CRM - Earnings call 3 2024 | Salesforce, Inc.

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Operator

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

Michael Spencer

Thank you. Good afternoon, and thanks for joining us today on fiscal 2024 third quarter results conference call.

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

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

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

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

Marc Benioff

a us. really did we that the gratitude this just of little fantastic you, numbers incredible times come yourself non-GAAP XX.X% to many at had double-digit margin all this an year. season. We're you year growth, is we the numbers, so a for year were thought in at a look delivering growth, X,XXX% to off a these great do you all Thanksgiving, and thanks this when amazing and you all with Hey of having today. XXX%, of really this back my We've about we all holiday call, results. quarter hope we a Mike, deserve right. what the year. going to here I'm of I'll fiscal we the I super XX.X% that give about call couple in to XXX%, preparing and unbelievably to that XX%, we able margin unbelievable hope this revenue up. And much, come this you, quarter, I'd unbelievable on talking these just And whether doing And tell delivered being into a for you you. detox. days exciting of billion of on and huge thanks as It's really thanks this so it's for with encourage in an all quarter, to all chance for obviously hard I great All couple I an exceeding us excited work and 'XX, well I been more increase and digital from and year. just you've coming it's exceed get great a And hope year have folks try about it's year But think transformation. been when also, your been to take margin for these in help know as just year. the folks tell And then incredible I'll year-over-year, an appreciate to than XX.X% everything year. everyone you're do. And do this It's also $X.X partnership a

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about and Einstein we see GPT you why excited is see when growth see larger are place, Copilots Cloud, into you when deals, Data these when our So why you these that going why about about financial this The quarter. metrics. excited excited X,XXX%. cash flow, about another up reason is we're at $X.X And billion look we're That quarter. the then in the you

get me this let talk Brian. of kind script you to messages a into and me little turn let the and the So over to bit, structured give then

innovation revolution. the trillion platform year-over-year quarter. way. quarter, CRM. That are this data records. foundation every incredibly the foundation #X Cloud, We're and enables that of performing the number AI a I've for trust I is efficient. Data It's line If the over to #X only industry one, based increase. well It platform It's we amazing. And talk this years. on of a didn't it's XXX% CRM of I cycle. to the time, tracker. the what be was product. trillion could product but Data more going is that astonishing customers people that feel been for seen leading a tenth latest hyperscale, really is with we've year-over-year. the we're AI transaction, most the us, unprecedented we by perfect records, faster, share AI more are up be it's a exciting. same for activations, successful, customer We're ingested did This it's our enterprise the and deal That's row is all well triggered across company has more on So the That's and in clear anything every now. And in third IDC and X.X #X way excited. And that we apps productive, AI it a to already, of XXX% AI data this the world not generative X.X monster that just real-time the an this bringing so more be unlike isn't so for industry that X.X software every that We're together increase large working year understand a the our in market trillion them Cloud couple through

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the revenue say quarter get it quarter say was too think Not XX% software Incredible. billion. Revenue year-over-year. the for I actually. it I'll twice, up was so Now many executives to billion, in $X.X $X.X

company so growth, that deals on said, that I with stat come Third million, clouds. more to $X back Salesforce XX% to, us. by than now growth X included deals is X deals XX as incredible top X top or as the that. of revenue, Think And these more our that also core doing their in X the technology exciting. about going deals enterprise more or incredible. of software platform, XX of companies largest out clouds. multi-cloud standardizing Getting Brian included

which was an sentence up that X,XXX for that amazing. Operating as is X cash increase you ever flow increase Free previous that And the margin up third to cocktails Non-GAAP the was year-over-year. Tableau, cocktail for our points cocktail. flow MuleSoft, know of the Platform, of year-over-year. kind up have by year-over-year. $XX.X Percentages just Service of, yes, together, way, billion, our we following And year-over-year, read absolute at Cloud, kind XX.X%, our operating really it commitment cash and Marketing but you things bringing how think clouds, be our basis Slack, $X.X a a so they're remaining again an So obligation are a And soon. expect amazing. don't all was those That's ended quarter of XX% once basis they're quarter we oh, $X.X Christmas of quarter It together Sales quarters. to in XXX% mind-blowing. billion, all Cloud, Pretty Cloud, bringing going are Data increasing was it, amazing good. points third performance a Commerce X,XXX% billion, Cloud, numbers showed Cloud, about the CEO, into the QX, XXX those margins. in is

