CRM - Earnings call transcript Q2 2024

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Operator

Welcome to Salesforce Fiscal 2024 Second Quarter Results Conference Call. [Operator Instructions] I would like to hand over the conference to your speaker, Mike Spencer, Executive Vice President of Investor Relations. Sir, you may begin.

Michael Spencer

Good afternoon, and thanks for joining us today on our fiscal 2024 second quarter results conference call.

Our press release, SEC filings and a replay of today's call can be found on our website.

Officer. call President Marc and and President Chief the CEO; Chair Brian on and Weaver, Amy Chief Operating me today Benioff, is and Millham, Joining Financial Officer;

include As non-GAAP and a results can materials our guidance found and commentary and reminder, today press non-GAAP measures. between release. our our Reconciliations GAAP in earnings be will

these recent should which statements uncertainties to could results not XX-Q risks, our the subject financial assumptions XX-K, these of comments call over that could Except Should our be company and let is other Some factors Marc. change. with SEC SEC are incorrect, our or responsibility these forward-looking and hand today required materially results any affect that may forward-looking A do risks on any our to prove we could risks, report statements. And of by law, and that, description filings. assumptions of Forms our from contain in other assumptions, materialize update statements. most forward-looking actual to and as undertake uncertainties included filings these differ to including me

Marc Benioff

Thanks so here We're results and this on very really much, appreciate today. of these there everyone and thanks excited being about with out being for Mike, obviously getting all right. And All you. call.

calls, So listen, as has really Salesforce last earnings our we've over accelerated to of you shared growth. with couple transformation profitable the

what and margin clear numbers, huge excited, from I super today. line on that's the like is top our be think and couldn't this I especially looking beat more

areas of executing been year, key all our X As last you know, these we've over transformation. against

update been going short that and First, quarter the on today. about our talking to that call, since and restructuring long term. fourth the We've we're you for

our the share you level, and Brian profitability. to we're how Second, showing you third, at wait prioritizing new to been new these really can to we're customer taking inside as well I excellence so we're made to going whole by talk our platform platform many take about productivity, with our over and our on some has our is that that last we've of decade enhancements new and innovations success, And and core incredible to can't fundamental so right data we core amazing core. acquisitions to Einstein as extensions core performance core culture platform, rebuilt showing operational run focusing drive them also cloud how today. And reigniting the versions that the Dreamforce, of a

relationships of stronger our you. Our all fourth even is investors. That's priority with building

is You and the spent our and X you, us. quarter. of know in industry express important investors and making our with themselves. history through progress not entire And there, just we're happier basically or for probably to I second the We're team #X the you. And want of from team feedback of released market to Srini And I that received and of how making innovation were only and just with they're Mike leading this that AI The we're the T&P everything we've this the we the CRM, to but from the speak company. how that you driving transforming CRM, delivered all adding transformation. the Salesforce great to especially incredible maybe in really told with great We entire more doing last and is and incredible and impact have our in products be than both entire all in we're gratitude the last months for be time sincere fifth ourselves, AI and pioneering #X for and product team. I happier customers huge quarter, my the I of David we thank numbers with cycle, to for AI our the new that being velocity technology AI customers a couldn't our couldn't priority. now he's quarter, X performance showing the

trust software well, data, AI, think the just become in plus us it's largest revenue second propelled I CRM by the largest third company Japan, And the to became platform, Our world. we in enterprise company.

Tableau, vendor, our all everyone and cloud Salesforce why -- one our trusted CRM powered CRM Data to I all metadata-driven be industry hard said, team. and Einstein, as clouds Slack, commerce, more integrated to We're especially CRM. to largest based than and the by congratulations Japanese latest So these IDC we more on #X said, Salesforce show AI at customers of any And tracker. are service wait I share that, capabilities working Cloud, is are to the That's as now, industry-leading marketing software at our to I sales And Flow, by #X, into platform. providing the MuleSoft. Really, with can't other Dreamforce. market

second Salesforce we're hear quarter our And a offerings. cost our to also up see growth. Revenue management over great yours. In year-over-year. up is our XXX% margin $X.X Veterans also JPMorgan, many our platform That's basis the quarter obligation and to at about wins to drive to results, what future the adds quarter really, is of ended increase the when in had year-over-year comes such across our while profitability. we highest of can our or an will and It up in operating you're operating billion, currency. more while cash hear million, Brian. Operating incredible Affairs Bayer, more as cRPO, and year-over-year, constant Department from And and couldn't up to same customer performance to currency. QX FedEx, second from That's disciplined $XX.X we're own in well we of rose year-over-year the so in that's going quarter to this our drove performance strong. margin we've continue incredible. especially hope It's constant numbers. as year-over-year, be really growth Amy, investing a short points initiatives positioning for our flow during period see ended second for And transformation second the I to XX% of call about And or our X,XXX Our exceeded the acceleration it with That's these we remaining margin as look, happier drive priority, And quarter, second row see, X,XXX was in XX% remaining up amazing. you're margins you to approach points billion. obligation, expectations. $XX.X XX% we've maintained pretty non-GAAP year-over-year. quarter, and time. very And $XXX the as continuing exceeded We've Maersk, our XX.X%. the Current was in XX% at billion. entire

