's all autonomous.

Speaker #5: Growth of approximately 10% in constant currency. Q2 CRPO growth is expected to be approximately 13% year over year in constant currency. Our guidance reflects the strength of our balance portfolio and reinforces our confidence in our second half revenue acceleration enabling us to achieve our FY30 framework.

Speaker #2: You even kind of authenticate in autonomously. The Agent Force will work with you. And then, if at some point Agent Force kind of says it can't answer your question, it goes and then brings a human in directly to work with it in resolving your problem.

Speaker #2: Also, in the quarter, you saw we qualified huge numbers of leads autonomously. We’ve just really never been able to do that before. I think every customer is going to be doing that.

Speaker #5: And looking ahead, the headless 360 strategy that Mark walked through expands our addressable market into surfaces we've never previously monetized. That's the next leg of our path to FY30.

Speaker #2: You saw we also bought Qualified. And we have this kind of SDR, sales agent, kind of going outbound as well, helping to understand our own business.

Speaker #2: We're modeling this for all of our customers so that they can do this as well. Or even in how I'm using Slack every day—I use Slackbot to kind of give me insights into my business, to really look at everything that's happening with my core business.

Speaker #5: Back to you, Mike. Thank you, Robin. Operator would like to move to questions now. I'll ask each participant to limit to one question in respect for others on the call.

Speaker #5: With that, operator will take the first question.

Speaker #2: I can then get that insight. In every aspect of my business, agents are transforming how I operate my business. As you heard in the UCLA Health or in PEDFED, it's transforming their business from a technology perspective.

Speaker #6: We will now begin Q&A. For today's session, we'll be utilizing the raise hand feature. If you'd like to ask a question, simply click on the raise hand button at the bottom of your screen.

Speaker #6: Once you've been called on, please unmute yourself and begin to ask your question. Please limit to one question. Thank you. We will now pause a moment to assemble the queue.

Speaker #2: The biggest thing that happened in the quarter from my perspective was that Agent Force is now available and essentially replaces Salesforce Search. So, for those of you who are Salesforce users—the millions of people who use Salesforce every day—the search bar is a critical part of how the application operates.

Speaker #6: Your first question will come from Brentville with Jefferies. Please go ahead.

Speaker #7: Good afternoon, Mark. I'm curious to get your thoughts and just the transformation to an AI-led story in agent force numbers are great to see.

Speaker #2: Now, Agent Force is that search bar. So you can not only search and aggregate and get insights into information throughout every single app we have, but also create agents, and those agents can appear in Slack and Microsoft Teams and other applications—even in an app that's going to run directly on your phone called Salesforce Coworker.

Speaker #7: But what else in terms of what you're most excited about? What are you seeing in the signals from the customer pipeline in any other metrics that you're excited about that you can share with us that perhaps we can't see?

Speaker #2: That is the biggest, most exciting technology because that is going to be technology that you're not going to have to implement. You're not going to have to rebuild things.

Speaker #7: Thank you.

Speaker #5: Well, that's why I thought it's so important that we move to this video concept for the earnings call and also that you get to hear directly from the customers.

Speaker #2: All of a sudden, this agentic technology is directly enhancing every single one of our applications, from our Financial Services Cloud to our Healthcare Cloud to every app we have.

Speaker #5: And I think we're trying to pick out a couple of customers every quarter that can kind of I would say that they are kind of represent all of our customers in transformation.

Speaker #5: And I think that what's exciting is that the technology is really dramatically impacting how these customers are able to deliver their own results which is why we even saw James bring this to his earnings call.

Speaker #2: So that's what's really exciting. I just think that the speed of innovation and the speed of change is what's awesome. And then the rate of innovation, you know, far exceeds the ability for customer adoption.

Speaker #5: So I'm going to say that what I'm what we're going to do is we're going to continue to make that happen. Now, let me just give you my personal perspective.

Speaker #2: That's why bringing these customers in to help model for other customers what they can do is really mission critical right now.

Speaker #5: We're using it ourselves more than ever before. I kind of mentioned in the quarter you see the service numbers. If you go to help.salesforce.com that we've delivered more than 4 million autonomous service transactions in a relatively short order, it's kind of hard to believe.

Speaker #1: With that, it looks like we have Keith up for the next question. Keith?

Speaker #4: Excellent. Thank you, guys, for having me on the call. And congratulations on all the momentum behind Agent Force and those AWUs accelerating in the quarter.

Speaker #5: Even if you go to 1-800-NO-SOFTWARE and you press 2 and you get into the service queue and you bypass our sales organization, you'll notice it's all autonomous.

Speaker #4: I think the investor debate right now is about the timing and how that translates into strength for the broader business. And the question I wanted to ask was, where are you guys garnering your confidence of a back-half organic subscription revenue acceleration?

Speaker #5: You even kind of authenticate in autonomously. The agent force will work with you and then if at some point agent force kind of says it can't answer your question, it goes and then brings a human in directly to work with it in resolving your problem.

Speaker #4: Because we have been seeing outperformance in CRP over the last two quarters. This quarter was spot on, in line with your guidance. Last quarter was as well.

Speaker #4: And it feels like the booking trends are lagging a little bit. It feels like Tableau is dragging on the business a little bit, and Commerce Cloud is dragging on the business.

Speaker #5: Also in the quarter, you saw we qualified huge numbers of leads autonomously. We've just really never been able to do that before. I think every customer is going to be doing that.

Speaker #4: So can you help us put those two sides of the debate together? Like, really strong KPIs from Agent Force, but the bookings are not really coming through over the past two quarters.

Speaker #5: You saw we also bought qualified and we have this kind of SDR sales agent kind of going outbound as well helping to kind of understand our own business.

Speaker #4: And how do you sustain confidence in that back half acceleration?

Speaker #3: Yeah, Keith, maybe I'll start with the question and have Miguel and others chime in as well. So you're right. Overall, I would say Q1 and our Q2 guide show very strong CRPO.

Speaker #5: We're modeling this for all of our customers. So that they can do this as well. Or even in how I'm using Slack every day.

Speaker #5: I use Slackbot to kind of give me insights into my business to really look at everything that's happening with my core business. I can then get that insight.

Speaker #3: It is a leading indicator for us, but also keep in mind we raised our overall guidance for the year. And the two metrics that we've talked about, going all the way back to October, are the acceleration of net new AOV, greater than AOV.

Speaker #5: In every aspect of my business, agents are transforming how I operate my business. As you heard in UCLA Health or in FedPed, it's transforming their business.

Speaker #3: We saw that in the last half of FY26, and we also are seeing it and have huge confidence in it for the first half of '27.

Speaker #5: From a technology perspective, the biggest thing that happened in the quarter from my perspective was that agent force is now available and replaces essentially Salesforce Search.

Speaker #3: What that will lead to is a re-acceleration of our core revenue growth in the second half of the year. And that's what I'd really ask you to kind of hone in on.

Speaker #5: So for those of you who are Salesforce users, the millions of people who use Salesforce every day, the search bar is a critical part of how they application operates.

Speaker #3: There's a lot of momentum that drives behind that. We've talked about our big deal motion—Miguel can talk about it more. Clearly, we've seen the success with Agentforce and Data Cloud 360.

Speaker #5: Now, agent force is that search bar. So you can not only search and aggregate and get insights into information throughout every single app we have.

Speaker #5: But also create agents and those agents can appear in Slack, in Microsoft Teams, in other applications, even in an app that's going to run directly on your phone called Salesforce Coworker.

Speaker #3: I'd say that over 50% of those bookings came from existing customers refilling the tank. So we're definitely seeing good usage. Our pipeline is very strong.

