Salesforce (CRM) 29 May 242025 Q1 Earnings call transcript

Welcome to Salesforce's fiscal 2025 First Quarter Results Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker, Mike Spencer, Executive Vice President of Finance and Strategy and Investor Relations. Sir, you may begin.

Thanks, and good afternoon. Thanks for joining us today on our fiscal 2025 first 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 of can be non-GAAP and non-GAAP press results commentary guidance Reconciliations found our a As measures. and in our

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

excited Thanks there's the so right. been I'm talking really much, things about. Mike. today to All because that forward call for X looking really I've

#X the of and first First in by both #X still is row, intelligence. Look, is second XX% grew constant in ranked the the billion a going today And worldwide in We're let's managing IDC the see our the technology on our than And constant because revenue for really Salesforce now guidance. with at based tracker. I intelligence. And they in incredible AI. year delivered numbers artificial XXX in $X.XX This latest up which incredible transformation to data Subscription that financial turn share part more and be that's is is our I'm nominal the transformation. transformation the petabytes currency. and the critical of gets to get can artificial And a provider. as XXth QX, to, is of customers. as XX% to to also, mean, financial from XX% core support into CRM revenue, provider absolutely currency. now we to year-over-year year-over-year work for that are our going happening software we move you all, market

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As then and proud year-over-year. will financial from greater and including I'm team's in 'XX profitable operating our cash we you flow see Amy and QX this continue say, scale, much I deliver and to point at the extremely also basis a XX.X%, determination results, detail. of profitability And improvement Brian focus to quarter. in of this performance discuss world-class margin remain and XXX fiscal incredible can would non-GAAP to growth committed cash expect results, our year flow

models, not the few transform. enterprise when just some being company some not billions, you of As customer use and the with the I not leading at their these more that of customer And company's And the and models metadata these with relevant of as lies. realize, customers critical that this to where thing enterprise some about make well day, data dollars. these they will models commodities and models, factors. There the generating know petabytes said, petotypes AI for the a hundreds ahead precious don't be They're built is enterprises financial for few it's Salesforce provides just artificial for the I open data, are our mentioned, UI the every describes and incredible industry, of training about data close the But critical anything AI, attributes these will intelligence AI created success need look generate gold It's a with the some by thousands are couldn't AI in power and but of transformed accurate manages, not and source new are transformation metadata the we're is you the relationships. Each and can that contacts the Most one next now the Salesforce across output. and as only AI I material. source now, intelligence. output opportunity which models incredible years. the as the in excited results, where Every needs XXX of that customer not survive. to world, every in data with are work in

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of for Einstein. Einstein predictions AI know, we've with across generating billions our per clouds week. As of is per hundreds predictive you day, trillions all delivered years,

first Studio, higher generative to Copilot technology deals closed our live use thousands GA. gone the capability. all of in cases which the develop and this Einstein Copilot working hundreds our quarter, And levels went prompt our with AI in few months, has of of Copilot, of seeing power customers we're since we're we've with Einstein Now builder, just incredible last Einstein

and this could be and Hudson the Bay delighted customers leader with AI point the Metrick, not absolutely can seeing in are for across We platform we're excited a Salesforce Cloud, quarter. personal more success more every power went on company. Saks fashion create Data trusted the part to new luxury data, is great their with to capability. Saks, touch that using our activate with all-in all experiences market, in customer our about Einstein AI. in of Marc its CEO, And unify One customer

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about journey think sales, for top efficiency management, includes This core the content service. And growing we data This revenue. automated hyper our customers valued Customer FedEx not while so FedEx? much builder more for that customer commercial to ability for personalization, next see now we're functions When sales played business an power FedEx. opportunity is This the commercial deliver capability assistant, across but view. only accelerating service, at customer structured delivered is generation integrating asking, we've of orchestra experiences well workflow these are lead and of XXX line know power best sellers, static a they by I'm Slack effectiveness, when the on and a customer the AI days tailor unlock efficiency Customer FedEx, at a on look do virtual based for to action effectiveness delivering potential that of XXX, that next of marketing, nurturing, we scoring, no, and dissatisfied, incredible has Now gone these of to never AI the experiences customer leave together the delivering that of we conducting delivering not rules before.

and this transform that a deliver incredible level have to opportunity companies of profitability. You Salesforce sellers another platform incredible all now with convince their capabilities to significant can

company driven power like intelligence. are that think I stories driving artificial all of it's by and the forward, our

Air Another story in data is and quarter I'm with excited India, really transform about the AI.