ago. second buyback Now we we year program since a returned, started repurchases the through and have this quarter, share the amazing, in is billion $X

or we our non-GAAP our to back in $XX.X we year, billion $XX.X about So we've margin, growth about operating bought billion an non-GAAP lot but XX%, And think yes, last goal. guidance expected And performance an basis 'XX 'XX fiscal have raised target that's -- eclipse first over seen year you've billion that is I margin kind going know this fiscal half and XX I deliver XX% quarter raising fiscal more It's we in are XX% really we're we $X to to our our we're realize officially 'XX. the of XX%, is accelerating the happy improvement talk to what you of there. Based months, more do as saying now that margin quarter, that 'XX to to Amy these that. incredible raising on stock guidance projected points we year-over-year. Last again, for fiscal Well, said year XX% of operating all going are that year-over-year. the revenue saw we numbers the and awesome. of amazing, to to year. a XXX we and I'm of share,

So this It to And been a certainly they of XX-plus this to more next miraculous, year, achievement going cases, the now and been new got the do only sales, do them organization. many, down want who had It's help many continue just are how done it of They of lot especially have at has to those, year. in back. amazing lot They're of is I of Chief really the of was struggle. an out They taken running. has welcoming just our going To of I'm watch are a our awesome. to In Proven ground and results and level have were not Revenue next to incredible companies we're hitting an it really and want welcome back It's incredible. long our our to we're Officer, Kendall Milano, another capability we away start But who while people and to what so Kelman, their this come impact. and recently do want but agility. they employees incredible Business Salesforce not a recruited especially and we immediate just know employees. Boomerang what my a able products. technology start because Marketing margin percent with for from Ariel many they to the some the or I Chief arms, team. execute who positions got a whole growth lot things. Officer, one course, been employees Well, us to were leaders employees and nothing including us. executive leadership. Well, us excited has all Collins, -- the And difficult. it Miguel thought year. open But course, and incredible of Salesforce. XX% welcome of back have desire incredible. the it's just work. company, to were for had this been people but felt or out thank to for own culture. and Celonis Officer, coming of of winners, understand of I'm Staff come many of teams back returned Oracle, has these our Salesforce, off or has doing delivery been they're who see, was, the of and growth It's technology and our it They at boomerang help And the to with I a whatever. who's have incredible so quarter, It's lot love reason folks I want to them went left only left are them. to can't to Salesforce of this to in door employees our list, to is them my and of Chief thank say to about that that all the because just been back. And we've place, across most is really revenue Chief long to and line come engineering, And you but even of achieve back the incredible make Salesforce And

of got all to back us. And for sound siren them there the to so come I've out and join

necessary did Now as I be funny go I of to to faces at to leadership tell right But won't with you at not thrilled part him year. I'm excited He's Sabastian met that through Wachtell, the through of as have I'll the It's executive to work meeting earlier of happened we one this us. here He more The we team. things lot of amazing welcomed team, Legal and be Sabastian couldn't now. right happier. to you this the of during Niles greatest the Salesforce me, lot a Salesforce Chief couldn't and be Sabastian the leadership I know, on past. Officer. And as happier making my have have go this is with him a We and now sitting period Sabastian was details. table wouldn't past month, that our now

So welcome Sabastian.

Sabastian Niles

Thank you.

Marc Benioff

of also a investment tech We've new Many tell let Okay. new is of rounds sparking of the Thank we are you. coming seen Those many me said, dawn I've over revolution. involved been you data, at innovation And massive trust, tech AI earliest cycle as years. buying CRM, start-ups. a that. an that It's have comments. you, the cycle of the it's were AI, top in cycle. his the opening AI

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Brian Millham

Thanks, comment. Marc, the appreciate particularly it. I really for sandbagging

focus... Our

Marc Benioff

It wasn't was It Einstein. me.

Brian Millham

Sorry. Yes.

Marc Benioff

it what just So is is, know, it Brian.

Brian Millham

Got it.

operational... focus on Our

Marc Benioff

coming you, revolution AI the at baby. That's

So get ready.