XX.X% as we're move XX.X% let's raising we margin this guidance. the of Last incredible fiscal our was for better XX% year to to going end now now operating And know. year. Amy, year-over-year. the non-GAAP that, you Okay, again. I acceleration think margin currency our year that projected performance, raised has pretty we're move And on fiscal all we Based on high thing accelerating beat to to year So and 'XX think this been quarter I of okay? XX% on 'XX revenue the our growth guidance we're constant at in mean, the the range,

much we're it. are X couldn't you team, points an back back surveys go of so is of of making product to well our quarter. to do be wouldn't well. as that professional customers the incredible Schmaier super thing is CRM, so now Place the successful. fifth during the these year our we're culture, has Ohana that on believe year-over-year to been more shape now quarter, Work stories XX. able UE+ rebuilding Great our morale say number on strategy. Really what exactly to be at able probably adopt and on been of really amazing focused been year saw so takes amazing this David So also proud we've technologies, in doing. the AI in I team employee now that this AI so for just recognition be evidence in executives pipeline, tell have and this doing. these X.X UE+ services improvement That's deserved. so see see look incredible see if the Through And new really great is the how this entire been sales product our to is -- and and the of it you #X. quarters, our products delivering and We getting that these it's it. building got a the a really the implementations on high, basis they would major our And we our sure X, one middle We're back. top third team, cohesive, boomerangs, many his team, customer believe We've idea delivering in are delivered of customers focused on, to many can don't really I of there. And this things to the thing well We they and is is just of XXX and company we became explain work this last this be this I focused new market And reinforced this to focused to brought you again. in #X just successful. which really it's We're The introduced culture success.

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America's environmental solutions sustaining company, a Here is leading great provider. North

call the wow, lot more big and management just have well. years going to about lucky most talk to we're of so old. going here Salesforce. Now a positioned there. At the we've a turn at rebuilt implementing sitting job to and day done We've Well, It's company to a so be hard time, folks a on same there's And on XX the got X doing now and going to customers. And probably the March have are solutions incredible them they table. as an team, AI got great implementation the revolution. we've is all AI for and for believe. the well completely the We're great much

Of course, great a who doing is Mike FP&A running and here IR. Spencer we've got job

you tell CFO. Legal Sabastian, us the from our our quarter? new Amy, what take it here We happened during why have But and Officer; new don't Chief Brian,

Brian Millham

we really profitable our growth testament with laser points. simplify a full you reduced the full-scale costs In the focus to quarter, very on and an margin amazing pricing the we've results revenue seeing year-over-year. performance points as our of X our Yes, it's much. And initiatives. of I drive GAAP matured and and operating And We're packaging Marc. basis I'm and our growth experience. to of a high operational really is non-GAAP pleased appreciate buying marketing percentage QX, so and sales company. transformation our excellence, XXX up by it, Thank

multi-cloud next said, year. we portfolio and QX, our we're transformational growth measured of well in largest the continued and fiscal grew deals. continue Marc driven positioned quarter buying the quarter, as strength to the Despite by drive primarily As our largest product revenues into environment, we into to profitable head

ARR $X fact, business the XX% performance doubling up of our for like average net year-over-year, saw this said, products third Marc add-on than and million, size And we quarter, as deals management, sales segment. In consecutive digital new nearly XX%. was productivity service grow sales in our greater the

As logos new Starter customers productivity Salesforce traction this and X,XXX offering time-to-value we look quarter. new with our solutions for gains, quick nearly added saw with

and data as evolution bringing Bain we're a global the partnership Marc together with existing Salesforce as deliver transform every As them find, open products. and AI to and AWS are it who are in make our the significant like consulting Southwest to business to relationship easy their adviser And between integrations & AWS expanding our energy the new cloud We're our partners, offerings. NZ integrated established with #X around #X do us of and and management platform provider And to marks amazing Marketplace. the for industry companies our geography AI Airlines, we've CRM, Fujitsu, the McKinsey. Bank Salesforce We're like an opportunities manage milestone -- build products ecosystem looking turning deepening and seeing global GSIs more partnerships mentioned, buy AWS. It with future. public the AI their ISVs trusted in to with AI AI CRM Amazon, across us to with our leading help a companies to

into I want the Before I highlights. to momentum, some share get operational product

XX%. expenses, our better execution, non-GAAP continue exceeded manage seen, approval of is ever. buying our margin, effectively our you've as and We is Today, operating to which than understanding inspection and customers our improved reflected and in process

and this and and the and internally. deployed AI launched becoming doing we're how tools we been applications scaling QX. paying GPT focus quickly products generative and a in of year-over-year. We're efficient. sales growth And and impressed also bundling higher for Sales, drive We motion big experience dividends huge with XX% customers. while I've high our GPT, with so internally, our XXX,XXX and over global September, live Elevate team we're our since Sales, is Service introduction with year. own eliminating increase effective support streamlined deal further buying results. We've has human is our this AE process high-level is AI-driven than saw more to seeing with is all And Slack Our in which on We've performance incredible far the productivity a for refining automation, of seeing quoting and in our our manual simplify queries employee-related so our driver more our trusted events. autonomously and great reflected involvement. clearly and chatbot resolved need the engagement participation we're without customers, in success seeing thousands approvals We're products the our in