data more they're create growth. platform know XXX,XXX If cloud Cloud, unifying about airlines don't warehouses. you They a have India's for multiple than who's each Air service to Data across cases systems incredible single data month. and with an And loyalty, amazing India's acquired truth handle to Air airline flight of source this reservations, India,

when recommended capability and with Einstein, we're our the right at system right that now high-value right cases like flight intervene a the classifying automatically agent provide customer delay, the is happen to sending next even passenger and summarizing to able and and right steps the experiences, time. upgrading immediately in things to And

that frees Air personal capability. a to a company more using profitable, to service their more completely more efficient up relationships, India, productive, more agents deliver create of more All and AI transform that's personal

call to this transformation this to financial artificial We in about forward we've and incredible these these transformation more margin you numbers talk incredible are now with over flow that and the transformations, to gone intelligence Brian. cash incredible through and looking

the Thanks, to Marc, their you thank today. us also hard I all to for quarter. want team work this of and thanks joining for

We're my in excited entire I've evolves seen As CRM rapidly career. data it CIOs customers Marc technology at innovating the this ahead. not AI could about and the and about well operations. [indiscernible] for pace AI CEOs be excited #X the and AI front transformation. I opportunity we're more positioned and office opportunity their good incredibly AI impact with said, seeing not We're demand as are how can a

We our across innovations and all continue our levers to focus multi-cloud data the industry on international deals solutions, AI expansion, of the course, Salesforce and ecosystem of clouds. of growth

Now let me environment. buying the address briefly

see compression QX bookings. where we behavior years and the to continue deal and buying saw levels elongated moderated in X We experienced we the saw budget the of cycles, similar and saw we we stronger deal over momentum past of to with The in measured high QX QX what scrutiny. exception

and experiences, productivity QX, and intentional the the strong same changes we bookings of go-to-market our our our levers; a And top were business, ongoing growth including also X transformation, deals, deals, performance. At parts create we momentum industries. clouds, of portfolio. made In long-term and in various our role continue core customer to some with Cloud as highlight again, we organization of or multi-cloud the in the addition, of in played showing time, depth our drive a seeing quarter Data more better to are in for softer particularly part X drive us which XX in our relevance

on results. data a from sales helping and CrowdStike Einstein sales force XX% you and efforts company complex and of third-party entire decreased on XXX-degree of helped sales Marketing new siloed CrowdStrike, company drive with is CrowdStrike backbone front now delivery customers, reliance relied We align and they'll of now Cloud, leading by them to incredible maintenance Salesforce longtime across in Let applications. Salesforce use costs that and by me driving the service and CrowdStrike added every trap Commerce Cloud, using MuleSoft the XX%. office. the project and CrowdStrike's the marketing limiting Data also to just Revenue together already quarter. a and view one Cloud, data their Cloud growth. They're Cloud build a Data leveraging of MuleSoft customer has lakes to a and example [indiscernible] One Slack, MuleSoft give is operation aspect accelerate cybersecurity pull

marketplace more Cloud growth all lacked in road pages, helping lever its Autodesk with to it XX,XXX companies As months. And in customers, smart customers on Marc brings To quarter, over is choose Federal and Perez, summarize schedule, People part our own obviously, continue seeing inside hours centralized recommendations of better. our buy in XXX,XXX develop on continued the AI engineering we maps. the impressive $X worked and as destination Under developers momentum AI growth and Chief employees our AI-generated employee transform in built Resort, and One of It's Cloud. AI our an enterprises. One already Juan we're coding customers, deals Data providing Siemens. AI-powered than the marketplace, of Scardino Langley employee an and across our XX% meetings example adopt right and important for And digital launch included we've Siemens just business. Salesforce. of products Information into a did quarter. demand. they just helping a answered to to to million product single now buying integrated said, see Credit for them Salesforce accelerate Bay with our Slack, and our Siemens Chief plan organization, of commerce, Turtle the clouds are accelerator self-service save Data leadership Einstein continue Union all our AI it drive product each for as for make not Einstein tools. us as through AI we answer X all experience And the at ordering, transformation, obviously life to into and of business month simplify Einstein queries nearly easily our wins has In is and questions. Einstein Natalie Officer, innovations These Officer, use and efficiencies our our us our in the right

