The operator welcomes participants to Salesforce's fiscal 2025 second quarter results conference call. The call is led by Mike Spencer, Executive Vice President of Finance and Strategy and Investor Relations, and joined by Marc Benioff, Amy Weaver, and Brian Millham. Non-GAAP measures will be discussed and forward-looking statements are cautioned. Marc Benioff expresses excitement for the call and upcoming Dreamforce event, and mentions two transformations discussed on the previous year's call.

Salesforce is undergoing two major transformations - one focusing on financials and the other on AI. The CEO is extremely excited about the company's future and its strong performance in terms of revenue, cash flow, margin, and CRPO. The company is also preparing for Dreamforce, the largest AI event in the world, where they will be showcasing their new product, Agent Force. The CEO even received a text from a top executive suggesting they rename the company to Agentforce due to the excitement surrounding the new product. The CEO is encouraging analysts to attend Dreamforce and offering to provide a culinary chef and entertainment.

The speaker discusses their plan to showcase new Agentforce agents and how they have reimagined enterprise software for the new world of autonomous AI. They also mention their Customer 360 and Data Cloud products, as well as their new focus on building agents for various tasks such as sales and service. The speaker believes that the future is about having an "agent force" in addition to other specialized forces in the workplace.

The author predicts that within a year, all companies will have agent forces that will greatly enhance productivity and generate more revenue. The Agentforce platform makes it easy to build autonomous agents for various tasks, and many customers are already using it successfully. At Dreamforce, there will be examples of large companies, such as OpenTable and ADP, using agents to resolve customer inquiries. The author's main focus is to help customers transition to the agent future.

Salesforce is being benchmarked as the top AI platform and their success is credited to their research, engineering, and product teams. They have achieved high levels of accuracy and reduced hallucinations in their AI, making them the first company to deploy enterprise agents at scale. This, along with their focus on trust, customer success, and innovation, has driven their Q2 results of $9.33 billion in revenue, with a 9% growth in subscription and support revenue. Salesforce has also been ranked as the number one CRM provider by IDC and is now potentially the second largest enterprise software company.

The speaker discusses the company's growth and success in the enterprise software market, surpassing Oracle in Japan and becoming the largest enterprise software company in the world. They attribute their success to multi-cloud deals and operating at a large scale, with 25 trillion Einstein transactions and 250 petabytes of data managed for customers. The company has also seen significant margin growth and cash flow, leading to a raise in their financial guidance for the fiscal year. The speaker expresses pride in the team's hard work and determination in achieving these results.

The author discusses the current popularity of AI among customers and the misconception that they need to build their own models. They emphasize the benefits of using a professional enterprise software like Salesforce for the highest efficacy and automation of their company. The author has met with many customers to explain the transformative power of AI.

The speaker discusses the rapid evolution of technology, specifically chatbots, and the capabilities that have been developed in the last 18 months. They mention the platform they have created which allows customers to easily customize and deploy generative AI use cases without writing a lot of code. This has resulted in immediate ROI and positive feedback from customers. The speaker also shares their personal experience using generative AI and emphasizes the importance of keeping information secure and compliant. They conclude by stating that their new Agentforce platform will make a significant advancement in AI.

The speaker wants the audience to attend Dreamforce to experience the technology firsthand. They believe that Microsoft's AI has disappointed many customers, but their own agents are accurate and autonomous. They compare their agents to Waymo, and believe that they will greatly increase productivity for companies, especially in the healthcare industry where doctors and nurses are overworked. The agents can perform tasks without being prompted and can handle simple tasks, freeing up time for medical professionals.

The use of Agentforce agents in the medical field is expected to be a powerful moment, as they will be able to handle time-consuming tasks and work together with doctors and nurses to drive customer success. The platform is easily scalable and can work around the clock in any language, and thousands of customers are expected to use it by the beginning of the next fiscal year. Early trials with customers like Wiley have seen a double digit increase in customer satisfaction and deflection rate, as well as a 50% increase in case resolution with the first generation of Agentforce. The second generation, already being used by organizations like Royal Bank of Canada and ADP, has a 90% case resolution rate.

Salesforce has recently had great success with their product Agentforce, which is being used by OpenTable to manage their 60,000 restaurants and 160 million diners. This has led to increased productivity and the ability to handle a variety of customer service inquiries. Agentforce is also being expanded to include sales agents, which will help drive growth in the sales and service cloud. In the future, Agentforce will also include industry-specific agents, such as healthcare agents, which have already shown success in resolving patient inquiries. This marks a significant advancement in providing reliable and trusted AI and is transforming Salesforce's capabilities.

Salesforce is expanding their analytics and visualization capabilities with their Agentforce platform, which is made possible by their Data Cloud. The Data Cloud is the foundation for their AI transformation and is the fastest growing product in their history. In Q2, the number of paid Data Cloud customers and consumption grew significantly. Salesforce is committed to helping customers connect with their customers in a new way by bringing together apps, data, and agents.