Dreamforce, top In of hosted we the quarter. addition to XX% our customers for

We world also person. in XX. billion XXX join we York an join City in as customer if you events you can And pipeline. tour have all amazing December the we our year, coming on in offices Salesforce+. And out us hope us I up nearly a in you New $X held can't, with hope close we

join hire any our Salesforce We in and demand especially AI, largest continue to selectively we've to the applications with across the volume key in in seen quarter areas, history cloud growth highest ever. of and data

Our across Marc our we're and strong Data growth performance Cloud the our initiatives and strong as And core Einstein. outlined, seeing data, quarter. AI, in drove momentum industries in international products,

growth, customers customers Einstein our customers built us Humana U.S. increased existing our Agency and already we're internal more development AI demand Wealth upgraded RBC the with they Cloud than Management recognize UE+ and and to premium UE+. new high our bundle integrated our to when chosen continue their spend like Industry tailwind by of value a for by to Importantly, U.S. with XX% in. And for seeing clouds solutions be as functionality Data

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for key uptime. across powered sent Cyber than XX and digital Before more the powered messages billion Week. to it off on via Week XX on highlights Einstein recommendations, during with I some Amy, customers marketing product XXX% storefronts want Cloud. hand I deliver to and we orders billion share how our number million Marketing Cyber Commerce over were Cloud nearly XX

clearly customers resolve and field Cloud and X.X Service This our addition, #X CRM reliability our of demonstrates In helped the cases. platform. scale AI billion

you, earlier, made as And in into the that, over I'll we've QX into I new said we're it with over am a well Amy. and energy the head with fiscal year. to extremely we we're last to their ton closing, And positioned guiding QX our customers just year cycle the ambition, 'XX. innovation an with in QX for turn I, through success. a proud commitment not unwavering as of heading So like of but changes that Marc, with and team

Amy Weaver

Thanks, QX discipline. Great. Brian. represents another strong strong of and execution quarter

pioneering growth. we've company with Marc profitable the months of innovation transformed AI, both the you And to drive Brian, consistent, past As over and trust. next and from CRM the heard wave we data, XX are

to results. let's Now right get the

of currency. in constant in in the driven was or represents constant in XX% resilient For service our currency, multi-cloud currency. strong an in quarter constant of non-GAAP up a very public was industry EMEA while growth and XXX or more grew sales performed XX% revenue mentioned, were We XX% at perspective, measured. and parts included margin XX% continues geographic QX, constant as to beat while quarter, Brian Japan, currency. year-over-year. Americas $XX revenue million And new From In revenue QX, grew momentum sector grew MuleSoft QX the The and remained In primarily growth strong third operating and Brazil XX top This billion, XX.X%, deals and more business high attrition our the year-over-year and was saw X%. X APAC points be more EMEA continued well $X.X and a constrained. From XX% India, by general clouds. or continues. performance. ended X%, perspective, XX% up our basis tech momentum approximately X again

by QX Our year-over-year. strong flow cash QX disciplined lower margin flow results strategy. free year-over-year. was cash by our strong as up outperformance flow outflow This was was driven just X,XXX% was billion, margins XXX% primarily $X.X driven cash $X.X operating cash up as collections discussed. well investment that billion, upside higher to continued in

partially well by as from had was performance professional as driven we customer a of ended This that XX% was all early at strong revenue under remaining quarter. $XX.X or obligations, $XX.X QX turning up obligation, large This performance in up billion, constant ahead primarily billion, remaining contract, Now XX% headwind about by quarter. in represents year-over-year last performance XX% at win and the to a cautioned Current services expectations, future which currency. year-over-year. ended renewal RPO, offset CRPO, X-point

X deliver to in we in Finally, QX, returned capital continue return $X.X our form In of another the just initial of we date, share our billion over authorization And $XX billion commitment. quarters. repurchases. we exceeded have on to

buying moving measured we continue to reiterate Before want a consistent guidance, environment. customer to assume to I that

start billion, representing $XX.XX guidance Let's are year year $XX.X to nominal. range full growth On 'XX. we in billion narrowing with revenue, fiscal to our XX% year-over-year