Brian Millham

Okay.

strong operational another quarter. excellence, and growth focus drove Our initiatives performance on high

disciplined plus trusted ever it with those customer bottom I and to the faster drive our CRM they customers to the approach efficiencies, Every the cost time AI to data and priorities, driving unleash answer top business plus power management CRM easier productivity, at see faster as AI see on our innovating AI than of complexity line and continued to -- from as making removing business We quarter clear made the and scale. are all We're plus improvements. answer CRM AI it the to our and greater met laser-focused safely growth. We and platform. in value quick they generative with for trust we're

Despite product Customer work environment, we also X than from customer more Data exceeded transformational is success. the Amid our of XX% continued most of Cloud outcomes of and expectations average mission-critical proven compression on customers. And the our ongoing service, supercharging for our heard rely growth. in portfolio That's Salesforce reflection professional complete why marketing top commerce. XXX than deals the bottom is servicing measured We This line XXX the strategy and a clouds. Fortune portfolio, focus QX. affecting on customer quarter, in delivering more with in services Marc, that, and data buying larger flow go-to-market have sales, of real-time you've of our the product our around

the Our executed quarter. high-performance drive of the continues well to culture and how results, I'm in proud team

management, Starter add-on QX, reduced selected Flow, And marketing our fulfillment. they've products much saw saw X having million Electric Customer business deepening support success. using X And of and in been CRM called our done as of consistent with customer time to sales interactions it self-service international who Amy, has close the self-service offering. In Our business on XXX In you'll included growth we and faster realizing initiatives Salesforce running our efficiency has platform. Schneider decade, over engagement integrated customer with quarter, X experience. hear the X customers industries and from like they're to driving Salesforce and customers. our benefit our QX, a automated small bringing quarter, digital multi-cloud efficiency. we service generation, growth. business, help XX With further by for sales, Salesforce relationships offering marketing engagement, across core customers drive from introduced our core continue data, technology in services, Einstein, Cloud, their wins smaller we value, achieve in integrated top order businesses Service we XX%. the clouds. Through new to XX%. service, on and annually, Marketing tremendous and value refined a customers demand the consolidating service over times Schneider performance complexity, reduce products, for into In their are we're Schneider platforms AI, our X to product enhancing grow handling quarter are and demand or to more And AI-powered from personalize Cloud

SiriusXM is fastest-growing including was Data deals top momentum. marketing we FedEx companies great said, at strong it on Salesforce, Marc In and X As a wins and Einstein. experience of quarter, and automation significant Data the made in unlock innovations from Cloud our power has and of ever, Salesforce one FedEx by of Data every long service, and the AI, our application organic sales, is our in lets with XX saw multiple and Cloud driving in Cloud. to analytics. customers their data This KPMG. like supercharge quarter, investment adding relied clouds the customer

turned Cloud PenFed driving per credit customer how growth great MuleSoft, is unions more every seeing is and is trust Services and momentum next also plus Salesforce our integrated the U.S., Now credit part our at with drive Cloud generative engagement deliver Cloud, plus the They're service customers. of a customer Experience AI. using on, of month. CRM unions growth XX,XXX example one AI deeply personalized strong largest already Financial targeted PenFed X rate chatbots Data and and of of a for to data Einstein plus Einstein-powered in sessions experiences. We're on combined. the customer handling is growing

in fact, generative its every to for included their from MuleSoft $X deals than of out all the million growth. chatbots, we half In increase agents. In X our roll In Data greater with resolves activity continuing first of sources and from become PenFed insights, million in our of growth data assistant AI bring ROI. and their of customer a XX% all great In data Einstein with had QX, increase wins with Einstein-powered the unify to also today, use one contact their chatbot incredible in members resulting single nearly past Tableau, on Cloud MuleSoft, expanded the for XXX% efficiency, fuel quarter, with cases year service PenFed and to QX, together to now has Slack launched increase be XX Tableau products, X nearly to growth tailwind revenue a MuleSoft. And customers as in year-over-year. half automation nearly which mission-critical XX% Slack, and seen workflows our deals. excellent including now usage weekly, included has million of was We've our them top which in in

And grew to continue ARR growth above verticals clouds lever XX%. us. consecutive industry industry quarter, be Our our for third for at X of the a

Hargreaves software growth. strong -- being Department Education Lansdown EMEA, wins Marc the And saw with reiterate the said in we Japan largest country, second business internationally in LatAm. Victoria in in I'm just incredible growth to We saw earlier Carrefour of like Banco also APAC, in excited now about

of with As innovation we CRM, leading way we half of #X the the are an second as with AI year, all-time head -- a at into the pace the high. the path sorry,

on Amy, hope focus there. see and revenue Our I incredible power success our and be over you. our Dreamforce of of partners customer you and own at to profitability. on accelerating will Salesforce all drives Trailblazers, full display The month. success, community to next experts

Amy Weaver

Thank you, Brian.

of continue quarter we now bottom key line top to areas and that make in another show X, results QX our great of progress transformation, expansion. X, delivering Our

and results, are our AI the we driving in and well see can against CRM. we're positioned delivering the with our transformation, growth you profitable #X value, future, shareholder As for

growth Our QX framework our execution against our drove results. profitable

with let's So start the top line commentary.