XX included which was in momentum great of in deals quarter. Slack, have We the half with again top nearly our

using launch Slack. every We in on working recap, AI have efficiently. with help February, turnaround channel, in faster. from Slack And customers and launched every the seen right time great an amazing loans and summarized close a have personally traction and with also and million with its that the external innovation also in [indiscernible] to experienced happening more Slack Slack to AI provides day since search February. Rocket I leveraged faster partners Mortgage quarter effectively Slack and speed save customers in They've collaborate channels with XX% employees their messages that within partners they've added up its over our summaries been we've this in Slack. personalized it product, XX caught customers conversations our

great EMEA, Resorts we solid at single Cloud, great XX Lat better partnership, DPSP and top increased XX creating another Data leader. our in hotels Atlassian proactively of Financial days advance in Lewis and Paychex able in be IHG a customer. the view point the The data, renewals. And city can was Hitachi. Industries Paychex, the was AI Grupo Einstein own and at the service any renewals, insights MyLAXXX quarter. options million using saw Service manage request cloud One during sales each us great their of example proactively will cloud in which Bank digital insurance the and to to improving Islands quarter. Prince and front, with in leveraging public and is And unify worldwide in industry quarter, sector, service, had facing quarter services an By and deals XX Seibu or our a of reach XX, half at were agents [indiscernible] paycheck Salesforce business, renewal with opportunities Salesforce international surface chose driving integrate of building assistance and Am, will one growth Japan solutions able touch a the We customer, lever rate Cloud self-service out residents to and the city's use its system. Hotels Angeles for wins modernize the Los and of included how constituent its city into city HR A services, we and John our wins particular In residents of and giving in MyLAXXX and using to wins APAC, strength and reliability On wins responsiveness. X had more Philippines other government means and modernize

also especially available marketplace. move Amazon deployments deep partnership beyond in through and to off by a their of been be forward options. In growth team, excited AWS Our amazing as possible Amy. with QX employees, with now into Joint closing, has products on -- hard acknowledging partners experiences we trailblazers. And and a success about as faster the pass are echo with will growth to Salesforce budgeting I to Marc I'm ecosystem the us. that, able want our continued I expedite for customers, flexible continues to lever partner billing buying work and it for now made driver the customers and our our

work. quarter very our proud of and I Great. dedication of continued across the continued business. Thanks, their for hard Brian. of another all QX employees represents discipline transformation am and

the go let's straight Now results. to

and year-over-year and currency. revenue in billion, For support our and pressures end the buying grew continued the was up result professional range constant to XX% lower due constant was XX% nominal environment. at volatility nominal some first guided on continuing of XX% $X.XX and license in year-over-year the revenue Subscription in The quarter, revenue services, measured currency.

India in XX% tailwind were while included our Americas QX, public XX% timing currency, an in year. From currency. in deals APAC QX, saw tech perspective, one goods XX% of the both call, a sector EMEA last constant leap perspective, performed a new growth the from financial grew parts constrained. We Japan, and services and high and in or point grew MuleSoft this consumer related mentioned in constrained. From U.S. on business to industry and grew and QX revenue from and a geographic Tableau benefit LATAM EMEA well, or license the constant revenue more retail while strong and XX%, of X% in and were As Canada,

our that points these small line offerings Pro quarters. operating with for AI drive continues use basis Starter to also and pleased QX, are attrition with profitable strong Starter's in flow was again I'm medium XX% launched And another year-over-year. Cash new our year-over-year. XX% and quarter up flow operating year, ended flow from Our margin billion, our QX at building around recent revenue Since and which non-GAAP XX.X%, to cash simplified added at in billion, benefit to customers and very $X.X cash recently cash our up upgrade businesses, Unlimited last solutions Suite XXX we've of up momentum. In we X%, modestly trajectory finished strong was Pro year-over-year. additions. QX are Suite, even logos did free payments. ready to $X.XX cash launched new tax generation. QX to seen products. flow growth the X,XXX timing built Enterprise the

than have generated X flow we cash cash tripled this we put in ago. to more just context, Now performance the years

under $XX.X in future represents up Current which XX% at remaining all to CRPO, performance obligation, XX% $XX.X performance contract. ended nominal. obligation, We up QX remaining at Turning year-over-year billion, ended revenue or RPO, year-over-year. billion,

by more results currency. Now $XXX XX% constant core primarily resilience in headwind, products. was million year-over-year this CRPO FX growth in our which growth includes a in driven than

altogether than moderated share did our out our were a ever returned mentioned, bookings. On the declaring per continue capital total to billion. However, $XX This the experience return to billion reflected we quarterly to $X.X We our brings committed which is return $X.XX our to return and next more behavior, measured in as capital subject and we cash quarterly month dividend total in proud QX, incredibly return, repurchases than buying $XXX of approval. we Brian QX programs of inception the in million. anticipate pay first of And of continued more remain form Board to share since dividends. dividend capital for

with let's fiscal turn full 'XX. guidance, items to starting Now few year A note. to

that a continues on fiscal On conditions our the First, continue $XXX we basis to FX about throughout revenue XX impact. we QX the points environment, in guidance saw FX, buying year-over-year headwind are our year. million incorporate assuming a or

our headwind deal to continue projects. or also to customers delaying with and a expect services slowing compression be to business We revenue professional