Speaker #5: That is the biggest exciting technology because that is going to be technology that you're not going to have to implement. You're not going to have to rebuild things.

Speaker #3: We've also seen opportunity to expand our TAM, so I'll let Miguel maybe go into a little bit more detail. But I think not only about CRPO, I think about our commitment and confidence, relative to re-acceleration of growth, is really the driver of how we see our bookings going forward.

Speaker #5: All of a sudden, this agentic technology is directly enhancing every single one of our applications from our financial services cloud to our healthcare cloud to every app we have.

Speaker #2: Yeah, maybe. Thank you, Robin. Maybe to add a few other metrics under the hood a little bit—we feel very comfortable. Obviously, we like the headline numbers.

Speaker #5: So that's what's really exciting and I just think that the speed of innovation and the speed of change is what's awesome. And then the rate of innovation at far exceeds the ability for customer adoption.

Speaker #2: But I also like, in particular, the strength of our core business. You alluded to the new acceleration. We're confident in the re-acceleration of our subscription and support business, in constant currency, organically.

Speaker #5: That's why bringing these customers in to help model for other customers what they can do is really mission critical right now.

Speaker #8: With that, looks like we have Keith up for the next question. Keith.

Speaker #2: By the way, in H2, we also have another business we acquired, which is Informatica. Informatica was a business that was growing single-digit, both on bookings and revenue.

Speaker #9: Excellent. Thank you guys for having me on the call. And congratulations with all the momentum behind agent force. And those AWUs accelerating in the quarter.

Speaker #2: In just two quarters, we have significantly re-accelerated that. The bookings are off the chart, beyond anybody's expectations, because data is king. Well, my daughters told me that data is queen, because I have three daughters.

Speaker #9: I think the investor debate right now is about the timing and how that translates into strength for the broader business. And the question I wanted to ask was where you guys garner your confidence of a back half organic subscription revenue acceleration?

Speaker #2: But it's on the booking front. But on the revenue front, we've seen a huge acceleration. Now, we are in last quarter and this quarter, we are obviously subject to the timing of some of the on-prem renewals, but we are in double-digit growth.

Speaker #9: Because we have been seeing outperformance in CRP over the last two quarters. This quarter was spot in line with your guidance. Last quarter was as well.

Speaker #2: So, I like a lot of things about our core business, which is very important. You alluded to big deals—oh my God, Marc—98 deals above $1 million of net new AOV.

Speaker #9: And it feels like the bookings trends are lagging a little bit. It feels like Tableau is dragging on the business a little bit. Commerce Cloud dragging on the business.

Speaker #9: So can you help us put those two sides of the debate? Really strong KPIs from agent force, but the bookings not really looking to come through over the past two quarters.

Speaker #2: In combination, the top 10 deals focus on the top 10 deals. In combination, the whole booking, the annual incremental booking grew 60%. When you look at the TCV, which goes in the RPO, we added approximately $800 million.

Speaker #9: And how you sustain confidence in that back half acceleration.

Speaker #10: Yeah, Keith, maybe I'll start with the question. Have Miguel and others chime in as well. So you're right. Overall, I would say Q1 and our Q2 guide show very strong CRPO.

Speaker #2: That's two and a half times the same 10 deals last year, the top 10 deals. Seven—this is a beautiful statistic—seven of the top 10 deals added seats, new seats.

Speaker #2: This is the new way that we have to monetize AI. We have three new ways—three ways—and then one more way that's coming up, as you alluded to.

Speaker #10: It is a leading indicator for us, but also keep in mind we raised our overall guidance for the year. And the two metrics that we've talked about going all the way back to October is the acceleration of net new AOV greater than AOV.

Speaker #2: The first one is that we are upgrading the existing seats of our customers so that the same users, human users, can use AI unlimitedly. And this is the A1E that increased 60% in the quarter because there is a big uplift on those seats.

Speaker #10: We saw that in the last half of FY26. And we also are seeing it and have huge confidence in it for the first half of '27.

Speaker #2: Second, we are finding new pockets of seats that now, with our transformed clouds—our clouds are not the same. We've transformed individually. Every one of our...

Speaker #10: What that will lead to is a re-acceleration of our core revenue growth in the second half of the year. And that's what I'd really ask you to kind of hone into.

Speaker #10: There's a lot of momentum that drives behind that. We've talked about our big deal motion. Miguel can talk about it more. Clearly, we've seen the success with agent force and data 360.

Speaker #10: I'd say that over 50% of those bookings came from existing customers refilling the tank. So we're definitely seeing good usage our pipeline is very strong.

Speaker #1: I think we're seeing that show up in the numbers just this quarter alone. Agentforce customers in production grew by 50%. So I think we're starting to see a little bit of that impact with not just our customers, but also our global SIs.

Speaker #10: We've also seen opportunity to expand our TAM. So I'll let Miguel maybe go into a little bit more details. But I think not only about CRPO, I think about our commitment and confidence relative to re-acceleration growth is really the driver of how we see our bookings going forward.

Speaker #1: Across the entire platform—absolutely. Implementing Data 360, implementing AgentForce, implementing a service—all of this in life sciences, all of this now becomes really just a conversation.

Speaker #1: And then the biggest way that we have to monetize AI is with customer-facing use cases. We—by selling flex credits, by putting fuel in the tank—six of the top ten deals, six of the top ten deals were ILAs, unlimited enterprise license agreements, where we threw in a bunch of flex credits and customers are deploying use case after use case, channel after channel.

Speaker #1: So that's one end. But the other end is really what we heard from Miguel, which is: this is really changing how people get value from and consume Salesforce.

Speaker #8: Yeah, maybe thank you, Robbie. Maybe to add a few other metrics under the hood a little bit. We feel very comfortable. We'll obviously, we like the headline numbers.

Speaker #1: In my experience, we're not seeing people take this capability—and the coding agents, for example—and try to build all of this stuff themselves.

Speaker #8: But I also like in particular the strength of our core business. You alluded to the net new AOV acceleration. We're confident on the re-acceleration of our subscription and support business in cost and currency, the organically.

Speaker #1: They're going deterministic. They're going to voice. So I'm very confident on the reacceleration in H2, and we are very optimistic on the overall business.

Speaker #1: What they want to do is, they want to take this capability and use Salesforce in different ways to get more value out of it.

Speaker #2: And maybe the last thing I'd ask on CRPO, Keith, is remember it's also subject to renewal timing. And the more we get this flywheel growing and think about consumption, it's viewed as a leading…

Speaker #1: So rather, this idea that Salesforce was endorsing this way of working—we were basically saying, "Hey, we want you to take the value of Salesforce and the value that you get from our apps— from Sales, from Service, from Commerce, and Marketing— and we want you to be able to work however you want to work, whether that's in Slack, or whether that's in Claude, or whether that's directly in the app." That's what this capability really enables.

Speaker #8: By the way, in the H2, we also have another business that we acquired, which is Informatica. Informatica was a business that was growing single digit, both on bookings and revenue.

Speaker #8: In just two quarters, we have significantly re-accelerated that. The bookings of the chart beyond anybody's expectation because data is king. Well, my daughters told me that said data is queen because I have three daughters.

Speaker #8: But it's on the booking front, but on the revenue front, we've seen a huge acceleration. Now we are in last quarter and this quarter, we are obviously subject to the timing of some of the on-prem renewals, but we are in double digit growth.

Speaker #8: So I like a lot of things about our core business, which is very important. You alluded to big deals. Oh my God, Mark. 98 deals above a million dollars of net new AOV.