than growth driven in performance XX% strength more modest XX% same points clouds. second In offset platform. million last XX% continued number The was our X was multi-cloud improvement The States grew grew margin average their clouds year-over-year XX.X%, an and revenue continued QX, and reflects restructuring and perspective, $XX by of for were annually more in in revenue strong by model retail saw growth service by a currency. more evidenced mission-critical in some to and Canada, years, the greater our tailwind. very $XX geographic of revenue timing. I grew and X solid QX professional measured. XX% continues customers our energy of and quarter, revenue internationally, consumer operating or second the saw And and attrition or investment nature a new XX% services. the billion, XX%. am in in business partially goods strategy currency, constrained. From by X%. constant highlighted the up India, durability has at approximately million-plus rose our expansion while automotive MuleSoft tripled, The a invest row. EMEA resilience, This non-GAAP or XXX number France tech the momentum, was than United ended business high has weakness the constant FX currency. the manufacturing, perspective, doubled. From continued and from the $X.X the more our the and while in and For sales We basis savings margin quarter X,XXX proud be industry was and quarter by unified Americas constant to of primarily is average of This customers who nearly actions, driven our up APAC progress. and

tied QX free margin us Our XXX% was year-over-year. our has million, cash quarters up exceed non-GAAP approach flow XX% cash target allowed early. operating stronger to expected outflows driven The than flow was disciplined cash in cash and cost to year-over-year. to margin just we $XXX X management million, QX up lower $XXX benefits upside QX discussed. flow collections XXX% by was the

obligation, represents Current due of performance MuleSoft. ended remaining revenue obligation, year-over-year year-over-year. ahead was momentum up QX and remaining all billion, the or ended under expectations, constant to future to $XX.X RPO, in in contract, at XX% billion, This notably cRPO, $XX.X currency. turning which performance up Now at XX% XX%

services. growth last include quarter, did X a from out cRPO professional point called headwind we As

initiated return returned shares than since million billion, deliver continue finally, just of bringing August. share And total last was form commitment. more our to than we In $X.X XX the capital to representing on program return $X billion the in QX, we the more repurchases,

guidance, to briefly to environment. current I turning Before macro wanted the touch on

additional businesses. guidance. customer the elongated our heard you and we incorporated macro factors layers deal support from sales seeing in environment in are These still measured impact Brian, to continues our decision-making. are approval As subscription compression cycles, and and deal professional And services

by to guidance representing raising and both On in year $XX.X to year-over-year our The in growth revenue, strength and 'XX. we billion in support increase is $XX.X fiscal are subscription constant with XX% currency. our start revenue, billion, MuleSoft. driven Let's nominal particularly

accelerating transformation We our are profitable growth. to

operating pleased raise basis representing are to XX%, non-GAAP XXX 'XX, year margin improvement year-over-year. guidance fiscal to For we a point

new a we era, As have in innovation invest that decade. cycle a will Marc new into as we're the last to we continue AI highlighted, over

by result, a the AI-focused expect nonlinear margins year, this investment of As timing, back in driven specifically quarterly in we half R&D.

this to improve remain a on focused also above percent to and slightly revenue. stock-based expected as year compensation of We X%

is $X.XX $X.XX these now 'XX the estimated for GAAP charges updates, to diluted of of to EPS we year including expect of $X.XX. EPS expected restructuring be $X.XX. Non-GAAP result now $X.XX, fiscal a to diluted As

to operating We are raising from our a This flow fiscal year restructuring. cash XX-point to 'XX guidance XX%. continues growth include XX% to headwind XX to approximately

expect an fiscal our to net in As taxes remaining year losses. 'XX see we reminder, down cash in draw a our as increase operating we

of carryforward. for free our XX% fiscal XX% in the for down approximately tax cash year credit greater to we expected slightly We results headwind below year next the fiscal of flow cash expect tax be This year. fiscal an draw revenue. even X.X% as to CapEx remaining is growth

slightly guidance in QX. constant for XX% revenue, $X.X growth On to for XX% billion, nominal to expected cRPO above we currency. be $X.XX expect above in XX% approximately or XX% slightly billion of QX in constant to and currency. year-over-year Now growth is

growth. of to expect point services professional cRPO approximately X to We continue headwinds

we As the to year. July began QX we full that the of in environment is quarter a last reminder, first see lapped measured buying first

cumulative we begin continue measured effect will sales performance. X impacted the of normalize, While to expect growth cRPO the be bookings materially by of quarters to previous to

in shareholder continue closing, want EPS offset QX, For we And focus $X.XX. allocation, support. fiscal I And return 'XX. In as dilution we of year to $X.XX compensation share our EPS on fully and continued our $X.XX. $X.XX to to capital thank GAAP through repurchases non-GAAP expect we for of to to their disciplined shareholders expect our stock-based

out attend maintained team you're our able delivering. we our while virtually, strategic in our AI the capabilities. And notably hope profitable to radically cost to latest person we growth. We've new make innovation laid transformation our finally, approach continuing is to quarters ago, data As to to I hear or investments, have the for and you Dreamforce, on disciplined incredible X management AI whether in accelerated

it's said, the event be to Marc AI year. going As the of

the Now open questions. Mike, for up call let's

Michael Spencer

our to go of Q&A on move we question. now. to please. we'll Emma, portion to Amy. respect call, Out of call others ask everyone ask the Emma, for Thanks, one only

Operator

from comes question the line with of Goldman first Your Rangan Instructions] Kash [Operator Sachs.