These to see strong continue from we're also our and demand industries and seeing cloud also we included changes, and benefits for in adoption. However, strong adoption. seeing packaging pricing guide. multi-cloud data are recent We're factors

the we our are now maintaining range revenue year-over-year. As support at to billion a expect attrition growth to in $XX.X expect X% And billion, consistent full result, on we be year-over-year $XX of for to subscription slightly guidance X% of year. to revenue, We currency. X% XX% growth between above constant remain and generally approximately

reminder, invoice a Slack which the we create modest to in fiscal we a starting include metric, headwind. As expect in 'XX,

to last voluntary our Now turning XXX non-GAAP investments increase above the notably employee 'XX now to lower following and profitability margins, increase operating a a attrition and expect The in in to targeted core as result X% point fiscal is year. QX of recent intentional be prior XX.X%, On expected we modest representing of years. businesses. Stock-based This our year data year-over-year, flow. improvement incorporates primarily opportunities, significant from AI, just a percent of margin growth basis revenue. continue than cash in is compensation guidance

basis of year-over-year. XXX guidance to a approximately result, XX%, operating points improvement 'XX, fiscal expected As for year GAAP margin be is representing

year to $X.XX. to to GAAP expect diluted fiscal expected is EPS $X.XX. $X.XX of $X.XX EPS Non-GAAP diluted 'XX We be

be delivering tax approximately margin year our of of to to fiscal flow, expect inclusive As growth a to we cash and continue XX%, expansion, continued payment XX% world-class cash are we 'XX operating headwinds. result flow cash

slightly for revenue. CapEx the fiscal to in X% of flow approximately cash the of to XX% XX% expect results year free be This continue year. growth also fiscal for below to We

revenue, Now in to X% to X% XX% we guidance in $XXX year-over-year constant services. year-over-year nominal constant growth. This for headwinds $X.X QX. approximately in resulting in including X% X% a is expected nominal and includes $X.XX billion growth expect to currency. CRPO currency be for FX to ongoing On million from billion, up QX headwind, professional

strategic QX, we want of non-GAAP $X.XX For I EPS expect $X.XX GAAP investments and $X.XX company's continued of continued of disciplined of $X.XX. In to our employees thank productivity emphasize gains I EPS to drive am growth our strong for margin the proud want scale. at expansion commitment to to and to I shareholders and support. cash And closing, incredibly to flow course, and that, their

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

When everyone, the thanks, and Q&A, that that, each participant with to ask first question. we question. go one Amy, we Rob, And limit Thanks, to themselves take for will joining. we

Instructions] the [Operator comes line first Weiss question from Our of from Stanley. Keith Morgan

in you not Excellent. the excited indicator. expectations But in But your the forward the and full for guys look drivers growth, you're a we the are about did what And and come all of revenue year at guidance. all that as the detail appreciate growth sort business. on down below taking quarter I CRPO

go-forward and beat guide on fiscal that get and we ensure can raise guys it hoping take Like quarters us why help more that table could get original conservative why still on a not feel 'XX why and year basis? I risk on that's appropriate. down comfortable to leading not and make back you So comfortable the is it was you

Great. for Keith, question. that thanks the take one. I'll

that time, saying we will in, by there are have guided. we to start guidance. based our within consider believe seeing be to factors we continue range that me many we the we're all on And at Let what this without

act, a very Brian years point see as possible at this measured to more projects. Now see where out, really the X question to the this we you exception It's also QX we about called of and see are full customers any no that bookings. is continuing with our that guide consistent There's that. [indiscernible] stronger and for can are of last QX shorter a balancing more did pressure looking duration behavior. buying continues environment really on numbers. see just impact And for as been

However, We're adoption. have demand seeing we our demand around are are this tend remains strong. that our healthy very businesses, out pricing industry and We good should We're multi-cloud rolled changes Customers that attrition products, see rate they'll in our continue out also is projects. I to we continuing past really packaging over seeing point continue to that to by on and we adoption the benefits and rely the -- healthy. run from to that. on year. seeing remains that balanced their very do Salesforce

step So of confident a back guidance when will I take our we be feel and year. We that really do holistic view the range. full within

numbers obviously, this our that quarters a on incredible like some -- to we're I focus quarter quarter exactly says, And add, like few continue were beyond we've to ago. some I'd Amy really financials. this imagination transformation that seen just delivering the with

