The paragraph is an introduction to Salesforce's Fiscal 2025 Third Quarter Results Conference Call. The operator welcomes participants and explains the format: all lines are muted until the Q&A session. Mike Spencer, Executive Vice President of Finance and Strategy and Investor Relations, then begins the call by acknowledging the attendees and introducing other key participants, including Marc Benioff, Chair and CEO, along with other executives. He mentions that the press release, SEC filings, and a replay of the call are available online. The commentary includes non-GAAP measures, and forward-looking statements that carry risks and assumptions which could impact actual results. Finally, Marc Benioff expresses his appreciation and excitement for the call and wishes everyone a happy Thanksgiving.

The paragraph highlights Salesforce's strong financial performance in the recent quarter, emphasizing that their excitement goes beyond the numbers to their technological advancements. They are undergoing a significant transformation, marked by the rise of "digital labor," a new and expansive market compared to traditional data management. Salesforce is positioning itself as a leader in this market with its autonomous AI agents, which are revolutionizing business operations. The introduction of Salesforce's Agentforce indicates that they are not just envisioning a future shaped by digital labor but are actively delivering it.

The paragraph describes the launch and impact of Agentforce, a new Salesforce technology that enhances productivity by integrating AI agents into the digital workforce. These agents work alongside humans to improve efficiency, resolve issues, and manage customer interactions at scale. Salesforce envisions this as the start of a broader digital transformation, potentially leading to AI manifesting as robots. The technology allows human workers to focus on strategic and relational initiatives, marking a shift in how productivity is achieved and showcasing an exciting evolution for Salesforce and society.

The paragraph discusses the transformative impact of Agentforce, a new digital labor technology that works alongside humans and robots to enhance business efficiency across industries like healthcare and hospitality. It highlights the shift from traditional labor to digital solutions amidst global workforce stagnation. Customers are experiencing significant benefits, such as improved service, lead processing, and marketing optimization. The technology gained substantial interest at Dreamforce in San Francisco, leading to rapid adoption worldwide. Since its release on October 24th, Agentforce has already secured over 200 deals in Q3, indicating strong demand and potential for economic growth without compromising scale and efficiency.

The paragraph discusses Salesforce's Agentforce, a digital labor platform used by major global companies like FedEx, IBM, and Accenture to build and deliver agents. Salesforce emphasizes its leadership in providing this service globally and expresses pride in its teams' efforts to launch it first in the market. They highlight their role as "customer zero," using Agentforce internally and offering it live on their help portal, which manages 60 million sessions and over 2 million support cases annually. Salesforce is also testing a front-end agent for its US website to explore further potential uses.

The paragraph describes the significant impact of technology and human resources on the company, focusing on automating certain areas and expanding critical ones like distribution. The company plans to hire 1,000 to 2,000 more salespeople to capitalize on distribution opportunities. It highlights Agentforce, a digital tool enhancing operational efficiency and intelligence, especially in customer service. Agentforce provides accurate and responsive service by leveraging a vast repository of Salesforce data, including documents and customer-specific data, giving the company a competitive edge.

The paragraph details how Agentforce, a Salesforce AI technology, provides rapid, personalized customer support solutions with notable accuracy and efficiency, which can be integrated into various platforms unlike competitors such as Microsoft's Copilot. Agentforce is expected to significantly reduce Salesforce's internal case volume, offering substantial accuracy, speed, and cost savings to their clients. Vivint, a smart home security provider, is highlighted as an example of a company successfully employing Agentforce to automate customer support, thus addressing high volumes of support calls and reducing service rep turnover.

The paragraph discusses how Vivint plans to use Agentforce to automate various processes like technician scheduling and issue resolution through Salesforce and Slack. It highlights Agentforce's capabilities demonstrated by Adecco, which uses it to handle 300 million job applications annually, streamline resume sorting, and assist candidates in refining their resumes. The paragraph emphasizes Salesforce's significant advantage in AI, with 2 trillion Einstein transactions weekly, and introduces Agentforce's ability to enhance customer interactions by integrating AI agents with human efforts, also mentioning its implementation by the nonprofit College Possible.