Kasthuri Rangan

the The economy. job an not to overused term landing, team has done a spectacular use a to doing with soft respect

cost controls, that's So operating et discipline, cetera.

out So there's there but and maximized for generative sort really seemingly to that impressively. you is to new We've Marc. A I you -- Salesforce hope are there environment customer we've seems customer got days question you of room landing. AI share product therefore, Do its spending Salesforce soft Francisco, wallet does sales congratulations gain there's of growth, Or in we AI. on San the Is enough that. to enough is is And think The excitement think continues the stay market, excitement. a in get the better And tremendous product capabilities. do be got to share? Dreamforce The all days -- back this can enough ahead? has have very, hyper generative with share? stabilizing. play very growth, seen wallet story there margin more not Because economy

nice we economic can faster out, growing having So if longer when a you no a a still are at with all constraint. shot it margins conditions Congratulations. while job even net still do

Marc Benioff

really excited, new thanks I with think think Kash, going it's start when I going be excited and super And forward We're these see to products. we Dreamforce. talk much, when you to to AI you're so looking at you AI. seeing about growth, and we're

that AI about a revolution. ignite think really I is to buying

in some our our of OpenAI. base we've with well. that think to already as even see started And customers' I companies see customers certainly and that we like new these

And certainly not and these adopt peers follow. our also understand you've I called think just next That's I buying especially kind be a of majority that able abate, the technologies but we've true, to need begin also a times. to of to know last think AI seen the at to grow that of environment. I that as Salesforce, think to And for measured of vast invest new customers in been I level and definitely productivity. quarters also number this several you they that out expect achieve you

exceeded geographies in this quarters all success especially last call of product and the especially our Now would technologies MuleSoft well. products, the a expectations, that has seen over number and is out of that several that to including our I said, several our of amazing incredible we've as also core far and a because growth our like

customers areas are that not it is this new So many grow of that's everywhere, by these a intelligence. Brian, this they that something your is driven some kind artificial we're with next customers. think one occurred, sure IT-buying see I in to Salesforce I to Dreamforce technologies. products, there is example of this level, permeated as just start these our really as perspective? see new us, areas. And to see opportunity I'm isolated become to going to to catalyst think this that to for get what's Cloud investments budgets can their Data with of quite but hangover happen kind we And reignite that post-pandemic of going new kind is

Brian Millham

for thanks Kash, question. Yes, the

to us, room a Data there to with to us in and drive us big they're new focus see success outlined there's for our around and like Obviously, in we certainly continue and calls bit. see to expand our multi-cloud a customers, to to go growth run economy using, for clouds strategy, and more and the more efforts we'd a number industries. Cloud, opportunity then of for one customers as our there's plenty we think as a opportunity of finally, previous our markets. appropriate. technology turn a growth three-pronged, we've think big going opportunity investments international to And acceleration I the We're make customers it's love the value AI expanding continues well. International that huge back for and on

clouds greater industry grew remarkable having with It's industry products. the impact quarter. in XX% say our the our of me heard than You we're X

will well in the investments to So business. industries as of deeper continue growth propel this

Marc Benioff

also about Kelman that And think the the to didn't here Ariel be talk incredible number with are I on and about sitting I who's at table remiss would a of call talk to appearing. new technologies Dreamforce us if I

So in that us or for we're what to Ariel, of to growth can an Salesforce are some what going little a of -- these level give insight you you catalysts bit next see occur. to amazing of going

Ariel Kelman

Yes, Hopefully, Dreamforce we're of very excited us. about next week's can conference. all join you

of year. the said, it's the biggest AI to As going Marc event be

products. We're have both in of we've technology a for salespeople, what business most have companies AI all help to We the advantage AI how built to XXX the lineup across of understand them broader for customer use people of for to advance service range their Customer flow people directly community with of product inspire companies technical the immediately. those our can in and it speakers going so do marketing them and some can people, capabilities take of they on the teach technical work they tremendous to really with speakers, of can they our and the sessions really

Marc Benioff

a long back now of been? month? couple Ariel, you've now, it has what it for been, How months X been has

Ariel Kelman

It has X June, months. it's beginning of been about the since

Marc Benioff

months. X

your So tell us being surprise what's Salesforce? biggest back been at

Ariel Kelman

technology of energizing all that ago the other very, refreshing as as is, in years been XX it is standards very some the that been really when we mission on here is was ways, surprise build and I that high this here some from having just the the energy about companies. passion we're people biggest inspiring the My and for -- has was in

Marc Benioff

were then back to you have to lose Amazon Oracle, here. we to but Well, you we're happy and to sorry

back. welcome So

Okay, Michael.