It was something that's developing over time so I think we don't necessarily exactly. It just comes shorter cycles and by the way the last huge and you you put it like a and there is 1 more thing to come. There is 1. More thing to come, which is the Headless 360. We're going to bring our agentic number, 1, agent CRM to every surface meeting customers where they are and we're going to work together with our customers and with our partners to find the right ways to in a fairly in a fair way to

Speaker #8: In combination, the top 10 deals focus on the top 10 deals. In combination, the whole booking, the annual incremental booking grew 60%. When you look at the TCV, which goes in the RPO, we added approximately 800 million dollars.

Monetize those new interactions, and those new users are accessing our platform. So, you've heard it straight from our CRO—we're very confident, right? Relative to re-acceleration of our bookings, as well as our revenue, for the second half of FY27.

Speaker #8: That's two and a half times the same 10 deals last year, the top 10 deals. Seven, this is a beautiful statistic, seven of the top 10 deals added seats, new seats.

Thank you. Keith, uh, Gabrielle, welcome. We'll take your question now.

Speaker #4: Headless here. Market team, I would love to spend a little bit of time on your headless strategy, and more specifically, how it intersects.

Good afternoon, thanks.

Speaker #8: This is the new way that we have to monetize AI. We have three new ways, three ways, and then one more way that's coming up as you alluded to.

Speaker #8: The first one is we are upgrading the existing seats of our customers so that the same users, human users can use unlimitedly AI. And this is the A1E that increased 60% in the quarter because there is a big uplift on those seats.

Speaker #8: Second, we are finding new pockets of seats that now with our transformed clouds, our clouds are not the same. We've transformed individually. Every one of our clouds, our self-cloud, I've been using self-cloud for 15 years.

Speaker #8: It's totally different. I mean, now we have agentic BDR. I can talk to my self-cloud. I mean, I don't want to say this because Parker already said it.

Speaker #8: I log into my self-cloud less because I have access to so many ways to interrogate my self-cloud. Commerce Cloud, Marketing Cloud, everything has been transformed.

Speaker #8: There is a big growth. So now the ROI of those clouds are higher. So there are pockets of users that before they couldn't afford buying us, now they're buying.

Speaker #8: Seven of the top 10 deals included. And then the biggest way that we have to monetize AI is with customer-facing use cases. By selling flex credits, by putting fuel in the tank.

Speaker #8: Six of the top 10 deals, six of the top 10 deals were ILAS, unlimited enterprise license agreement, where we threw in a bunch of flex credits and customers are deploying use case after use case, channel after channel.

Speaker #8: They're going deterministic. They're going to voice. So I'm very confident on the re-acceleration in H2. And we are very optimistic on the whole overall business.

Speaker #11: And maybe the last thing I'd ask on CRPO, Keith, is remember it's also subject to renewal timing. And the more we get this flywheel growing and think about consumption, it's viewed as a leading indicator in how it's going to change relative to our revenue is something that's developing over time.

Speaker #11: So I think we it just comes shorter sales cycles. And by the way, the last huge, and you put it like a and there is one more thing to come.

Speaker #11: There is one more thing to come, which is the headless 360. We're going to bring our agentic number one agentic CRM to every surface, meeting customers where they are.

Speaker #11: And we're going to work together with our customers and with our partners to find the right ways to, in a fairly fair way, monetize those new interactions and those new users that are accessing our platform.

Speaker #12: So you've heard it straight from our CRO. We're very confident, right, relative to re-acceleration of our bookings as well as our revenue for the second half of FY27.

Speaker #8: Thank you, Keith. Gabrielle, welcome. We'll take your question now.

Speaker #13: Good afternoon. Thanks so much, Miguel. You picked me up perfectly on headless here. Mark and team, I would love to spend a little bit of time on your headless strategy.

I think we're seeing that show up in the numbers, just this quarter alone, agent force customers in production, grew by 50%. So I think we're starting to see a little bit of that impact as not just our customers but also our Global sis across the entire platform. Absolutely implementing data, 360 implementation Force implementing a service, all of this life sciences, all of this. Now becomes really just a, a conversation. Uh, so that's, that's 1 end. But the other end, uh, is really what we heard from Miguel? Which is this is really changing how people get value and consume sales force in my experience. We're not seeing people take this capability and uh, the the coding agents for example, and try to build all of this stuff themselves. What they want to do is they want to take this capability and they want to use Salesforce in different ways and get more value out of it. So, rather than, uh, you know, logging into this discrete application, and this application and this application to get an answer to 1 question that might span multiple applications or multiple, uh,

Speaker #13: And more specifically, how it intersects with the build versus buy debate. On the one hand, Robin was talking about how it expands the opportunity and the surface area of the Salesforce.

Speaker #13: On the other hand, talk to us about how you protect your downside from potentially enabling value abstraction out of Salesforce, perhaps customers want to build things more in-house or perhaps it enables competitors or value abstraction.

Speaker #13: So talk to us a little bit about your monetization strategy and how do you protect folks from the downside? Thank you.

Kind of sources of information you can now just take these mCP servers and plug them into any tool that you want. They are inside our application. Of course, with agent force co-worker as Mark, described right up at that, search bar. If you're a slack customer, you can get to it right with slackbot. That's really a headless experience as well. But if you want to plug these into chat GPT and Claude, you can do that as well. And all of this just results in more and more value being pulled, you know, being delivered to our customers. From the Salesforce platform, I would just add to that, I think.

Speaker #8: Well, you're right. Headless is probably the most exciting announcement of the quarter. And I'd love for Patrick to come in. And Patrick is our chief marketing officer.

Speaker #8: Patrick Stokes is here. And Patrick, you want to give us a little bit of an insight into our headless strategy?

Speaker #14: Yeah, I'd love to. We were just backstage prepping for this. And we said, what did we say about headless at the last earnings call?

Speaker #14: And I realized we didn't. We were still getting ready to launch it at PDX. Right? Yeah. I mean, we hadn't even used the word yet.

Even though we just announced, it's been less than a month. Yeah, correct. I think Salesforce historically has been very open, and we got more than a trillion API calls on our core platform just in this quarter. What we have seen is, on a headless MCP, tool calls have been more than 1.5 million. So what people are doing is they're using it not only in Salesforce, where they do it with co-worker and our regular sites, they're also able to use it in their flow of work.

Speaker #14: And now it's become such a key part of our strategy and our customer strategy and how we're going to grow. It was just a TDX in March when we launched this.

Speaker #14: And I think what's so exciting about headless is two things. One, it's having a real impact on making it easier to implement with Salesforce.

Speaker #14: So building out with Salesforce is now become easier than ever because we've seen these coding agents, Claude and Codex from OpenAI, as you use these things, what you realize is you need to be able to connect the underlying APIs, which you do through this layer that's called MCP.

Speaker #14: And if you can connect those into the coding agents, it makes it faster than ever to implement and deploy Salesforce. And I think we're seeing that show up in the numbers just this quarter alone.

Speaker #14: Agentforce customers in production grew by 50%. So I think we're starting to see a little bit of that impact as not just our customers, but also our global SIs.

Speaker #14: Across the entire platform. Absolutely implementing data 360, implementing Agentforce, life sciences, all of this now becomes really just a conversation. So that's one end.

Speaker #14: But the other end is really what we heard from Miguel, which is this is really changing how people get value and consume Salesforce. In my experience, we're not seeing people take this capability and the coding agents, for example, and try to build all of this stuff themselves.

Speaker #14: What they want to do is they want to take this capability and they want to use Salesforce in different ways and get more value out of it.

Speaker #14: So rather than logging into this discrete application and this application and this application to get an answer to one question that might span multiple applications or multiple kind of sources of information, you can now just take these MCP servers and plug them into any tool that you want.