product, and able we've artificial see heart forward. of that's just data that used it's this these be data at to already transformation is the productivity or to front deliver data in intelligence our -- the growth optimism our It's interacting used intelligence. to AI a well, that that's of at in And the in on. whether data we the a how growth the all of deals, that it's more software. of is not And included what it incredible customer of cloud Amy of report managing next available. office our level customers all of enterprises going never quarter the they've Gen customers and to what see XXX huge these we profitability metadata of of a we software. generate every point by premise AI and what's second knows million-plus clouds. It's customers. of up But and where going this know this the And for just going these capability thing AI That's see use period a single the from this one made we XX% value cases data and Salesforce this McKinsey. X,XXX been is, goal call is Another built for our is to that our an than technology. data incredible driver just XX% growth sets leader customers a seen really and of delivery with before. And models, for of is enterprises, to I with short be again, our us is our as growth our in also it's that's office. and transformation $X the about as this continued new in to transformation business. We our a incredible we've of everybody saw mentioned, we deliver really we're transformations. It's it's we transformation deliver transformation new of but capability level we're many for quarter the cloud. also And the consumers of for this cool connected for enterprises, algorithms, level happening look row. When of we've already front fundamental it second But know incredible of data petabytes incredible cloud huge said, the seen cloud of for quarter level our a metadata that That

new aspect it's this better with So Cloud, our better, Cloud every Marketing Cloud or Commerce technology. is making better, Salesforce Service Sales incredible our of now our Cloud

key of up year-over-year. was X driving trillion is, X into Cloud mentioned, over customer quadrillion up part I up XXX% that XX% XX% quarter, and and ingested first Data the activations in processed. year-over-year That's it records were Another year-over-year engagement, were records X trillion as

our we've incredible IBM, this a level data Microsoft data year. intelligence. that you artificial give month, Copy really with Partner going -- and all sources. Look, preparing to capability things Amazon, X means next last And gone the with Zero All data with on through transformation is are in them of Databricks, in our these One this financial the cloud company. focused to capable for capability our created that that we all Snowflake amazing federates that's we of that customers last we're Google, Network of

of positioned to of transformation think is company that which are Salesforce. incredible this delivering going is kind want well also be metrics for and I based more to intelligence, to is the stakeholders one any intelligence on artificial data. don't our going second artificial in The the future

Brad line of from America. Bank comes of next from question Our the Sills

this the commentary benefit the surprise which of macro. now. tough I bit mentioned are situation impact right where just on if that on that I the impact changes? term? also is, certainly that's just Salesforce from little a from articulate over the could big some impact group. seeing sales a going across changes, given shouldn't be that. all short-term on We're kind Is go-to-market appreciate at wonder here the I could the the some it's What Brian, those you guess, you productivity perhaps longer

intended actually want what The for And that time We going thanks scale exactly a the most first you're our ensure our around changes aligned sure Brad, we those line multi-cloud our support our drivers them new customers are changes can can across obvious make do exactly go-to-market make a out that to portfolio. you know we to are entire get support absolutely changes question. customer buyer product for typically right. our make we're strategy Yes, to future, start be to These that really the in to strategy right. quarter. behind to the the forward to year. support we when productivity It's

aligned ensure were and are behind we that of that some we exactly in changes reason. strategy How ensure we QX, And go the that we to made QX. faster QX do for can that

changes The right. are from expect to forward. term, impactful productivity we absolutely in them and you're gains while short see going QX So

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

like where perspective, looked of geographic weaker. little Europe a most saw a it across was pronounced consistent weakness that's geographic if EMEA? I'm curious regions? you pretty Or the from was this Just the in

very accelerated was the pockets buying -- weaker Japan world performance feeling in that EMEA a are quarter, of around was frankly, in strong. us our the pronouncedly Canada really the some felt the other business Americas. outstanding Question our region most the were yes, for also in quarter. quarter, from really Japan But measured I actually strong the environment mentioned business. there in it

I quarters. last areas industry to which obviously, buying several impact, the these going a where businesses are going you're business. of transactional the think exposure environment. over measure of those So other the to business, all the feel Americas, on the know tough some SMB in technology, areas, the more in big feel we and are has the the been to headwinds

sort on of impacts feeling environments. the EMEA spot the So America of and measured