The speaker discusses the three levels of their platform and how they have integrated all their acquisitions, core modules, Data Cloud, and agents into one unified platform. They emphasize the importance of using a complete integrated platform for building agents, and share a story about a customer who was impressed with their platform. They also encourage everyone to attend Dreamforce and promise to provide a high-quality experience.

The speaker is introducing a new technology that will revolutionize enterprises and thanking Amy Weaver for her 11 years of leadership and financial transformation at Salesforce. Weaver will be stepping down as CFO at the end of the fiscal year and staying until May to help onboard the new CFO. The speaker praises Weaver's work and mentions that she was originally hired as General Counsel but was able to successfully transition to CFO.

In this paragraph, Marc Benioff discusses the hiring of a new CFO for the company, with the assistance of Heidrick & Struggles and Jeff Sanders. He praises current CFO Amy Weaver for exceeding expectations and leading the company through the pandemic. He encourages interested candidates to contact Jeff and highlights the benefits of the job. Brian Millham also praises Amy and expresses gratitude for her continued leadership and partnership.

The speaker thanks the team for their strong execution and highlights the company's success in their core growth areas, such as multi-cloud deals and international expansion. They also discuss the positive feedback received from pilot customers for their new Agentforce platform, which integrates their core metadata framework and AI capabilities. The company has seen a significant increase in new bookings for AI products and has signed deals with major brands like Alliant, Bombardier, and CMA CGM. These companies are using AI to improve sales processes and increase productivity, and the speaker acknowledges the challenges customers face in keeping up with rapidly advancing AI technologies.

Salesforce is helping its customers at different stages of their AI journey by launching a new team of technical experts called Salesforce CTOs. They are also using AI internally with great success and plan to deploy Agentforce agents soon. Data Cloud is also a strategic tool for customers, with examples of American Family Insurance and The Adecco Group using it to consolidate data and gain a unified view of their customers. This allows employees to access key information and improve job fulfillment and cost to serve.

In the second quarter, Salesforce has seen a strong demand for its services from CEOs, as companies shift towards becoming AI enterprises. This has led to a significant number of multi-cloud deals, with nearly 80% of new business being driven by such deals. One example of this is Wyndham Hotel and Resorts, which is utilizing Salesforce's Sales Cloud, Service Cloud, Marketing Cloud, Data Cloud, Einstein, and MuleSoft to enhance its guest experience. Other companies such as Citadel, Converge ICT, and GEICO have also seen success with Slack, with 82 of the Fortune 100 using Slack Connect every week. Tableau and MuleSoft have also had successful quarters, with notable wins at organizations such as the Department of Interior, RBC Wealth Management, Chewy, and U.S. Foods.

In the second quarter, five of the top 10 deals for Salesforce came from their international teams, with strong momentum seen in Japan, India, and Canada. The company also had success in their industries business, with over half of the top 100 deals including an industry cloud. At Dreamforce, they will be showcasing their new AI tool kit and their partnership with Workday for Agentforce. The company is focused on diversifying their go-to-market channels and has seen success through the AWS marketplace. The team is looking forward to Dreamforce and continuing to innovate in the CRM space.

The speaker expresses gratitude to Marc for giving them the opportunity to become CFO and thanks the investment community and shareholders for their support. They also highlight the team's strong execution in the second quarter, with revenue exceeding expectations due to core product resilience, license revenue outperformance, and better-than-expected professional services. The Americas, EMEA, and APAC regions all saw growth, with strong new business in Japan, India, and Canada. Certain industries, such as public sector, healthcare, and communications, performed well, while others, like travel and manufacturing, were more constrained.

In the second quarter, the company saw strong growth in subscription support revenue, with double-digit growth in Sales Cloud and Service Cloud. Multi-cloud adoption also contributed to growth, with a significant increase in the number of customers adding multiple clouds. Data Cloud also showed strong momentum, with a 130% increase in paid customers and a doubling of customers spending over $1 million annually. The company also saw a record non-GAAP operating margin and strong cash flow. Remaining Performance Obligation (RPO) increased by 15% year-over-year, and the company returned a record $4.7 billion to shareholders through share repurchases and dividends.

The company expects to offset dilution from stock-based compensation in FY '25 and is maintaining its revenue guidance of $37.7 billion to $38 billion. They anticipate a $100 million FX headwind and deceleration in license revenue growth, but expect 10% growth in subscription and support revenue. The non-GAAP operating margin has been raised to 32.8% and GAAP operating margin is expected to be slightly below 20%. GAAP diluted EPS is projected to be $6.05 to $6.13 and non-GAAP diluted EPS is expected to be $10.03 to $10.11.