Michael Spencer

next question Kash. we'll the Thanks, Emma, please. take

Operator

Your comes Weiss next question with from Morgan of Stanley. Keith the line

Keith Weiss

side the on basis. on outperformed congratulations of around a of Kash's And question really go-forward kind you my echo equation, particularly a on guys I expectations. quarter, solid is margin where the margins

talked generative stated. But You this of plan, plan, you a quarters opportunity about with Marc, lot opportunity guys achieved big of targets there's transformational also ahead well as a X you ahead. And ahead AI. ahead your

AI basis this that opportunities goals. versus So be margin potentially go-forward the investing opportunity gains how year the into kind thinking balance back and into we of X you year about half of generative further next guys balance between for and on should as a these

Marc Benioff

there able just the continue this fundamental see is question many data. Well, do. directly really that, opportunity, company how as to what ahead. is to that you like really going to be incredible really think be but much It's speaking we're think to to investors profitable to really ahead, incredible the unleash to commitments have and also said growth. I unbelievable you're is, going to of address I opportunities, made exactly really I And that are going is that opportunities would deliver that what the which are opportunity to generative including growth it, we against other to we our AI some

We incredible way, long-term unusual as that and changes are that emerging level, public And growth. We We new that to we of course, the the see kinds we're still profitable were at issues. you short-term of you last starting see we serious. of curtailed It things. the And well very to company a committed now told I this think out company, that we with can by time, same companies doing that. At things. opportunity we things, that's the Dreamforce, the as, our wasn't fundamental number dislocation. industry, made to structurally in Investor a did joke. all Day are do

a our Number going thirsty organically Salesforce we're sure lot than you. Nothing with is, the do So we CRM, make to be last important that our is to that we done commitment trust two X But those that investors. are in #X the one number have more AI the things. have months. to to of watching all is and very is we

all We're things could out everything, do looking to We're with course, have trust there going with but is of at we help we you. us the trump at those inorganic Of as to things. that ever nothing there's that well. looking

Amy Weaver

Keith, I for would just restructuring, it never add, was yes, bottom when just we the the did line.

so future, in year. resources around of we not our invest that quarter, we in I AI, around believe is everything underscore for data around Marc the approach also our as about the progression to annually drive our a we'd terms we areas going opportunities, slightly does these spending into highest lean changes core. And and as imply a to but have this to as in see are disciplined company. said guidance this in a believe been were result, our we to want you the We to we've XX% that And time, the growth XX% the especially said commitments. very made will And last that forward, floor, look nonlinear I increase really ceiling. And --

Operator

the comes Your Kirk next Materne with of Evercore. line from question

S. Kirk Materne

you on pricing that the of the about Amy, lot actions of a just how of you quarter? in all year? on guess, the I've summer. that -- questions for half that back over impact And announced impact are I had earlier terms the How this the then the had guidance of thinking -- if any that this

Amy Weaver

the Great. question. Thanks for

the opportunities for significant taken a this will -- as as have our uplift guidance account influence on new for around So has on year, from AI. I this or our that neither well I say into any guidance pricing changes year.

think add a to like base, that? opportunities pricing take customer you on anything our while roll those we particularly that I renewal. Brian, really to else to would to as through look

Brian Millham

the price X customer see base to to really over X years. the going our We're to that. next hit increase exactly No, of the impact X

this material change So no big in year. fiscal

Operator

Keirstead of comes Karl with question UBS. the from next Your line

Karl Keirstead

the it count the Has growing there's an you've Maybe it talked from for level? bottomed? about, your you like And you is here back or start like employees, you welcoming to to again, year head XX% you now sort stabilize or at at Marc, that this at near like feel XX% rightsized bottom? our signal, feel and do growth XX,XXX Marc count rate opportunity if a is now, a as Marc, feel of that and/or with down head Amy,

Marc Benioff

on products has our we acquisitions Cloud, to we've our such Dreamforce us. And all talking especially to continuing are invest products in and is products all extremely so day grow our innovation that especially and to single accelerate Brian and core, and the plan mentioned that number of commerce also also a because marketing core, our about work, we've great which a growth. into his I commanded we at are and work Also, and Data and we moving their our in I him work something to to question. Well, much in I team think teams every AI. of that's doing invest incredible and you growing it's commanded management It's to in think important show engineering headcount, are geographies accelerate our of

headcount, of headcount, are grow attrition, to our with also course, are normalized but it. also continuing of we we part facing that's So

is as as -- -- restructuring planning so that, those year. see we can count this bottom the a know things company exactly like this head hope move those and that we if continue and major us. what other We done any we're efforts in both get you'll if our earlier of it's adjust don't And but today not saw behind one call to or yet rebalanced, and forward. I