Speaker #14: They are inside our application, of course, with Agentforce Coworker, as Mark described right up at that search bar. If you're a Slack customer, you can get to it right with Slackbot.

Speaker #14: That's really a headless experience as well. But if you want to plug these into ChatGPT and Claude, you can do that as well. And all of this just results in more and more value being pulled being delivered to our customers from the Salesforce platform.

Speaker #12: I would just add to that. I think even though we just announced it has been less than a month. Right? I think Salesforce historically has been very open and we got more than a trillion API calls on our core platform just in this quarter.

Speaker #12: What we have seen is on headless MCP tool calls have been more than 1.5 million. So what people are using is they're using it not only in Salesforce, where they do with regular sites.

Speaker #12: They're also able to use it in their flow of work. Similarly, on we announced the headless MCP server for Slack. And Slack has done 30 million 50 million tool calls.

Speaker #1: That we committed. And listen, when you commit something 12 to 18 months in advance, I mean, we're good professionals, but we're not magicians.

Speaker #2: Yes.

Speaker #1: And we do—I mean, there was a probability that it could not have happened, but we were very firm, and it's—I mean, I'm very happy that we're executing as per plan.

Speaker #12: So what we are finding is there is a latent demand where people want to use Salesforce in their flow of work, but they need a trusted infrastructure.

Speaker #1: In fact, a little bit better than plan because you raised the guidance. So, thank you so much.

Speaker #12: They need an operational infrastructure to run it at scale. With all the compliance, with all the sharing and security models, with all the permissioning, with all the compliance.

Speaker #1: And I think people were really excited about that, and maybe a little inappropriately skeptical that we would have just locked it all down and said, "No, it has to be in our app." And that's never been the case for Salesforce.

Speaker #12: So they will use continue to use that while getting value. And as Miguel said, what we want to do is it's a new way.

Speaker #1: We've always been, I think, year after year, Postman says that Salesforce is the most used set of APIs on the planet. And if you're building today, if you're...

Speaker #12: We want to capture value. Wherever the work is happening and that's the conversation we are having with our customers. And as we talk to our customers, ISV partners, and all, we'll figure out the right value.

Speaker #2: People don't know what that means on this call, so will you just explain it? You got it down into the inside baseball.

Speaker #1: Sure, sure. So what that means is, when you're a builder—when you're out there building something, and this is especially true today because there's now an ocean of builders that have been created as a result of this coding agent boom—when you go to build something for your business, you at some point are likely going to want to connect to Salesforce.

Speaker #12: So I think it's a new monetization area for us.

Speaker #8: Absolutely. All right. Well, let's get down to one more level of detail. This was the quarter where, as we used the word headless for the first time, we used it in a we talked about it at Trailhead DX.

Speaker #8: I used it in a tweet. The tweet went really viral. It was a surprise to me, I'll be honest, because of course, we had always been first on APIs and XML.

Speaker #1: That is what we see, and it doesn't matter what platform you're doing it on. You can be building something on a competitive platform to Salesforce, or on Google, or AWS, or one of our partners. But at some point, you're going to want to connect into Salesforce, and that's why those APIs have always been hugely, hugely used.

Speaker #8: In SOAP, in REST, and now in CLI and MCP. But the system was always built to be API first. It has always done massive amounts of transactions.

Speaker #1: But when you are building with an agent, you need a slightly different type of API. That's what we call MCP. And so, by really putting those MCP servers out and saying, "Yes, this is how we want people to build," I think it was a big surprise and a big move in the right direction.

Speaker #8: And complex transactions. We've always reported those API figures. And now we even have a new API, which is our whole user interface basically spinning out of the platform as an API with so we have that incredible capability.

Speaker #1: And it also creates, I think, a real monetizable opportunity for us.

Speaker #2: So, if I could add one thing, because the fact that we announced Headless at TDX, it made people think that this was just for builders.

Speaker #2: And that now they can take our CRM apart—and which they can now also, by the way. But I think the big breakthrough was not with the builder workers, but with the knowledge workers.

Speaker #8: has always been API first. All the applications have been API first. But when we announced headless, everybody's like, oh, they've lobbed the top off of it or they've cut the applications off.

Speaker #2: Let me give you two concrete examples. I met 100 customers, basically face to face, one-on-one since the beginning of the year. And let me give you two examples.

Speaker #8: They kind of got confused, in my opinion. They don't understand that all of our apps are rendered dynamically with metadata that they're driven it's a metadata-driven platform.

Speaker #2: Adecco—a great customer across the board. They use pretty much every cloud. They went into Data Cloud and Agentforce last year. They did a big commitment in Q1, at the beginning of Q1.

Speaker #8: So Patrick, you're the marketing officer. Where did that confusion come from for people? Why do they think headless means that there's no more application or Salesforce app?

Speaker #2: They are basically Design and ILA, wall to wall. They have amazing recruiter agents going there. Millions of transactions. They're moving into voice. When we announced Headless, they called us and they were like, "Wait a minute, let me try to understand what you're doing." So now, because they are also using other platforms to develop other agents.

Speaker #13: Well, probably from the name headless, which does seem to which does seem to imply that. I can understand. But that term obviously, if you're in the technology world, that comes from a it's been a term that's been used in technology for quite some time.

Speaker #13: To imply that the UI is not directly linked to the underlying capabilities or services that are underneath it. In this case, in this case, APIs.

Speaker #2: So they have agents with some of the AI labs that they're also trying to access our data. Are you saying that now these agents that we are building outside Agentforce can also leverage Salesforce?

Speaker #13: And yes, Salesforce has always been open. I think what people got so excited about here is this idea that Salesforce was endorsing this way of working.

Speaker #13: We were basically saying, hey, we want you to take the value of Salesforce and the value that you get from our apps from sales, from service, from commerce, and marketing, and we want you to be able to work however you want to work, whether that's in Slack or whether that's in Claude or whether that's directly in the app.

Speaker #2: And we said, "Exactly. We did it for that." So now there's going to be a lot of new agents that are going to be accessing our platform.

Speaker #2: That's example number one. Example number two is Anthropic. Anthropic is one of our biggest users of CRM, of Sales Cloud, and obviously Slack.

Speaker #2: Their usage through Q1 has exploded fivefold because now they are using Sales Cloud from a headless perspective. And they are approaching it from cowork, from other applications.

Speaker #13: That's what this capability really enables. And I think people were really excited about that. And maybe a little inappropriately skeptical that we would have just locked it all down and said, no, it has to be in our app.

Speaker #13: And that's never been the case for Salesforce. We've always been I think year after year postman says that Salesforce is the most used set of APIs on the planet.

Speaker #2: From Slack, they're hitting Sales Cloud. So Sales Cloud has become more prominent and more strategic for them than ever because of headless. These are two examples—extreme examples.

Speaker #2: But this is every single conversation that I have with a customer. Their smiles are big because of Headless.

Speaker #13: And if you're building today, if you're.

Speaker #8: People don't know what that means on this call. So will you just explain it? You got it down into the inside baseball.

Speaker #1: Oh, thank you, Gabriella. I hope you felt the energy on that question. Operator, we'll go to the next question, please.

Speaker #13: Sure. Sure. So what that means is when you're a builder, when you're out there building something, and this is especially true today because there's now an ocean of builders that have been created as a result of this coding agent boom.

Speaker #4: Your next question will come from Brad Zelnick with Deutsche Bank.

Speaker #5: Great, thanks so much for having me, and nice to see everybody. Marc, the AWU and token consumption metrics are some of the biggest and fastest growing in software, and seem to validate that customers are using and deriving value from the product.