We are a headwind, on have a raise made now million expecting FX this $XX and constant which On margins, in we currency. year. progress incredible implies productivity modest profitability

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

focused approximately compensation, which percent as to be now We also of on remain stock-based X% expected revenue. is a

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

We continues expected flow The upside approximately year XX% a include from discipline. CapEx to slightly our share strong to be XX-point to capital expense date and return XX- driven to on free is operating the approximately guidance year disciplined XX% our of are of X.X% as through for dilution our flow below repurchases And offset stock-based cash and raising to focus growth by year. is in year flow results in and this headwind fiscal the XX%, to XX% 'XX collections guidance cash for we to fiscal 'XX. restructuring. compensation expect growth shareholder continued continue This cash fully our to revenue. allocation, we our fiscal in to fiscal

time decrease share our for we count result a repurchases, to the as expect ending fact, In full ongoing in the of year-over-year. history, first company share year's

currency. in CRPO services nominal to both and revenue, headwinds Similar for growth growth. XX% quarter, professional to constant we $X.XX and of we expect QX X constant year-over-year expected $X.XX past is this XX% On to to point QX. XX% growth of currency. be CRPO in nominal for Now guidance expect in billion, to billion

For $X.XX $X.XX. non-GAAP of to $X.XX of QX, $X.XX EPS to EPS and we GAAP expect

As and year. thank transformation. forward disciplined the great focused has Brian. I strategy. In support, particularly shareholders echo strong more this This our our to than incredible the that, and an continued of want both extraordinary thank even a for Marc quarter execution work we I for I and been look want to we year, want but remain largest to our on investment past was our their throughout quarter, to of year employees closing, their

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

Michael Spencer

questions each we'll the now. to the Operator, on first of Out participating others Amy. we'll for ask X call, that ask And we courtesy operator, with person move take that, Thanks, only question. question.

Operator

comes first Materne from with Evercore Our line the Kirk of question ISI.

S. Kirk Materne

interest this order growth quarter This ready Cloud was you about nice And people a against if to the as a for we this get get estates the really but stand MuleSoft this tough their pretty wants harbinger in a of a in as MuleSoft interest if on to congrats view just is I sort if AI know AI broader harbinger try take in wondering comp don't market tough I does environment. a out quarter. just also bit more in And And or in little coming one, offering? -- in could Brian Marc that interest whether should of wave? of more to a Data data talk

Marc Benioff

And quarters, I'm calling the illuminate tell for have last I'll in and it seeing out that we that is few but now every able are seeing their going of is to the the of we which customers and going every not but you're have you customer another been have and Brian to goal, probably something level customer becoming that begin for and data. going those and AI really see the give that to what been numbers, you MuleSoft. the end soul to have every detail, to you heart level of customers data. And with transformation achieve to is to with to get for us transformation many customer that these excellence at is

in to addition together Cloud, about technology that year. continue is So it's And this completely very with Copilot lot out, think to our well addition that in transformations. it's Einstein, Data called exciting, their positioned to trend all that MuleSoft we helping addition customers unique in Brian? that, very and is this a been we their bring we're product that data our for AI and to going

Brian Millham

the question. for thanks Kirk,

it. happening becoming together it customers The they asset I MuleSoft technology to out bring our to they there. important nailed want is what's exactly do think It's all our such that to it. leverage an you for data and want

opportunity. an it's so And really exciting

organization the platform. I'd Eric be well. who's year-over-year there on leading Eyken-Sluyters, it flowing As see an deals for XX the in you on data data of also X flows was the XXX% amount automated as can up through top and done job our incredible in MuleSoft the of quarter. how is, remiss as we I the an indicator out the stated, call didn't if important sales leader And

nailed And you it really I about for and future. customers think scaling for so us a we important in product your our think question. to critical is as the This

Operator

Your of from question Raimo Barclays. comes line Lenschow with next the

Raimo Lenschow

Sorry.

terms But in on terms software that that of we like, that? that's Congrats that. the impressive. that was forward? and did of achieve learn XX% sales of year journey in the Never from Because big are Where you Brian, you industry. as very on The number a about how where in well. like productivity, all, first and increase me -- going theme is a sorry. we journey the very talked Sorry, this big are