The paragraph discusses how College Possible uses Agentforce, a virtual counseling system built on Salesforce, to help students navigate college preparation. In California, there are currently insufficient counselors, with an average of only one per 500 students. College Possible has leveraged existing data and capabilities within Salesforce to create virtual counselors efficiently. By activating Agentforce, College Possible can provide personalized counseling experiences to students based on their data. The paragraph emphasizes the potential for 135,000 customers who use Salesforce to enhance their services across various industries by utilizing this system.

In the paragraph, Salesforce describes its initiative to integrate all its applications and acquisitions into a unified platform, known as "more core." This platform consolidates services like sales, service, marketing, commerce, analytics, and Slack into a single piece of code, including data cloud capabilities for seamless data integration. Salesforce highlights the development of an "agentic layer" that utilizes these investments to form a comprehensive AI system for enterprises, differentiating it from other AI platforms. The company emphasizes the importance of trust and responsibility in managing this advanced technology.

The paragraph discusses Salesforce's commitment to building Agentforce with a focus on accountability, fairness, and transparency. It highlights the challenges and opportunities in an AI-driven economy, emphasizing the need for workforce adaptation as roles shift and efficiency increases. The company sees this as a transformative period, marking the start of unprecedented innovation and change, leading to new industries and a significant expansion of market opportunities. Salesforce believes in leveraging this technological revolution to create a better future, viewing business as a powerful platform for change.

The article discusses the launch of Agentforce 2.0, a digital labor force technology by Salesforce, planned for December 17th in San Francisco. The technology promises significant advancements in accuracy and value, marking a transformative shift in work processes. Brian Millham highlights this as a pivotal moment in his Salesforce career, signifying a revolutionary change in enterprise software. He mentions strong quarterly results due to customer trust in Salesforce's leadership and growth pillars, including Agentforce and Data Cloud, driving efficiency, productivity, and improved customer relationships across industries.

The paragraph discusses the success and adoption of a new technology and business model called Agentforce, which promises to save customers money and enhance workforce capabilities. Companies like Wiley and Heathrow Airport are experiencing significant improvements in issue resolution and customer response times. SharkNinja also adopted Agentforce for round-the-clock support across multiple markets. The company reports strong results, with a significant increase in high-value AI deals and over 2,000 AI deals signed, including notable wins with global partners. To meet growing demand, the company is hiring new account executives and utilizing AI tools to support sales teams. Accenture has implemented Agentforce to optimize its sales operations, aiming for a substantial increase in bid coverage. The paragraph concludes with a positive outlook for Agentforce's future impact on customers and the company itself.

Salesforce is leveraging its new digital labor platform, Agentforce, to enhance customer service and engage prospects on Salesforce.com, automating tasks like lead gathering and qualification. This initiative aims to boost productivity and efficiency, saving time and money for strategic growth. Salesforce emphasizes the importance of unified data, with its Data Cloud used by 25% of the Fortune 100, centralizing systems like Adecco Group's. The platform handles massive data processing, exemplified by Indeed's use of Data Cloud to match job seekers with employers, aiming to improve hiring efficiency and help millions by 2030.

In the recent quarter, IBM selected Data Cloud to improve its global client service with enhanced AI-driven insights. The acquisition of Zoomin aims to harness unstructured data for AI personalization, while acquiring Own Company boosts data security and compliance. Agentforce enhances AI insights across the product portfolio, contributing to significant growth in Sales Cloud and Service Cloud. During Cyber Week, Commerce Cloud facilitated nearly 50 million orders, with Salesforce delivering billions of AI recommendations and marketing messages. Service Cloud handled 3.8 billion cases. Slack continues to grow, with its AI tools saving customers over a million hours, and seeing a 50% increase in annual spend, included in many high-value deals.

Tableau and MuleSoft are key to customer transformations, with recent successes at companies like SiriusXM and 3M. Salesforce's industry clouds, particularly in healthcare, are driving growth, with significant international wins. New channels like the Agentforce partner network and AWS Marketplace are expanding customer engagement. Salesforce's financial performance has been strong, and they're poised to lead in enterprise AI and digital workforce transformation with Agentforce, already showing benefits in customer service. The company is set for continued momentum in the coming quarter.