Operator

comes the Bank Your Brad America next from Securities. Sills with of line of question

Bradley Sills

on highlighted exciting summary, here question to automation, across summaries AI. the GPT, and you've auto With I another Service content stack. replies, sales The opportunities GPT, ask Sales assistance, wanted are here call so scheduling. just

core stack, across today of look the do with here the see Salesforce sales, the you you're commerce customers the early most where when from that marketing, seeing and product? the on Just you activity based release across opportunity the service,

Marc Benioff

now all in but at of has deliver me X the These you AI our Salesforce really out zones. And engineering second about a is about we've will transactions the That's their evolution predictive speed really that predictive. of That's you're zone week. are customer to the why customers. It's we the deliver amazing. we're transactions, and with and rapidly say, which major AI. thank which these for a of trillion organization, going been to to decade, incredible. generative technology released at ability zone quite that. major the and is ballgame this GPT Einstein intelligence artificial organization very it X and so We're see over take place in first moving last know what's way, we're broad And Well, organization just beginning the mostly generative excited products, our let our we're looking here, value into and product played on much been

incredible then we all We that important automation, be level and at going to have to of we eventually get as generation work the an will autonomous more intelligence, service, and a of another area customers ability you're move AGI our lot knowledge and can at that's deal opening insight generative service I whether that look ever not tremendous to summaries haven't generative open not able systems these works systems. that you're seen and and conversations. And like do customers and with I zone a see from insights important more means and employees, these and companies, be a amount we that zones, AI exactly mean, in that's in-product deflection of research And that of as as with they And I and X This how kind more #X. as summarization. more see productivity, the by in our going really than in going we're growth we're more are become overviews AI it's that how have expertise is in do variety capabilities, fourth and But your and productivity be we're AI or well. those an for to have is system. of use answers, zone zone account just when we we idea of to excited Dreamforce, our our into call summaries to we going #X right, in led of through think We're see this of summaries we're our unfold the not area. briefings. enhancements also capabilities CRM to and before. that with augmentation mobile agent-based like now yet to an Because and seen when case going teams dictating I will innovation growth things another up areas. And of help with innovation assistance and more to, one level the lot and you're We've customers a team. move any then mentioned. And auto-responding you we're said, to but wide replies product, have with will

have We ecosystem. an

and is to customers, Of but be these all plan we course, we to of also Every as and all them Slack our have able incredible technology these of our models that we we're segmentation, most investing did things. lot Slack AI given Data own met have to Cloud and in of our to kinds world AI that become in we how was our in those for can happening we've or marketing offer own a companies, A you kinds that or going customers see see And able And companies. automatic going as these assistance. And company. Slack. end cost to to be and generation opportunities digitization they'll see of recently London, for in all generators a that, to whether more company going in things. incredible. tour the has deliver you're contract survey you'll all showed it's with campaign lot that's happen it, of our well, being up

as their their Slack. trove do they I've with internally Because appeared company, incredible uses a us a and and I with Anthropic, kinds mentioned. Slack and take available news and Cloud to Slack aware day things along you'll them where capabilities in technology agents become Slack more that, able to is first do all treasure saw Slack and digest of new Slack. And for first as then that and for Slack we're All for make a Slack information newsletters they then intelligence, deliver first. be these to things mentioned, We up the just really just they also and get have artificial working, of wake lines. And of develop and -- see of example, all Cloud X for Anthropic, every

to Dreamforce is amazing, all tremendous, that be going Slack also interface to going new most how Salesforce, the end we of all AI right tremendous company we're going release inside very Slack. That's as incredible One a see the show Slack Elevate, easy-to-use core systems. system as Salesforce and for This the our Slack a an Sales of all core call Sales also of of core and for exciting services much very through deliver going Slack. our vision things these running deliver see to in our is much front important to think we're you're to Cloud but you We're capability I a which very promoting to is on our core going products.

really generation So Dreamforce of well. excited next as that all as at you I'm and capability, of is Data Cloud to that that as artificial intelligence to all show well of

Operator

of line question next with Deutsche comes Zelnick Bank. from Brad the Your

Brad Zelnick

My to context talk AI on Cloud the on the particular is choice, And of especially as down you. the we and level Data Marc, Great. positioned interest and drill well things because that wanted partners team why the question, congrats how the from building profitability. suggest to at for the and Amy whole is keeps in Salesforce building. And pipeline I keep and impacting hearing overachieving opportunity? moment you these the of just Can in about partner of scope projects is generative trust? this the