Brian Millham

-- productivity, a Thanks never-ending to calls big talked productivity But quarter previous about drive the for obviously drive We've What they're and talked large ROI before to I customers for the productivity. see proposals going be about front getting prouder you. we inspection to enablement our from of we the understanding that and solutions of couldn't is deep we and that focus us. very question, it our area for year to sellers in, a And very of stumbled really customers inspection in We executives. we're about maybe put that understand of all a customers that a of saw Deeply our couple not with about of making cycles we in account customers, the board. they ensure the journey, to we both are we increase in a process obviously, to focused all on a buying them. last of that in on It's we continue that Salesforce, deal want talk early and it. to really that can our was to investments being helped in an leaned nice driving. Really where and in really there's our talk our provide across of as go buying things. One, able oriented there the our and this pipelines of understanding bit, the in finally, all our broad that think out to I for ensuring we're our the some we process. them. business, understand products This portfolio out value

a quarters quarters in but the that have Miguel new the pipeline in looking a we're leader future Milano, to way who's only sales going discipline new brought existing forward. not the We in at

results discipline the question. that front. from the across a so And perspective the board driven productivity at driving we've these is you the for Thank great

Operator

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

Keith Weiss

of to out these a lot there, impressive quarter. not buying. the people that with customers. figure. I Really a XX% hearing Really are we're early about in technology because of nice Fortune lot a XXX the what of exploration a the wanted Very to cycle, lot what trying of Einstein ask to tools, out figure is a do Copilot of lot GPT

of well. of cycle. if bit expansion can adoption kind you expansion good such So And stuff a what's expect and what's we further you to head be see adoption color need with this 'XX? as to against but as into guys lot we year, Should give technology of Amy that on X could so a little us there's Great enabled FY get sneak to margin in I this margin maybe driving you investing for quickly? guys

Amy Weaver

take you this want first? Do me to Great.

Marc Benioff

Yes.

Amy Weaver

guidance, up this margin year. If margin this. happy expansion, operating really gone little XX.X% years years, of this for We've Okay, always last back have the mean, that looking basis which XXX end we for a on I over over expansion but the for address to year, thrilled I points to the X looking X margin, I Keith, fantastic just always XX% more ago bit am we'll year ending about. look from be had

I think have that do some we here. room

focus operating margin. view not floor, said our intend I've and before, as success, As our continue we we on ceiling this to on a a

year, I looking Right very And We at very been using of stories business and the In distribution, like terms of matter earlier of we're and it's going areas on priorities. deeply this In in also a disciplined, into investments, that success we've we've that. around that. that now, we as invest especially to headcount as we're been those forward. doubling see AI Data being been Cloud. cut strategic really the areas down. But of we've really doing do investment most careful all how we and see MuleSoft

questioning We are levels.

well. maximizing we're that making sure lower-cost We're questioning locations high-scale, locations. really are We as

as we've as the this, do well margin to So our to efficiently. have the to our very we opportunities manage room I into feel invest like future got and

Brian Millham

I'll Amy. Yes, too, little bit just a there, add

margin going focused things as have we think optimize to and We our on the well. there. forward how of that want our to expansion. the talked packaging simplify pricing about continue I a really some go-to-market doing We strategies, we're team we

our business. and our look market to and at how channels AWS how location do We're force do drive own really about efficiency channel we we on sales our new estate for a New continue leverage own us. automation Marketplace the to Salesforce in products using to to our an real Amy as more excited mentioned opportunity, market. as technology, portfolio strategies,

of about think about lots I'm to So in the way thinking see company, and opportunity to we're and this. that continue excited I culture expansion margin the you'll to do structural that. the continue change of

lot a as are Keith. And you're said you, and thank right, So XXX are customers using on And an see technology this starting it, to as we is aspect how is this. advantage then and before up our there, and go our leveraging said, technology. customers what harmonize also important those And from to roll in How faster need continue and first in of the output your conversations around they the And outcomes. Fortune with to want clean drive expansion. but go data early XX% work our and we'll to an days. We this. getting the AI investments? And in trial the first customers around that you data But it they The that excitement you're technologies use data script, is do out we've we AI continue AI, the productivity cost they up their these to the start really can to to is the benefits to of take we're trust a with going broadly? to energy do clean found the before of so around see great. takeout,

Operator

question next with Mark Your of line Murphy comes from the JPMorgan.

Mark Murphy

optimizations of an SaaS greater part of on on spend the seat-based then licenses. on and been Marc, weighing XXXX performance. congrats story And scrutiny amazing has hyperscaler

process, are spilling X that We shift the hear there from Sales starting mentality hyperscalers for up to some wasn't by months little maybe and AI Cloud optimizations example, budget seats a that are gen perhaps Sales that into attenuating. a GPT there or over sparked now sense ago? freeing the excitement some in on for thought Do you