Speaker #13: When you go to build something for your business, you are at some point are likely going to want to connect to Salesforce. That is what we see.

Speaker #13: And it doesn't matter what platform you're doing it on. You can be building something on a competitive platform to Salesforce or on Google or AWS or one of our partners.

Speaker #5: Can you help us translate the usage metrics to revenue? Like, the Agentforce ARR is impressive, but the usage suggests much faster adoption. And just as a related follow-up, the gross margins show no degradation despite surging token demand.

Speaker #13: But at some point, you're going to want to connect into Salesforce and that's why those APIs have always been hugely, hugely used. But when you are building with an agent, you need a slightly different type of API.

Speaker #13: That's what we call MCP. And so by really putting those MCP servers out and saying, yes, this is how we want people to build, I think it was a big surprise and a big move in the right direction.

Speaker #5: So, can you just help us understand how you're able to do that? Thanks.

Speaker #1: Yeah. Well, there's a lot of different points there. I'm not sure exactly where I want to go, but, I mean, you know, talking about the financials of the company—when we talk about the agentic enterprise—first and foremost, obviously, Salesforce is a large-scale company in software, with the largest, 83,000 employees.

Speaker #13: And it also creates, I think, a real monetizable opportunity for us.

Speaker #8: Exactly. If I could add one thing because the fact that we announced headless at TDX, it made people think that this was just for builders.

Speaker #8: And that now they can take our CRM apart. And which they can now also, by the way. But I think the big breakthrough was not with the builder workers, but with the knowledge workers.

Speaker #1: For the last couple of years, we have not been loading up a lot more engineers with Shrini. So Shrini's here at the table. He's got, what, about 15,000 engineers.

Speaker #8: It's more about how you work. Let me give you two concrete examples. I've met 100 customers basically face to face. One on one since the beginning of the year.

Speaker #1: And you've had the 15,000 engineers for about two years. It's been mostly flat, right? And I would say that the reason it's been mostly flat is because we have been using AI to create more efficiency for our engineers.

Speaker #8: And let me two examples. Adecco. Great customer across the board. They use pretty much every cloud. They went into data cloud and Agentforce last year.

Speaker #8: They did a big commitment in Q1, the beginning of Q1. They are basically the sign and ELA, wall to wall. They have amazing recruiter, agents going there.

Speaker #1: And especially this year, now with these new coding agents, we're seeing even more dramatic capabilities. So that's a key part of our margin story, that we're not hiring more engineers.

Speaker #8: Millions of transactions. They're moving into voice. When we announced headless, they called us and they are like, wait a minute, this is let me try to understand what you're doing.

Speaker #1: We're not hiring more GAs. We're, you know, we're mostly expanding only in one area. You can see headcount has grown, but it's mostly growing in Miguel's area in sales, because I think we all realize the one thing that we're doing here with you—selling and communicating—that agents are not exactly doing that.

Speaker #8: So now because they are also using other platforms to develop other agents. So they have agents with some of the AI labs that they're also trying to access our data.

Speaker #8: Are you saying that now these agents that we are building outside Agentforce can also leverage Salesforce? And we said, exactly. We did it for that.

Speaker #1: They can qualify, okay, they can provide service, but in sales, we still scale because there are so many different parts of the market that we have to get to.

Speaker #8: So now there's going to be a lot of new agents that are going to be accessing our platform. That's example number one. Example number two is Anthropic.

Speaker #1: So that will be a critical part of expanding our company, but at the same time, expanding our margins. I think the other part of that that's really key is, you're right.

Speaker #8: Anthropic is one of our biggest users of CRM. Of Sales Cloud. And obviously Slack. Their usage through Q1 has exploded fivefold because now they are using Sales Cloud from a headless perspective.

Speaker #1: You know, we're trying to really communicate that level of token usage. Maybe we're one of the first to really get out and talk about, "Hey, not only do we have agents."

Speaker #8: And they are approaching it from cowork, from other applications. From Slack, they're hitting Sales Cloud. So Sales Cloud has become more prominent and more strategic for them than ever because of headless.

Speaker #8: These are two examples, extreme examples. But this is every single conversation that I have with a customer. Their smiles. Are big. Because of headless.

Speaker #8: Oh, thank you, Gabriella. I hope you felt the energy on that question. Operator, we'll go to the next question, please.

Speaker #14: Your next question will come from Brad Zelnick with Deutsche Bank.

Speaker #15: Great. Thanks so much for having me. And nice to see everybody. Mark, the AWU and token consumption metrics are some of the biggest and fastest growing in software and seems to validate the customers are using and deriving value from the product.

Speaker #15: Can you help us translate the usage metrics to revenue? Like the Agentforce ARR is impressive, but the usage suggests much faster adoption. And just as a related follow-up, the gross margins show no degradation despite surging token demand.

Speaker #15: So can you just help us understand how you're able to do that? Thanks.

Speaker #16: Yeah. Well, there's a lot of different points there. I'm not sure exactly where I want to go. But I mean, you know, our talking about the financials of the company, when we talk about the agentic enterprise, first and foremost, obviously a Salesforce is a large scaled company in software, one of the largest, 83,000 employees.

Speaker #16: For the last couple of years, we have not been loading up a lot more engineers, with Shrini. So Shrini is here at the table.

Speaker #16: He's got what he's about 15,000 engineers. And you've had the 15,000 engineers for about two years. It's been mostly flat, right? And I would say that the reason it's been mostly flat is because we have been using AI to create more efficiency for our engineers.

Speaker #16: And especially this year, now with these new coding agents, we're seeing even more dramatic capabilities. So that's a key part of our margin story is that we're not hiring more engineers.

Speaker #16: We're not hiring more GA. We're, you know, we're mostly expanding only in one area. You can see headcount has grown, but it's mostly growing in Miguel's area, in sales.

Speaker #16: Because I think we all realize the one thing that we're doing here with you, selling, and communicating that agents are not exactly doing that.

Speaker #16: They can qualify, OK, they can provide service, but in sales, we still scale because there's so many different parts of the market that we have to get to.

Speaker #16: So that will be a critical part of expanding our company. But at the same time, expanding our margins. I think on the other part of that that's really key is you're right.

Speaker #16: You know, we're trying to really communicate that level of token usage. Maybe we're one of the first to really get out and talk about, hey, not only do we have agents, but we've delivered 28.6 trillion tokens.

Speaker #16: I listened to some of the other earnings calls, and I don't think that they're at that level of detail. We've even gone down into this 3.8 billion agentic work units where Patrick is really pioneered this idea to how to be able to communicate more effectively the level of depth that's really going on with our customers actually implementing this technology.

Speaker #16: And that, I think, is also a critical thing that we're only a couple of years into this agentic revolution, but we see all this adoption and usage in every other product that we've rolled out.

Speaker #16: You know, you've never seen the level of scale and growth of a new product like what we've seen with Agentforce. And you're going to see that, in my opinion, I don't know, but I'm going to give you a vision, I think as we get Agentforce coworker live for all of our customers and it's just the ability for the administrator to say now that it's available to these users, like that experience that we had with Andrew Russo, this idea that all of a sudden we're about to add a massive amount of new functionality and capability into all of our apps overnight, you're going to see these token numbers continue to expand and grow.

Miguel Milano: The acceleration that we committed. Listen, when you commit something 12 to 18 months in advance, we're good professionals, but we're not magicians.

Speaker #16: Are we using more tokens internally? We are for our own operations, like in engineering. Are we using them for our customers? We are. And then we're absorbing that into our margin structure.

Robin Washington: Yes.