In the third quarter, Salesforce achieved strong financial outcomes with a revenue of $9.44 billion, marking an 8% year-over-year increase. This growth was driven by resilience in their core cloud services and a 9% rise in subscription and support revenue. The Americas, EMEA, and APAC regions all demonstrated growth, with new business gains in Latin America, Canada, and Australia. Industry sectors like health and life sciences, manufacturing, and automotive showed solid performance, while retail and consumer goods were more balanced. Salesforce's multi-cloud strategy is pivotal, as it leads to higher customer spending and lower attrition, enhancing annual recurring revenue. Their Data Cloud is integral to AI transformations, contributing significantly to large deals, and supports Salesforce's ability to deliver comprehensive customer insights across various business functions.

The paragraph outlines the company's strong Q3 financial performance, highlighting that eight of the top 10 deals involved both Data Cloud and AI, including Agentforce, setting a trend for future transactions. Key financial metrics include a slightly over 8% revenue attrition rate, a 33.1% non-GAAP operating margin, and a notable achievement of a 20% GAAP operating margin. Non-GAAP EPS was $2.41, impacted by a mark-to-market adjustment, but would have been $2.59 without it, surpassing guidance. The company achieved $2 billion in operating cash flow and $1.8 billion in free cash flow, both showing significant year-over-year growth. Remaining performance obligations (RPO) reached $53.1 billion, with current RPO (cRPO) at $26.4 billion, reflecting a 10% year-over-year increase, driven by favorable early renewals and strong bookings performance. Although Agentforce closed over 200 deals in a week, its contribution to cRPO is not yet significant. The company returned $1.6 billion to shareholders through $1.2 billion in share repurchases and $400 million in dividends.

The company is updating its fiscal year 2025 financial guidance. They aim to offset stock-based compensation dilution through their capital return program, which has returned over $20 billion so far. They've increased the lower end of their revenue guidance to $37.8 billion, with the high end at $38 billion, indicating an 8% to 9% growth. Subscription and support revenue is expected to grow by about 10% year-over-year. They anticipate a $100 million FX headwind and expect their professional services business and license revenue growth to be revenue headwinds. Attrition is projected at slightly above 8%. The company has raised its non-GAAP operating margin guidance to 32.9%, reflecting a 240 basis point improvement, driven by investments in Agentforce and Data Cloud. Stock-based compensation remains at 8.4% of revenue. The GAAP operating margin is expected to be just under 20%, a 540 basis point improvement.

The company has provided financial guidance for fiscal year '25, expecting GAAP diluted EPS of $6.15 to $6.20 and non-GAAP diluted EPS of $9.98 to $10.03. They anticipate operating cash flow growth of 24% to 26% and free cash flow growth of 26% to 28%, with CapEx slightly below 2% of revenue. For Q4, revenue is expected to be between $9.9 billion and $10.1 billion, reflecting a 7% to 9% year-over-year increase. cRPO growth for Q4 is projected to be around 9%, factoring in a $100 million FX headwind. GAAP EPS for Q4 is anticipated to be $1.55 to $1.60, with non-GAAP EPS at $2.57 to $2.62. The company remains focused on profitable growth and customer success with Agentforce. During the Q&A, Brent Thill inquires about Agentforce's influence on other product lines, particularly mentioning Data Cloud.

The paragraph discusses Amy's point about seeing collaborations with five major cloud providers in their top 25 deals, highlighting the demand for an integrated suite of products including sales, service, marketing, analytics, data cloud, and Slack. It emphasizes their unique "agent-first" approach, which makes their Sales and Service Clouds stand out. A story is shared about a healthcare customer interested in their marketing solutions and comparing them to Adobe's offerings, stressing the importance of considering the entire platform for integrated capabilities.

The paragraph discusses Salesforce's comprehensive customer platform, which integrates sales, service, marketing, analytics, data cloud, and Slack into one cohesive system that supports all languages and currencies, and can scale for any company size. The platform is agent-first, providing extensive access to data, and is unique in its integration and functionality. The speaker highlights Salesforce's leadership in enterprise AI through Einstein and expresses excitement about the platform's potential to transform the software industry, emphasizing its ability to deliver unprecedented value.