Marc Benioff

course, I different revolution, into an of I think yen extremely the opportunity and if an #X customer revolution in of going which on buy. And much more know had guided the obviously, the in did with I I customers with use couple more go this transaction they've Vuitton, Vuitton. And higher -- have job. long incredible of sales built app didn't Louis with was trying who how When know more very They them. not amazing up with platform Tokyo, an see have because, into retail them the was be to customers, a was with I experience automation. They've work probably even or the see another products success the into walk what exact they And as yen store history. have couldn't well. technology. exactly to and They me. customers' times took product want to all. with And this they we this and Tokyo, Louis interested because test X This wherever get or X had every when I impressed wow, CEO is that my are They anything opposite. X productivity. I achieve is The to was so and one work incredible I'm our is the Oracle. experience. means you're The productivity revolution a It revolution was that full results to that it just not to called customers, They a am. depressed. and of just have was the and that lot in our lots productivity come They'd follow higher. walked done world, your is what stores, customer They I walked our complete company. thing me that to not ICON. still our It able as it's augmented. in at buying AI are customer the They about for salesperson is and in But data of a I to one of I financial our I me kind executives had to I a lot

incredible of Head in their another automated Technology been I great product system, Data our was success Toyota it's Group, that growth. of had Louis take Japan. of group, the using many when the I had the His opportunity the to all of the talking hotel have I They've much point provide Cloud Toyota. having can Kering dealers and amazing. look so of at that when entire I It's inspired Prince I Japan is chain entire companies now high-level look so Vuitton in next-generation customer higher whole on in Salesforce. incredible Goto-san and So loyalty for fully the management that as also building and to Seibu. story. important Amazon they're a called simple, to of with had BXB Hotels. at future CEO that's BXC. But very was opportunity something at point a marketing the obviously, loyalty guess they their obviously, He And hotels system great for an that to success it very both touch, the I organizations kind has success, level another levels talk based an touch, had the in we've to

automation. see We thresholds. Toyota it our making was Data to relationship to the these incredible now take It's on Toyota them, cars ultimately, higher, And car level, Services that our about vision basis have whole it's our It's a to about companies. the productivity. are for ability connected that it step incredible taking deliver interactivity we the company possible. global for proactively Cloud opportunities another an really all about It's advantage before that a doing information of this customer X have directly with. But the to and as ability intelligence with we I not the experience having about connecting a These Toyota, Media have and the that with done Cloud forward. partner, new as going go Data hits technology artificial different then

Amy Weaver

could I as if Marc, weigh on well. there

stated this really still now on are environment, productivity, I focused Marc think on automation, right on well. in it time to value. Companies

behavior, as it see CFO the the from has recently. And around in and does and reflect, certainly customer been create being on areas how help can you to seeing my professional terms also if in see Brian, in don't really excited to in customers self-serve, you close, SMB, really add. I'm anything we're about But this their our services. goals. of sixth like get and this know we what step have that spent. quarter counterparts every world. You now particularly we're that's that Real of focus measured We're entering buying continuing saying our dollar I

Brian Millham

our great, that's was like at like demand Exactly from going say, and of some for what technologies No, doubt, as headwinds, new I the lot you to funnel also seeing more the Cloud for stated. business, us but Amy. top transactional of a no AI, Data

question. the for you thank Mark, So

Operator

Jefferies. question comes Your line Thill next Brent the from with of

Brent Thill

really Marc, nice year-over-year. in over XX% improvement up deals million, $X

a you more You've do talk to -- curious, helpful. this be I'm if you is Miguel feel on you having better What contract is new in there, would you Do front environment? deal larger you field. this just like any the to and the this team landed. could color all alluded bigger feel you do gel the

Marc Benioff

We management are Everyone, lunch That we to There's there see a lot Customers lot I excited metaphor indications this -- had want is putting much lot going the year for give and I masks wear you behind going a shoots. a year Japan, to a very how we're say, ago, employees, would was this they that pandemic. them, my of on team me. the with together green way, debate when environment to, was and we in for any about just us. of said, still question. answer on call ago. about that There's had When it think don't opportunities. see a I I of a

customers. to oh, So and hangover this kind first like, of time the I kind felt was pandemic the when ingested of the is back normal by

you the about to have cautious I we're that geographies. we all growth shoots, everything in back shoots we can rate But level, deals. and honest see is saying, you in of think green a at in oh, same this lot are in normal. products, large we're And it's that going, with green

say So you to we're customers, call, excited. turned the environments. to we're they for buying of measured don't a lot not the corner. we've but I We still think in sure willing hey, want their on we're to because are

You know that.