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

they're what the But just all for around Brian. platform them over companies. for think that's any next of impacting up just companies perhaps environment, your holding view, of measured what was to their is an in. of you crowding spend of meaning X software gear enterprise about weigh shift, or buying XX might it's I sort is months, all of other next wondering this could when going with Marc pace to there software curious, starting kind AI you think if of about when on or spending sort Maybe in this we you these on to the be sort normal I uncertainty know question, all back ongoing effect

fill Well, let are, we turn swing to my in you over it and exactly where Brian to I'm me the going at give to detail. then

it when scale exactly, I Salesforce doubled at the look think how from back my That's We've $XX company years, billion you our XXXX, billion. look mind. almost $XX at as the size now. in X the in I ago, approximately at we're years that half entered over X to last pandemic about

the in saw fill and can time, pandemic. in an the in incredible surge environment, the over buying demand and especially during of period You environment the numbers. And sales that we exact

saw companies in massive reality, it, time, was so we integrate actually software ingest we entered of it, to that who it's much it, post-pandemic a amount mean, in. had just put update look acquired rationalize software I As that the install it. it,

post-pandemic adjusted company kind And so of every of has environment. for software this during end enterprise

we any that I told or ago. into in capability higher India like automated which implementation, ways. When or years seeing layering these top that did in forecast of of you on new of driver million that where all a augmentation, we integration the X they're different basically this like stories or report we're Air years, the what of of story to are company the at deliver these their we're when in top capability, when we to profitability, before, X financial when but in years told saw sold XX these delivered for relationships, weren't these that of were and whether that you to of agents, delivering is of metrics they've the that companies. policyholders, is the take is and much especially to we the ago. And That's we just kind we've for capability, AI, saw, on employee the FedEx better the said like be I quarter, Farms of or capabilities installation able margins, call, AI, thousands they're able these you companies all FedEx, these kind companies, last executives when talk it but level So as to in or we a and we an a customer implementations. and growth State companies, deliver look you Paychex take our that at incredible platforms about X has what not able huge future for it's of look you the same last thing at the XX deals CrowdStrike only saying the days,

that permanent most you data eventually delivering this that this profitability going so intelligence as that own our this going that information. But for artificial way whole where fuel is and doing they're Not data the making, petabytes quickly industry company, know, not their They -- will capability are is key future Brian, is are that and company our in even as point this trying to be is you. cloud, -- and So Salesforce fungible productivity. And the our we've rapidly expiring to -- I I'll they that go. over Why customer is was for whatever, cloud been here gold forward. But customers is all moves we this I continuing key we've and to as model, things or it apps and as because this in second and important? critical the these we've for going of our customers data. the and why especially keep aspect and take and to Because to our marketing, re-architected point just foundation the are thing quite earlier, say that whole turn think of and deliver is touch consume next I'll our that I as think our data. leverage capabilities don't our their piece every the as that technology which means positioned our is is, capability automate all of every a important forward, data is to the we well all have in point. core it's to rebuilt and obviously our have enterprises. And customers. for of capability ability This their interface, able XXX able to not of said fund The expire the Salesforce capability is that to and the is user may it growth into now data they the that, just have capability, of make

getting creating the -- that Thanks, we're demand right come our Mark now in that And of really absolutely think AI wanting really in earlier, of of bring and the from our we're performance leverage on out growth pipelines Data those do in with feeling together solid flow order as Yes. work gen. to capabilities. I we're seeing Mark. customers precursor seeing a Customers that and can capabilities, the they benefits many are I so front true. now. things data will leveraging right estate we're customers said GenAI the from our pipe all data their to and XX% Cloud there, sources, and will office AI

a many our actually it's step process for customers. think I of So

the drive to then really data productivity that in and AI layer let's we gains Let's the in order get expect. our

we're in now, right market really that's the seeing so And what Kirk.

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

Maybe I'll switch subjects.

comment concern whether was your I on those at M&A. to could to around reports on been shareholder it that, there in So think Marc change but reports, can't March and if Amy, comment in April not base there framework, be helpful. and I M&A you some might your wondering any expecting media know related has you all,

extremely product. we've is love talk lot revenue Yes. a I marketing with extremely acquired, of growth our our has multi-hundred inorganic No, I'd innovation at history today the innovation. everyone, that, of seen like Salesforce important. Organic our that inorganic impressed whether revenue or also platform that it's integration we level. and a of the innovation, But Cloud, with I a it's think million sure, to commerce mean, long about platform I'm our multibillion-dollar and their points, platform of that level and touch dollar customer innovation them at Data are many products

companies And successfully smaller single actually those most that and that of companies the today put and customers our in to quite redeploying of data into single power integrated fabric one a of know of to software all the them we products much together. largest, levels. And of we're at and re-architecting acquired mentioned I've important provide the course, all Some artificial how future of every market almost intelligence. story we are Salesforce's you

of combined, looking the that we Now level all when of what is next innovation. look we at are at always