Miguel Milano: There was a probability that it could not have happened, but we were very firm, and I'm very happy that we're executing as per plan. In fact, a little better than planned because you raised the guidance. Thank you so much.

Speaker #16: It's not that we're not spending a lot. With OpenAI, we are. We're using their platform. We're using Codex, their coding tool. We're using Anthropic.

Robin Washington: Good deal.

Marc Benioff: Very good. Okay.

Speaker #16: We're using their platform and their coding tool, Cowork. We're using both of these platforms. Both of these companies are our customers. We're very excited about how they're using it.

Robin Washington: The only other thing I'd bring up to your point, Brad, on margins, again, going back to our FY30-

Marc Benioff: It's such a good question, right?

Robin Washington: Right, it covers everything, right?

Marc Benioff: It's really getting down into the depth of it, right?

Robin Washington: Is that, as we march to FY30 and that Rule of 50, right? Our ability to leverage these tools to improve our productivity is a critical component of how we're going to get to Rule of 50. As Miguel said, grow the top line $63 billion plus with Informatica, but also improve margins and operating profitability. As I said earlier, customer zero is number one for us, and it's going to help us reach our framework as the lean agentic enterprise.

Speaker #16: We use their products as well. They use our products very aggressively, both of them. In Slack, in Sales Cloud, in Service Cloud, across the board.

Speaker #16: So that is really what's happening. Which part did I not directly address?

Speaker #17: I think you have it all. Brad, maybe to add to your monetization point, and you're right, AWUs is something that we use to measure how work gets done with our customers and also internally, as customers zero.

Speaker #17: But our top 10 AWU customers have spent more than $1.5x over this past year with us. So it is being monetized over time. You know, be it consumption, and just basically getting more value from our core.

Marc Benioff: Excellent. Okay, great. Let's move on to the next question.

Mike Spencer: Okay, with that, operator, we'll take our last question now, please.

Kirk Materne: Your last question will come from Kirk Materne with Evercore ISI. Well, thanks very much for squeezing me in. I wanted to follow up on, Miguel, you had made a comment on one of your customers using Sales Cloud through Slack, and I wanted to dive in on Slack a little bit, just as part of the broader headless strategy. Can you talk about Slack being potentially sort of a gateway for broader agentic adoption in your customer base, what you're seeing now, how that's sort of stacking up in your pipeline opportunities? It just seems like it's an unbelievable network effects product, and I was curious how that's having an impact, if at all right now, or if you expect it to, on sort of broader agentic bookings as we go into the back half of the year. Thanks.

Um, the only other thing I I bring up to your point Brad on margins again, going back to our getting down into the depth of it. Right? Is that you know as we marched FY 30 in that rule of 50, right? Our ability to leverage these tools to improve our productivity is a critical component of how we're going to get to rule. Of 50 is Miguel said, grow the Top Line 63 billion plus with Informatica but also improve margins and operating profitability. So as I said earlier, customer zero is number 1 for us and it's going to help us reach our framework, as well. In agentic Enterprise, excellent. Okay. Great, let's move on to the next question. Okay? With that operator, we'll take our last question now, please.

Your last question will come from Kirk Matern with Evercore Partners.

Speaker #16: And I think we should probably just directly address this head-on. Look, we're not going to give guidance on attrition and all these things. We never have.

Speaker #16: But Miguel, you're talking about how attrition is falling in the second quarter, and what's your vision around attrition and heads in accounts and agents and what's happening in these customers?

Speaker #15: I mean, our focus has been net new AOV. We did a lot of work, to be honest with you, to focus behind everyone in the organization from product, to back office, to front office, to professional services, everybody is aligned on one metric, which is net new AOV, which is the difference between the new bookings and then the leakage, the attrition.

Uh, well, thanks very much for squeezing me in. I want to follow up on Miguel. You made a comment on one of your customers using Sales Cloud through Slack, and I want to dive in on Slack a little bit, just as part of the broader headless strategy. Can you talk about Slack being potentially sort of a gateway for broader agentic adoption in your customer base?

Marc Benioff: That's such a good question. I think each of these folks should address it, but Miguel, why don't you start?

Speaker #15: And we managed to redirect, and we show at the investors' day how the curve was negative at some point. The negative growth.

Miguel Milano: First of all, from a top-line perspective, and we'll talk about how strategic Slack has become. Slack has become one of the favorite platforms and surfaces for, in this case, very specific, both the builders and the knowledge workers, have found in Slack the way to. It's a multiplayer collaborative platform to access your applications. It's your work operating system. It's incredible what has happened on Slack, how we are leveraging, by the way, great partnership with one of the AI labs, with Anthropic, to launch Slackbot. Slackbot is our personal assistant. It has increased the productivity of the whole company around 3%, more or less. Now I do everything, I ask everything to an agent. That agent has access to all my applications, all my approvals, all my sharing models, all my conversations, and the business is booming.

Speaker #16: What Q1 was a very strong net new AOV quarter for you as well. Right? So what does that tell us? Why is that transformation happening?

Speaker #15: The important thing is we are focusing on customer success, which has been always a focus, but our some of the incentives weren't aligned internally.

Speaker #15: They've been aligned now pretty much from the second half of the year. We saw net new AOV pays in AOV growth. We are very confident that in H1, we're going to see continued net new AOV growth at pays in AOV growth.

Speaker #15: Obviously, that's both levers. We are obviously increasing the new bookings. And we are minimizing the pain of attrition. In some cases, I can't exact this day, swap products to make sure that customers are happy using the products.

What you're seeing now. Uh, how that sort of stacking up in your pipeline opportunities. It just seems like it's a unbelievable Network effect product. And I was curious how that's having an impact. Uh, if at all right now or if you expect it to on sort of broader agentic booking. So as we go into the back half of the year, thanks that's such a good. That's such a good question. I think each of these folks should address it but Miguel why don't you start? So, first of all, from a top line perspective, and we'll talk about how a strategic slack has become slack has become 1 of the favorite platforms and surfaces for. In this case, very, very specific. Both the builders and the knowledge workers. Uh, found in slack, the way to it's a multiplayer collaborative platform to access your applications. To is your work operating system. It's incredible. What has happened on slack? How we are leveraging by the way, great partnership with 1 of the aabs with anthropic to launch, uh, you know, slackbot slackbot is our personal, our personal assistant, and it has increased

Speaker #15: So we are very confident on the net new AOV in H1, also being growing more than AOV, and the reacceleration that we committed. And listen, when you commit something 12 to 18 months in advance, I mean, we're good professionals, but we're not magicians.

Miguel Milano: By the way, the bookings are booming, but also the net new ARR of that business is very impressive. The key characteristic is, when we talk about the MCP server tools calls on Slack, most of them were done by the builders building applications that needed that rich context that Slack provides. Huge growth, AOV top-line growth, bookings growth, net new ARR, very little attrition.

Speaker #15: And we do I mean, there was a probability that it could not have happened, but we were very firm and it's I mean, I'm very happy that we're executing as per plan.

The productivity of the whole company around 3% more or less. So now I do everything. I ask everything to an agent that agent has access to all my applications, all my approvals, all my sharing models, all my conversations and the business is booming, by the way, the bookings are booming. But also the lender you'll be of that business is, is very impressive. And the, the key characteristic is, uh, you know, when we talk about the NCB server tools calls on slack, most of them were done by the

Speaker #15: In fact, a little better than plan because you raise the guidance. So thank you so much.

Speaker #17: Thank you. The only other thing I'd bring up to your point, Brad, on margins, again, going back to our FY30 into the depth of it, is that as we marched ed FY30 in that rule of 50, right, our ability to leverage these tools to improve our productivity is a critical component of how we're going to get to rule of 50.