In the article paragraph, Keith Weiss from Morgan Stanley asks about the nature of 200 deals signed for Agentforce, specifically if they are upsells and what uplift is observed. Brian Millham responds, explaining that there is significant traction with Service Cloud customers who see Agentforce as a platform, leading to many add-ons. While initial deals are primarily in the Service Cloud space, there is great potential for expansion into Sales Cloud, Marketing Cloud, Commerce Cloud, and Data Cloud, with Data Cloud included in all Agentforce deals. These 200 deals represent just the beginning of a larger opportunity for Agentforce.

In the paragraph, Raimo Lenschow from Barclays asks about the pricing structure for Agentforce, which is set at $2 per conversation. Brian Millham responds by expressing excitement about the value it offers to customers. Marc Benioff then shares a personal anecdote about rupturing his Achilles during a trip to Fakarava, French Polynesia, and highlights the excellent care he receives from UCSF. He reflects on the costs and staff burnout issues in healthcare, noting the extensive efforts required for his medical care.

The paragraph discusses the strain on doctors at UCSF who are working late into the night due to limited workforce. The speaker suggests using agents or automation to handle administrative tasks to alleviate this burden and reduce costs. They argue that doing so would allow professionals to focus on more strategic tasks, increase productivity, and grow the economy without needing to hire more staff. The hospital is cited as an example of an industry that could benefit from such solutions. The paragraph also touches on Salesforce's pricing model, highlighting its products designed for human use and others for automated agents, emphasizing the cost-effectiveness of automation. Brian Millham adds that customers are aware of their labor costs.

The paragraph discusses the benefits of deploying agents to help manage customer interactions, particularly in pricing discussions. It mentions the use of calculators on the company's website that allow customers to understand cost structures and see the value of the company's offerings. The conversation then shifts to Marc Benioff, who talks about a core initiative they've been working on for a couple of years, which is part of a broader transformation involving both financial and technological changes. Benioff highlights the support and advice received during this transformation and emphasizes the focus on strengthening the organization to meet desired financial goals and expand their distribution network.

The paragraph discusses the company's significant investments in AI and platform integration, emphasizing the creation of More Core. At Dreamforce, they highlighted the integration of commerce and marketing into the core platform, aiming to unify Sales, Service, Marketing, Analytics, Data Cloud, and Slack into a single platform. This integration is crucial for effective AI functionality, as it needs comprehensive access to data and workflows. The goal is to enable seamless operations like commerce, email confirmation, case management, and patient relationship management, adaptable by industry, geography, and currency.

The paragraph discusses Salesforce's new strategic approach called "Foundations," which integrates multi-cloud packaging to potentially increase agent adoption. Marc Benioff describes it as part of a broader initiative, referencing the evolution of their product and platform in real-time, akin to rebuilding an airplane while flying it. Despite challenges, they've successfully revamped their system, and Foundations represents a glimpse of this transformation. It's built on the same code set but offers a different way for customers to utilize Salesforce, aiming to make more functionality accessible to all users.

The paragraph discusses the company's strategy of offering a comprehensive suite of services, including Sales, Service, Marketing, Analytics, Data Cloud, and Slack, bundled under a "Foundations" package to provide customers with a seamless experience and eliminate the need for additional products. It highlights the effort to educate customers about the integrated capabilities and acknowledges that many customers still use these services in isolation. The discussion transitions with Kirk Materne from Evercore ISI asking about the readiness of customers to utilize a feature called Agentforce, emphasizing the process of organizing customer data to maximize the feature's value. He inquires about the typical timeline, suggesting it might take around three to six months, for customers to prepare and implement Agentforce.

Brian Millham discusses the varying timeframes for different customers to integrate their data into Data Cloud, depending on their existing data architecture. Customers with a strong data strategy can integrate quickly, while those with siloed data across divisions might take up to six months. There is high demand for harmonized data to improve AI and customer interactions, creating opportunities for technology and expertise to assist in this process. Michael Spencer wraps up the call with thanks and holiday wishes, and the operator concludes the session.

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