are going at looking And not the we're and away that products going also don't we walk totally dilutive that to going customers continue that quick in looking acquisition, But But we be products from be make at that not to you, we're with so right -- it's will at. is or metrics. And to sure to at that trust accretive, has committed our confident large-scale company it the looking we're we've that is organically. to whatever a look organically. we're we're it we have yes, as if to to things

have framework. that So we -- operated inside

shy amazing to as you Starbucks companies. is also financial than we XXX that cautious. And also has adjust Sales before deeply is company of mean I our part we this are margin that in Salesforce, framework. mean world. which how the most companies it's platform away at and the pretty as We platform. to framework, can our continue let new those eye with for to to to the flow going acquired like outside a into SFA within acquire through in the a amazing capability. But you that margin We great new amazing and going cash we've this only Spiff, that software Spiff, we're our new amazing you we've gives number look into attributes now of of to We're need framework. Generative going level. which this it's we if me cash the gone artificial our now how it Data amazing that, see that's seen It's keep to to M&A Customer opportunities. like we through capabilities we're our one ever -- incredible deliver Coke deliver Cloud. And like been from to flow so than these And of not have got know framework SFA the don't rarely continue intelligence has automation numbers to companies step Salesforce we're at it and flow M&A SFA we AI companies platform, look, that any numbers see, level as what of are our continue M&A have consumer at these just capabilities it's Salesforce slightly of M&A couple able acquired through. But know, metrics know the to of with any compensation deliver continue SFA been. you continue and That framework, these delivered next with number an the we with if at -- called capabilities and and I go to area. But to that's I particular have forward, reiterate customers that maybe was higher successful be platform extremely quarter and because we automate addition, reason cash #X I incredible, Amy what that that forward, company And level. on an pretty incredible built built through inorganic example. has but epic look our think that for And also it's growth in platform we've we're and it's industry, this that M&A and to more in have go better lot all the integrated has of Cloud, think going this

let's talk So Amy, that. about

Marc. Great. Thanks,

our back me little really to talk it's about allocation And bit strategy a very capital up Let simple. it overall.

to continue cash free we scale. to our We margin are as expand flow going

We in are innovation. invest going to

going both that that matches cash Marc if organic our program. our through be principles and and it to it dividend said, we're As our And our is inorganic, we're to and can return share repurchase program goals. and shareholders, doing now

best-in-class talk it's line part outlining framework to balance doing and I that brought cash share in to about our am last that into per and for when been bring sheet, perspective, Now capital to confident meantime, to we're need got to sure we by future. when confident we up, the of this most time an are trying time our But end on. In together, a per focused important day, really be very the opportunity. we'll accretion. by on cash of strategy on prioritize together, the that's element. be flow by At fit the that focus We're of on goal, comes at delivering have dilution focusing value. our managing M&A our very profitable We're use our And going to flow to strong been the our opportunistic. will a We're about doing right free have that of the single you growth to days. we're always going that's overall. going very share. value as to allocation I very you the free be to asset. what all carefully the shareholder incredible be And long-term few have want the optimize it's our got I'm I'm part past. our inorganic has

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

the question impacted here. a booking was Amy for quarter Maybe this Obviously, on Brian side. and

you the pointed the one about one X of changes factors economy, beginning If sales is out, on you the think the -- year. the the at is

environment coming the from while economy seen? tough the a selling we've Has now. talking On is gotten side, a worse issues about quarter this like what [indiscernible]? for the been more Or -- it it from you've are

half Raimo, in hard were up impacts what quarter in experienced I apart first have in first about the year, to the X outlined we The economy question, thanks in same the we like similar I last of measured that Appreciate FY we set our buying did we in the that first sort that feel changes it. of no some the We it's think, productivity like is QX. question. the as for environment one quarter, it. parse to what ourselves felt the doubt what is for half 'XX. in same felt

have executed retrospect very, We very came as been very team in that and sales strong in that may well quarter. QX environment, solid, we a performance. fourth off hindsight, was a the but In similar very

at people ultimately when up ultimately getting ended some we smaller a when of We we there's QX, really is hard were issue look thought closed in decision couple decisions deals a But more parse we So And anticipated. -- deals got to on but would transactions quarter. first delayed the the happen that we done, in quarter of than them. no compression that these saw apart we actually they many saw as that we coming you things. frequently our saw push up out that of

in those both first So particular But what and to in have them lower can our an that's a of things you really felt quarter, impact it when parse hard quarter. bookings, X apart. combine we

Yes.