Srini Tallapragada: Slack, I think, is the best manifestation. When we say agents and humans work together.

Marc Benioff: That's it.

Srini Tallapragada: You experience it in Slack. When you're in a channel and suddenly a lot of these, especially I see it now in my engineering channels, like half the time, somebody puts a question or a request on a Slack channel, and the agent is listening and answering it. Developers do a PR request in Slack, and then suddenly the agent is picking up and is trying to do it. They want status reports. I think Slack is where people can really understand the manifestation, and they're all asking questions as a human, and Slackbot is even a better way of articulating that in a packaged way. That's like what is driving in the advanced use cases because the developer community tends to try these tools. It's very embedded.

Speaker #17: As Miguel said, grow the top line, 63 billion plus with Informatica, but also improve margins and operating profitability. So as I said earlier, customer zero is number one for us, and it's going to help us reach our framework as we lean agentic enterprise.

Speaker #16: Excellent. OK, great. Let's move on to the next question. OK, with that, operator, we'll take our last question now, please.

Speaker #17: Your last question will come from Kirk Matern with Evercore Partners.

Speaker #18: Well, thanks very much for squeezing me in. I want to follow up on, Miguel, you had made a comment on one of your customers using Sales Cloud through Slack.

Builders building applications that needed that rich context, that the slack provides so huge. Growth aov, Topline growth, bookings growth, nuv, very little attrition. So also on the slack, I think is the best month when we say agents and humans. Work together, you experience it in slack, you know, when you're in a channel and suddenly in a lot of these special, I see it now in my engineering channels, like half the time. Somebody puts a question or a request on a slack Channel and the agent is listening and answering it developers. Do a PR requests in slack and then suddenly the agent is speaking up is trying to do it. They want status reports. I think slack is where people can really understand the manifestation and and they're all asking questions as a human and slack bot is even a better way of articulating that in a package way. So that's like why? What is driving and the advanced

Srini Tallapragada: They see this manifestation a lot more, and which is also the reason why some of our most advanced customers and labs and engineering organizations are using Slack MCP even more than we thought. I think that's a key interest, and I feel as it goes, at once, it looks like magic and that's why they say, Oh, this is how it always was meant to be.

Speaker #18: And I want to dive in on Slack a little bit, just as part of the broader headless strategy. Can you talk about Slack being potentially sort of a gateway for broader agentic adoption in your customer base, what you're seeing now, how that's sort of stacking up in your pipeline opportunities?

Speaker #18: It just seems like it's an unbelievable network effect product. And I was curious how that's having an impact if at all right now or if you expect it to.

Use cases, because the developer community tends to try these tools, it's very embedded. They see this manifestation a lot more, which is also the reason why some of our most advanced customers, labs, and engineering organizations are using Slack MCP even more than we thought. And I think that's the key interest, and I feel as it goes to the general.

Speaker #18: On sort of broader agentic bookings as we go into the back half of the year.

Speaker #16: That's such a good question. I think each of these folks should address it. But Miguel, why don't you start?

Speaker #18: So first of all, from a top line perspective, and we'll talk about how a strategic Slack has become, Slack has become one of the favorite platforms and surfaces for, in this case, very specific, both the builders and the knowledge workers.

Marc Benioff: Yeah. Patrick, we're going to give you the last word here.

Patrick Stokes: Great. Yeah. I think it's all about the experience that Slack delivers. When you get in and you use a product and it just works, that is a moment for you, and you're going to go back to that product. I think that's exactly what Slack is, and it's more sophisticated really, than it's ever been. We started as this collaboration tool, it's become so much more than that. It's not just a place where all of your can make calls out to other tools. You can have agents working right in there side by side, these coding projects and the incredible coding agents that have surfaced in the last two years. The thing about coding is like, that's not a single-player job, right?

It once, it looks like magic, and that's why they say this: "Oh, this is how I always meant to be." Yeah. Patrick, we're going to give you the last word here.

Great. Yeah, I mean, I think it's all about the experience that Slack delivers. I mean, when you get in and you use a product and it...

Speaker #18: Found in Slack the way to it's a multiplayer collaborative platform to access your applications, to ease your work operating system. It's incredible what has happened on Slack, how we are leveraging, by the way, great partnership with one of the A labs, with Anthropic, to launch Slackbot.

It's a moment for you, and you're going to go back to that product, and I think that's exactly what Slack is. And it's more sophisticated, really, than it's ever been. You know, we started as this collaboration tool, but it's become so much more than that. It's not just a place where all of your institutional...

Speaker #18: Slackbot is our personal assistant. It has increased the productivity of the whole company around 3%, more or less. So now I do everything. I ask everything to an agent.

You can make calls out to other tools, and you can have agents working right in there, side by side.

Speaker #18: That agent has access to all my applications, all my approvals, all my sharing models, all my conversations. And the business is booming, by the way.

Patrick Stokes: When you code, you're working with a team, and Slack is the only place where you can have that coding agent and the full team of all of your engineers and your developers all working towards that one-

Speaker #18: The bookings are booming, but also the net new AOV of that business is very impressive. And the kicker activistic is, you know, when we talk about the NCP server tools calls on Slack, most of them were done by the builders building applications that needed that rich context, that the Slack provides.

Srini Tallapragada: Even in deals of support channels, it's there.

Patrick Stokes: Absolutely.

Srini Tallapragada: With Slack CRM, this is all we've brought back. I think it's a natural place to work. I really see that's what is driving.

Marc Benioff: Well, I think number one is this, which is that when we bought this company, it was doing less than $1 billion in revenue. It was struggling. It was having problems. The management team was really not clear how they were competing against Microsoft. I think coupling with our distribution capability, now adding the value of our core applications, and I think this key point that it drove nearly half of our million-dollar wins this quarter, up 80% year-over-year. That means that Slack is really having its absolute moment. I think the second thing that's really important is here's these Slack AWUs that have grown 350% quarter-over-quarter.

Speaker #18: So huge growth, AOV top line growth, bookings growth, net new AOV, very little attrition. So also.

Speaker #17: Slack, I think, is the best man when we say agents and humans work together, you experience it in Slack. You know, when you're in a channel and suddenly a lot of these special I see it now in my engineering channels, like half the time, somebody puts a question or a request on a Slack channel, and the agent is listening and answering it, developers, do a PR request in Slack, and then suddenly the agent is picking up and trying to do it.

These coding projects and and the incredible coding agents that have surfaced in the last 2 years. But the thing about coding is like that's not a single player job, right? When you code, you're working with a team and slack is the only place where you can have that coding agent and the full team of all of your engineers and your developers all work deals of support channels there. Absolutely. And with slack CRM, this is all we brought back, so I think it's it's a natural place to work. So I I really see. That's what is going to take. Number 1 is this, you know, which is that when we bought this company, it was doing less than a billion revenue and it was struggling. It was having problems with the management. Team was really not clear how they were competing against Microsoft, but I think coupling with our distribution capability. Now, adding the value of our core applications and I think this key point that it drove nearly half of our million dollar wins this quarter, you know, up up 80%, you know, year to year. That means that slack is really having, you know, it's absolute moment and I think the second thing that's really important is, here's these slack, a

Marc Benioff: That is amazing. 350% quarter-over-quarter AWUs. In two years, there is going to be more agents using Slack than people. This is an incredible example of the future, and also how this product is more valuable, being used more, has more data, more capability, and therefore it is going to have more intelligence and more value back to all of these customers as well. All of these companies can create Slack communication between each other.

Speaker #17: They want status reports. So I think Slack is where people can really understand the manifestation and they're all asking questions as a human, and Slackbot is even a better way of articulating that in a packaged way.