Marc Benioff

artificial Cloud with and customers have these they've things get these attrition source these got how future customers', this together help CRM is all of we is Salesforce, on a these to these they're as X said what things well, that about and to products now Commerce we more the to And think is that's and and is successful, become about as which transformation I the point got really going a also customers And what plus this data, you going Salesforce. see around as about we're to that things that think where on said CRM is data to AI. And fundamentally is have about getting as call of Marketing this And Cloud, really last to be as Cloud forward especially and to it's they moment of our and and see plus ignited together get we well, it's they call Brian, we've it for we've move book us. want and our trust. and artificial about we of these they Data Sales from you're our to X customers trust. do can was adding going is as you That's of plus Well, AI our version core this and clouds I think Well, Data of out into modern thing. is customers. Service all the Maybe AI, is We've X excited XXX% that let the X is opportunity really develop huge And tried what it. come using the right, a heart they're to platform. have Those with show transformation single cannot they've gone intelligence. with awesome us a clear certainly, get really intelligence a technology be and we incredible have products job because and heard Cloud, going who months. Obviously, truth. And an what they and they're through Cloud huge you. get revenue to Cloud. running can But through these are got like falls, things that stacked of all

recruit So Staff Kendall Chief I as and back excited Officer, was my Collins. very Chief as to of my Business

of why see So Kendall, the clouds what couple here on of happen Dreamforce some can going we're when these get should for everyone about of just into insight next XX? to little Cloud weeks Data vision you a September excited and gets give everyone us Francisco amazing over San and and to about what's the on

Kemble Collin

Commerce It's it's about exciting. week. see be for about the last with making GPT to What back. Yes, AI been at be just months to seeing that GPT, right generative. not the live the It's you and company the said really right compelling Dreamforce and about great GPT, Marc, because went just I is people is a about think and so every X Marketing it's time better, cloud. right Sales cloud Salesforce, energy to of values And going one amazing

Marc Benioff

tell we're next as here new sitting our Wachtell. I'll future. what from to going for Chief to about just the Dreamforce excited give well. know Salesforce. of have you really first Niles, the us you're joined to this Officer, excited live Legal earnings I'm us you, happy and call you're And Sabastian Well, vision and is And welcome first your I for Sabastian, to be a

Sabastian Niles

or these the sustainability journeys, investors, certainly, most more how it's to next for values to and with these incorporating sophisticated and whether it's and how I they're for sort the of of enterprises whether and I the that not and looking design all is our Dreamforce beings, to putting to powering organizations excited culture. been as ahead, commitment several monitoring, underlie our the AI who are throughout least going and our trust years And that's think within look could about companies technology, individual deployment and that how we first commitment next choose see I be service they're of our values, values, even they stakeholders. human at whether powering technology in life it's success, equality, and next are ahead. XX enterprises, all are deploying cycle, infused I technology, what partner by several say evolves. And the will trust truly I'd trust, what development, they're customer customer ahead, And I've innovation, beyond, excited think months, our powering are years, our

Marc Benioff

thank for investors. all excited months, Michael? also us our team that new have team in and Well, here with you've last our I especially help couldn't And more of management you at be our all to kind X on the you of evolution the the Salesforce. given of

Operator

Jefferies. Brent comes with question Thill Your from

Brent Thill

growth long you cRPO the term business? last you the a reaccelerate XX% can this to Marc, do With quarters. XX% growth to XX% X model, believe building AI into

Marc Benioff

you growth CEO. my a on right, I'm day. that's Well, And I'll tell single every mind you're certainly

with bottom So very that's to But for like I'm ways capability, into our revenue I all this like about the as trust this a mean we've numbers reframe year, X of these of there's future. tell as so am nothing kind of I I I'll about what forward. But there's been me. for we more these you, do. months, excited margins lots investors. incredible I including world. grow. lots line that's the quite software addicted And I grown that's and next I in growing third well. business said also, the stakeholders, largest the than head levels the important to to that And incredible move company last as to of the now top earlier, our line to have And

to we we've and want we last to commitments calls, to just continue have about our going down do, we exactly us. opportunities that field fulfill X the make are you all earnings move to are in time, you of and the incredible as front I delivered we've So sure promises the told this in you, know we're and that. At with thinking to we ball to of that how these going I forward going same do am as

equation love have you, conversation much make right very in right, that to make to to it has it So it's right us to for this more for balanced be weeks. a depth and and to I'd couple next the of make in

As I do in I've quarters, what to gratitude me to my one-on-one, been me of seek our which and conversation been that the as the find last we critical you'll we want a having couple part. all Dreamforce, for have come of X is let's been all last to and just sincere investors and to doing months. have out express you hope I have

You've been the now an company this never that in have we which numbers, in we ahead. has and these with quite even at the insights, to sure we that can start numbers, make could ourselves company things done as mid-$XX been software us a the numbers. that, you on this strength did many have now Even do opportunity the into never stronger we AI incredible key higher, level. of had There's billion of incredible this like I'm company. And not cross we've to see

Michael Spencer

for thanks, and Brent, Dreamforce few everyone, Thanks, us weeks. to joining look seeing at a forward hopefully We in everyone today.

Operator

today's This concludes conference call.

You may now disconnect.

Salesforce (CRM) 30 Aug 232024 Q2 Earnings call transcript