The company is focused on driving continued free cash flow expansion and is raising its fiscal year '25 operating cash flow growth to approximately 23% to 25%. They expect revenue and CRPO growth in the third quarter, with GAAP EPS of $1.41 to $1.43 and non-GAAP EPS of $2.42 to $2.44. The company is pleased with their strong execution and thanked their employees and shareholders for their support. The CEO also mentioned the recent Dreamforce event and the company's new Agentforce platform. The CFO, Amy, has transitioned into her new role and the General Counsel, Sabastian, is now sitting at the table with them.

In paragraph 24, the speaker expresses excitement for the company's future CFO and then shares a difficult update: the loss of two beloved Board members, Sandy and Susan. The speaker expresses deep sadness and appreciation for their contributions and then hands the call over to Mike for questions. The first question is about the company's growth, with a focus on the new AI capabilities and other factors contributing to growth such as industry cloud, international expansion, and multi-cloud solutions. The question is directed towards Brian.

The speaker is discussing the growth equation for their company and where they are seeing points of growth. They mention the importance of innovation and selling their apps, Data Cloud, and agents. International regions are also a significant source of growth. The speaker then hands it over to another person to discuss pricing and how it will be affected by agents and productivity gains.

Salesforce CEO Marc Benioff discusses the company's plans for expanding their use of agents, or virtual assistants, in their products. He reveals his personal goal of having a billion agents by the end of fiscal year '26, and explains how they will be priced on a consumption basis. He also compares agents to websites and phone numbers, stating that they will be the new way for customers to connect with businesses. Brian Millham adds that this is an exciting moment for the company.

The speaker expresses gratitude for the listener's understanding of the company's growth strategies and emphasizes the importance of new innovations in improving core apps. They also mention opportunities for growth through channel diversification and managing attrition. The speaker concludes by mentioning the excitement for the future and delivering value to customers. A question is then posed by Kash Rangan.

Marc Benioff expresses his condolences for the family of a former colleague and congratulates Amy, the Chief Legal Officer turned successful CFO. He asks about the potential impact of rate reductions and post-election environment on sales and the role of AI in creating productivity and expanding the use of seats. He shares a story about working with a large healthcare organization and their use of patient relationship management.

Agentforce is a new technology that is helping healthcare organizations by resolving patient inquiries and improving productivity for doctors and nurses. It can communicate with patients about their health concerns, schedule appointments and tests, and provide guidance for next steps. This is a new opportunity for Agentforce to expand its services and help improve patient relationship management for healthcare companies.

The CEO of a large computer hardware company is reconceptualizing their business and wants to be an agent-first organization. The speaker, who has known the CEO for a long time, promises to build them a margin machine and integrate agents into their data and apps seamlessly. This is a new capability in technology and the speaker is excited about the opportunity and their team's execution.

Salesforce CEO Marc Benioff discusses the success of their new AI platform, Agentforce, which has received high satisfaction scores from customers. Agentforce can be implemented quickly and does not require Data Cloud, but it is encouraged for improved accuracy. The new version of Tableau is also built on Data Cloud and can easily visualize all data from Agentforce, making it an integrated platform for sales, service, and commerce.

The company's vision is to integrate all their products onto one platform and utilize AI technology to provide value to customers of all sizes. They have recently made major changes to their products and are excited to showcase them at Dreamforce. Customers will be able to build and fine-tune AI models within the platform, making it a unique and convenient option for them. The company is focused on an AI-centric approach and customers will not have to do everything themselves.

In this paragraph, Kirk discusses his frustration with customers who believe they need to build and train their own models, and how Microsoft has convinced them to do so. He believes this is not necessary and can be done more efficiently on a platform approach. The company has already proven this with successful deployments for companies like OpenTable and Wyndham. The call then turns to Brent Bill, who asks about Kirk's decision to leave and Brian's thoughts on the Americas region's growth.

Amy Weaver, the CFO of Salesforce, thanks her colleagues for their kind comments and expresses her enjoyment in working with them. She announces her decision to step down after 11 years with the company, including four years as CFO, during which she has made significant progress in increasing operating margin and implementing a buyback program. She believes it is the right time for her to step down and focus on a smooth transition to the next CFO. Brian Millham, the President and Chief Revenue Officer of Americas, responds to a question about market saturation and competition, stating that the Americas market is not saturated and competition is not holding them back.

The speaker discusses the impact of the measured buying environment on their largest business, particularly in the transactional and SMB markets. They refute the idea that their business is saturated and express confidence in their new technology and innovation to turn the business around and achieve double-digit growth. The General Counsel is mentioned as a potential candidate for CFO, and the company is looking for the right person to move their business forward. The call ends with a goodbye from the operator.

This summary was generated with AI and may contain some inaccuracies.