Speaker #17: So that's like what is driving and the advanced use cases, because the developer community tends to try these tools. It's very embedded. They see this manifestation a lot more.

Miguel Milano: That's right.

Miguel Milano: as well. If you're a Slack customer, you can easily have a secure communication with another customer as well. Miguel, do you want to add?

Speaker #17: And which is also the reason why some of our most advanced customers and labs and engineering organizations are using Slack MCP even more than we thought.

Miguel Milano: Because that work graph, that will become one of the richest work context in the enterprise, is getting richer and richer. The community built 3 million custom apps on Slack in Q1. That's 8 times quarter-on-quarter. There is a huge boom. Out of those custom apps, there were 250,000 that were AI agents, that were built third-party AI agents. That grew more than double in quarter-on-quarter, grew eightfold year-on-year. Everybody is working on Slack.

Speaker #17: And I think that's a key interest. And I feel as it goes to the general population, in the knowledge worker, Slack will become even more prominent because people will say, this is the way to work.

Speaker #17: And we always said Slack is the operating system of work. And I think now people can really see it. And once they start using it once, it looks like magic, and that's why they say this, oh, this is how I always meant to be.

You use that have grown 350% quarter over quarter. That is amazing 350%. Quarter over quarter. Aew use in 2 years. There's going to be more agents using slack than people. I mean this is an incredible example of the future and also how this product is more valuable being used, more has more data more capability and therefore it's going to have more intelligence and more more value back to all of these customers as well. Plus you all of these companies can create slack communication between each other as well. You know, if you're a slack customer, you can easily have a secure communication, uh, with another customer as well. Miguel do, you want to add that? Because that work graph, that will become 1 of the richest uh uh work context in the Enterprise is getting richer and richer. So we build I mean the the community build 3 million custom apps on slack in q1. That's 8 times quarter on quarter. I mean there is

Speaker #16: Patrick, we're going to give you the last word here.

Speaker #18: Great. Yeah, I mean, I think it's all about the experience that Slack delivers. I mean, when you get in and you use a product and it just works, that is a moment for you.

Marc Benioff: Well, I think that it's safe to say, and I'm not giving guidance by through what I'm saying, Sales is a $10 billion cloud already. Service is a $10 billion cloud already. Data is already a $10 billion cloud. I think when we see the growth rate that's happening inside Slack, you saw the ACV was incredible in Q1. This is going to be fast track from something we bought with less than $1 billion, that I'm sure we'll be talking in short order about Slack being a $10 billion cloud as well. All right. With that, I'm going to turn it back over to you, Michael.

Speaker #18: And you're going to go back to that product. And I think that's exactly what Slack is. And it's more sophisticated, really, than it's ever been.

a huge boom out of those custom apps. That were 250,000 that were AI agents, that were built third party agents and that grew that, that more than double in quarter on quarter grew 8-fold uh year on year. So everybody is working on slack. Well I think that it's safe to say and I'm not giving guidance by through what I'm saying but sales is a 10 billion dollar Cloud already, service is a 10 billion dollar Cloud already data is already a 10 billion dollar Cloud I think when we

Speaker #18: We started as this collaboration tool, but it's become so much more than that. It's not just a place where all of your institutional knowledge is.

Speaker #18: It now can make calls out to other tools. You can have agents working right in there side by side with humans. You look at these coding projects, and the incredible coding agents that have surfaced in the last two years.

Mike Spencer: Yeah. Thank you, everyone, for joining us on the call. Just a quick reminder, we have our quarterly webinar on Friday. Very timely, given the questions today, we're going to talk about Slackbot and our headless strategy in a deeper way with our product leadership. Please join us for that on Friday. You can find the information on our website. With that, we'd like to thank everyone for joining us, and we'll be seeing everyone in the coming weeks.

Speaker #18: But the thing about coding is, like, that's not a single player job, right? When you code, you're working with a team. And Slack is the only place where you can have that coding agent and the full team of all of your engineers and your developers all working towards that.

Speaker #17: And I think the deals of support channels, it's there. And with Slack CRM, this is all we brought back. So I think it's a natural place to work.

We see the growth rate that's happening inside Slack. You saw the ACB was incredible in the first quarter. You know, this is going to be fast-tracked from something we bought for less than $1 billion, and I'm sure we'll be talking in short order about Slack being a $10 billion cloud as well. All right, with that, I'm going to turn it back over to you, Michael. Yeah, thank you. And thank you everyone for joining us on the call. Just a quick reminder: we have our quarterly webinar on Friday, and, very timely given the questions today, we're going to talk about Slackbot and our headless strategy in a deeper way with our product leadership. So, please join us for that on Friday. You can find the information on our website. And with that, we'd like to thank everyone for joining us, and we'll be seeing everyone in the coming weeks.

Operator: Thank you for joining. This concludes today's call, and you may now disconnect.

Thank you for joining. This concludes today's call, and you may now disconnect.

Speaker #17: So I really see that's what is driving the moment.

Speaker #18: I think number one is this, you know, which is that when we bought this company, it was doing less than a billion in revenue.

Speaker #18: And it was struggling. It was having problems. The management team was really not clear how they were competing against Microsoft. But I think coupling with our distribution capability now, adding the value of our core applications, and I think this key point that it drove nearly half of our million dollar wins this quarter.

Speaker #18: You know, up 80%, you know, year over year. That means that Slack is really having you know, it's absolute moment. And I think the second thing that's really important is, here's these Slack AWUs.

Speaker #18: That have grown 350% quarter over quarter. That is amazing. 350% quarter over quarter AWUs in two years, there's going to be more agents using Slack than people.

Speaker #18: I mean, this is an incredible example of the future. And also how this product is more valuable, being used more, has more data, more capability.

Speaker #18: And therefore, it's going to have more intelligence and more value back to all of these customers as well. Plus, you all of these companies can create Slack communication between each other.

Speaker #18: That's right.

Speaker #17: As well. You know, if you're a Slack customer, you can easily have a secure communication with another customer as well. Miguel, do you want to add?

Speaker #18: Yeah, because that work graph that will become one of the richest work contexts in the enterprise is getting richer and richer. So we build, I mean, the community built 3 million custom apps on Slack in Q1.

Speaker #18: That's eight times quarter on quarter. I mean, there is a huge boom out of those custom apps. There were 250,000 that were AI agents that were built third party AI agents.

Speaker #18: And that grew, that more than double in quarter on quarter, grew eightfold year on year. So everybody is working on Slack.

Speaker #16: Well, I think that it's safe to say, and I'm not giving guidance by what I'm saying, but sales is a $10 billion cloud already.

Speaker #16: Service is a $10 billion cloud already. Data is already a $10 billion cloud. I think when we see the growth rate that's happening inside Slack, you saw the ACV was incredible in the first quarter.

Speaker #16: You know, this is going to be fast track from something we bought with less than a billion dollars. That I'm sure we'll be talking in short order about Slack being a $10 billion cloud.

Speaker #16: As well. All right, with that, I'm going to turn it back over to you, Michael.

Speaker #18: Yeah, thank you. And thank you everyone for joining us in the call. Just a quick reminder, we have our quarterly webinar on Friday. And very timely, given the questions today, we're going to talk about Slackbot and our headless strategy in a deeper way with our product leadership.

Speaker #18: So please join us for that on Friday. You can find the information on our website. And with that, we'd like to thank everyone for joining us.

Speaker #18: And we'll be seeing everyone in the coming weeks.

Speaker #2: Clouds, our self-cloud, I’ve been using for 15 years. Now we have—we can talk to my—in using stocks is different.

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