metrics. At much on we to and deliver these also that look the also continue the hey, how do this for along important pipeline strong prepare to for is our little first this to It's deliver every higher and inside as which success same ACV just time, multiples quarter And operating look we pipelines. overall this future to our lines, X those just high now level years we're like at of at, growth. with these start much through to We environment, higher When I'll but had really the at we've financial we customer X to start add, look in than continue distribution we how organization delivering strong all, couple been are do company. And color numbers, quarter. having lines. our we narrative to give going Xx. is might inside have And critical it's and of we of I our a the with. overall a pipelines we've where think traditionally managing success really start you in traditionally, at I'd

of ask much quarter, is if much this world pipeline started is, higher evidence as at but pipeline out peers environment. And leaders you me a our pipeline means company, holding message message in how any much Xx. from many that they've to we're deeper the Now heard And at from start distribution well going that our of to better you a or also a that to evaluate leader more before. you're in aggressively is would they the is this in to Xx times than That today. pipeline Brian, the because inspection it our our if at out level. this That ever hey, your start better the

last you of need or that's of is for means industry our that our X all higher our is in have even company leaders into industry The enablement. What attribute XX architectures many our organized works throughout might years, not incredibly second our in level much our when people numbers is like stability. the come very a data data, a very level this going important a level important. And environment. And so third a of of that, as we artificial work of level the of the capability, details high training the how work, companies models and work, to we lot a Generative scale move into frameworks incredibly in about of UIs is of talking that about of how in -- have. explain and we software and capabilities managing when just how kind that this new them area of how training second intelligence, I But and to especially need we're we're how people of AI, talking all know into who level this enablement, how that at to significant key our that Salesforce salespeople, framework go is and it just requires it's that's requiring the many the have regards attribute of or platforms

you're strategy to the execute. to a organization going quarter desire Now about your every year, their and slightly business enter the for when you adjust of of fiscal you writing fiscal be to reflect always how organization shift, the to sales there year, first any year demand their plan, fiscal going thinking is slightly start the

the due able at, in much volatility the to the if disruption over up you ACV will than then end you to tolerate quarter? much, how shift, in if And like. you are quarter you look in have with you too more you Because

better Now a it quarter. fourth may result in

is last the exactly we where too overdelivered. much but example because good we saw, A the quarter, everything quarter, we year, have not in fourth had okay, first achieved we might we disruption, wanted by

that what software that And to of they're when achieved and our level happen is all this it's they of good in has products as key of those this disruption. those enterprise of pipelines, and of that the because enablement have companies, stability, we're things to able need that and of the is the all for them. key major I'm levels making attributes are right now. And talk -- if So having all of Xx companies, I products emphasizing that much to industry managing level them, levels higher in other a in be for course, really of because environment to using And to really stability my of deliver having having balance higher to our peers is well. X these there to part that to level regards success much

Your next question Sachs. from Rangan comes from the line of Goldman Kash

for whole just stack seen all things to right? And is on, going maybe that doing been you're things And is all Maybe it's Tower one computing it's my lightly? the that ensure actually you in bulletproof doing an these causing AI, uncertainty, structural not the to to big from are office looking that or company Mark maybe rates, it's architectural on. it's company generative cycle. if that And because something or take from we've And confident architectural structural, it's and the change of preparing Mark, Salesforce drove what structural. absolutely internet there's the you interest the that I are incumbents transitions, thinking bulletproof people the distributed computing. And that ready high cyclical, that's you're this how what last that here. maybe before. is change things that, change an are I'm the regard are in Mark, next upheaval at team, the cyclical just if economic not as seen miss You past. you've the which causing that. that maybe about you're the architecturally you big cycles and tech through typically, have maybe simple as to going to

like comments that. just to I'd make on I couple of -- Well, say will a

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comes Murphy JPMorgan. question from of final Your from Mark the line

any down a comfort I'm ultimately And innovations you mechanisms, you Marc, that how a different and new digest as that's new includes interact that the pause pricing. software there's innovations, And perhaps road and forward a architecture, other that be mentioned consumption to going Copilots pause a that the a process. temporary trying to gain we there's refreshes all little Einstein move it of to pricing sense with thought require transformation happening. the start be the the customers curious, if as bit of may with different they'll

approximately know, And product user approximately These don't year just buy product. Salesforce buying when billion Cloud doing, is a months many year. Plus. revenue our now that per you obviously, that's introduced that a and I a a models, very pricing few different clear Salesforce Data product $X core $X Cloud uses of our with Service you're a we be a think question, product, are billion that it's UE I you products, managing a have billion product key which is consumption a out Well, ago. at It our is kinds $X a path like we is prices. But look We buying pricing. might in SFA over which seen doing or new product. We've called consumption

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joining coming and everyone seeing call forward today, want Great. to the to weeks. We over the thank look everyone we for

for conference you today's concludes Thank participation. call. your This

now You disconnect. may