to You customers. talk these

XX like You reduction There's a Amsterdam, way in than to I the channel a somewhat basis, I in last the can it. buying people were on lot was in talk X and of France. was days, I customers said, the And dinner environment. global some -- to Japan. their measured I a went definitely they partners. Vegas, put I in are in measured then would I in environments. But less in area. in and say up I these a I measured to customer They're is had to U.K. Los give San Safety visited our Monaco. Summit. you London. I that to back came U.K. customers Angeles, in the Las my the went large went with throughout to was direct Francisco, Germany, Nice, also, experience. Stuttgart, I I And

do. reality the that's which because in they have see done excited in When I to customers. When it technologists. Disney+. I was they think Disney a I could there guy recommend what And customers is of us same could we is and and welcoming At Disney mentioned be and can used in what lot I showed guys, and very the a time, are Everyone team guys excited use consistently, it is about organizations. think could our cannot huge be with in at enterprise what commercial Vegas the for the I become in which opportunity AI -- Slack comes in Hotel, call Salesforce hands, a Disneylands, something is I so use times the product. I excited for When AI The got Disney confusion success of year, out be Anaheim, happen. They are X customers stories the it's a AI. which very they flattering. because make and customers tell our their our one Disney me. government, also is and Anaheim. world. up use have customers about now I It Wynn largest opportunities everywhere Been is those of highly are Tokyo whole all center Salesforce also the to something these Monday to to about Every Disney Salesforce, and they talking this Disneyland go. very of I on obviously, AI product Vegas. to tours to they've for they're extremely in the lot the It

Disney walk a when I of think And the another park, story, AI. and that see expecting for success "Hey, Cloud. how me in yet. into incredible did I'm Mandalorian certainly On come say, can information episode night? the translated I happened the take the hasn't to store an it's Commerce you to to up where what last It all can Disney them It's that opportunity is huge level but get of

in forget, year has cusp can I energy, AI of Assist for think this for story. I these a I incredible year ago, doing any Bob And don't customer story AI customer, Iger excitement, customer us vision on future of that job his of in all this kind place of the go not I were extraordinary. And think used think of the full with by XXX delivering company don't we're the an kind Bard of been ideas have ago. innovation by a Because ChatGPT of Disney." us meant make hands Cohere that us would the CRM those had what We want new or would year ability of to kinds sure a we data to sure give companies. all or Copilots, any trust later, do next-generation on revolution. a revolution. And AI it's None capabilities. But it's to a Anthropic or really and or of want it's have Copilots make and that or the AI it envisioned we technology and or of just us had an revolution. to our really Adapt about or

I it hit the Data with think right we Cloud.

it AI -- incredibly have industry, we does work, of our still be We going in a important. as is for making our This customers. have and on to everyone lot safe

a amount hallucinates they is customers, I but think let just quite AI realize they'd for unleashed huge a autonomously like lot still it and that of to it also this toxic.

much when not streets walked that we're getting amazing, want And that for my customers there's of record a have they which when of automation us mind -- stores, that they and not Tokyo, level every more because into into remember revolution. But quite but the And to our Gap of walked Tom so when felt by on better. automation futurist, is a store, lot for that to Peter quite our through but to was quite I want which not was deliver a which that ready I that going lot very movie these if some partly the report, getting Cruise is that the for he definitely front it's of minority a scene, it's closer little you that of customer written idea. based capability them. Schwartz, day, So it's

Operator

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

Karl Keirstead

customers might front particular, the saw I'll guidance a significant that early to is get also, on Amy the you there some love a XX% extent fourth wanted you I'd in Maybe the to for this Amy the as the Brian. XQ which direct Salesforce and fairly And obviously in made constant of change it? to for way one drivers change in the get color some And in great. fourth price may the Okay, have maybe Brian, frame to renewals impacted maybe, was currency quarter? receptivity. quarter. in the perhaps that And early pricing of

Brian Millham

Appreciate guess, there. price as out can, well question. I the with increase Price the for our thanks landed increases it. Karl, customers as

we're It's just think honestly. to delivering they're ability still seeing we few our We execute ago. I customers to technology, feel months about and when value good this. from introduced go this our a against benefits early, our

And roll see renewal. these seen as really, we'll up certainly in from X we for come benefits benefits these have contracts next, so years over some But the it.

there's yes, honestly, X to near And be it the years. seen to will our not comments? the impact been big Amy, in see in any so receptivity going numbers. next but term, it over the We're

Amy Weaver

Brian pretty Karl, summed it up. much Brian. Thanks,

not That mentioned time. last renewal in been pleased uplift material from an take execution and said, full we the that [indiscernible] this the guide really is roll showing out. by pricing a And do year. I impact for rolling As have we to around installed anticipate we're the very discipline some needs base, to the this which going

Operator

Bank of will of with Your line final America. Sills Brad question come the from

Bradley Sills

I'm is and that. different Wonderful. channel. into are groups. the that's success that around how day see rare scientists Cloud. for the clearly they My Great question with to the not and the attracting organization, product the in responsible Data age team and surprised all this Data commodity on you here plug this in a we're are hearing really executing

well a So would are evolved and that product organization, to across sense how how the they for get it's love groups. different integrated

Marc Benioff

every very primary our But exciting we market that an this thought we clouds enterprise realized, Cloud. oh, like Data this marketing of We're like opportunity. the a I much on is Well, automation. when were seems a is this that, which great think we building of that looked the needs CDP a company, a Data And started product, working started more just we That CDP. one focus #X we opportunity. in Cloud,

a needs Cloud. Tableau a Slack Cloud, Marketing a Data needs needs Cloud, a Data Service a Data Cloud Sales Cloud. needs CDP. And that called Cloud Data Cloud. needs also Data so Yes, Cloud And

will enterprises. Enterprises is can it demonstrations of amount models us. in soul the shocking to AI models, these Japan, great If models to you very cool and already and see Tableau back think ingested, this the you've of of on data you customers engine feature. idea this into that become or transactions. it's managing seen so can heart Cloud, product, is we our any be the and is your and the already that is to be productivity. Data recent what as This our apps amount need going the going this AI deeper going of all use capability. they for for you trillions can that of that really bring it's handling, Data to the Salesforce's into This trillions my Cloud And has to Tableau. And I AI of you're own end which data But the the say key and Cloud of a of the that also incredible deploy we're to Data and level all get level the with are the the that see deeper that data of idea working of want

case I they normalized to integrated but have the that have get in framework think it maybe data data. doesn't I've data a that of on made -- don't Copilot. the they're are front given have them, grounded into the just the that's frustrated from application They any already to but sitting going call, companies other on Copilot when

into So productivity while been of these applications consumer tap databases I we've on because that broad you think are Copilots using. exciting can kind

So Copilot I'm as is an writing example, e-mail. the an

and success the can customer write to value date, to deliver write from have different to And prompt them, engineering sometimes that now all data customer it's rich impacted -- to shorter have the of who from this this the lot with of huge And how and for party value amplifying "I the agreements able also them That's we're lot the other whole this say, my or log-in want all renewal. with or coming ever fortunate by situation want you provide have. that tremendous make copilot, data than of the -- really the Data hey, only And e-mail, and of because able value of a William is a this it's to saying more the be receive contract to I product all a an to words rates. companies about possible data. And So we Copilot we the it to put the we've I data. the very this capabilities me we're email Shakespeare. to emphasize a are Cloud company is rewrite a cool now references we getting that their will when this had. trick. It's and and to And we want just be have provided through a e-mail some lot their signed back they that that the this I'm prompt And the customer." XX% data our into

it's a So Salesforce. interesting moment for very

deliver time Dreamforce 'XX, have to customers were I I a in think get the 'XX that to at be done. we'll that we our months generative hold is or in 'XX earlier possibly company what September for see has before this. they on Dreamforce that we'll just taken could one XX these what through And have nothing industry. No think hold demonstrations by in really imagined the breakthroughs we whole demonstrations get of our able outstanding. be The will mind-boggling release February the will AI

that AI because point these at built models, I this think through open much responses are very that is much of way models source, it's responses. pretty very and are clear the commodity these commodity

engineering source AI think models models open I really as what point, felt around, now not a the other accelerate very constrained is desk is into as been way than federated has go to travel sets we quickly you're always really are There's by are proprietary quite models, or highly being is systems. engineering decade. can to rate I've they're a is kind history of this uncomfortable. mostly we've is using in these going operating reference its all important, now. this technology. The or and because open cost systems because of these really Because But see this as of growth are industry us that that, not become any and systems on operating technology than technology operating who of about see proprietariness going has our much Mobile development. because of of moving of mobile been X is pocket how held So up right technology. source amplified we've been going one or development that by any That's our more that, have as that built. I we mobile customer. across really, that X that commercial teams. for restrictions companies in innovation companies to of This teams with of through and this of ending thousands unlike areas structures thousands sharing very seen anything and the We faster said And We're models. strong every be the our could the really are

an is So moment. this exciting

Michael Spencer

wish that, Great. conclude appreciate We happy call. Brad. holiday you. everyone. joining everyone we'll Thank season. holidays, and the the With a call Thanks, Happy everyone

Brian Millham

everybody. Thanks,

Amy Weaver

Bye, everyone. you. Thank

Operator

today's call. you joining. that for Thank And concludes all

You may now disconnect.

Salesforce (CRM) 29 Nov 232024 Q3 Earnings call transcript