The paragraph is an introduction to Salesforce's Fourth Quarter and Full Year Fiscal 2025 Results Conference Call. Mike Spencer, Executive Vice President of Finance and Strategy and Investor Relations, begins the call by noting the availability of press releases, SEC filings, and call replays on Salesforce's website. Key executives, including Chair and CEO Marc Benioff and other senior leaders, are present for the call. Spencer highlights that the discussion will cover non-GAAP measures and may include forward-looking statements subject to various risks and uncertainties outlined in their SEC filings. Marc Benioff then expresses excitement about the call, noting the strong performance in the recent quarter.

The paragraph discusses a company's impressive financial performance and growth over the past year, highlighting significant achievements such as surpassing $60 billion in remaining performance obligation (RPO) and achieving the highest cash flow in its history. The company exceeded its cash flow guidance, delivering $13.1 billion last quarter, and is projecting $14.5 billion for the next year. Key drivers of this success include their new major products, Data Cloud and Agentforce, which are positioned as multibillion-dollar AI product lines. The paragraph emphasizes strong year-over-year growth, particularly with Agentforce and anticipates continued success into fiscal year 2026.

The paragraph discusses the rapid growth and transformative potential of the digital labor revolution, highlighting its significant market opportunity, estimated between a few trillion to 12 trillion dollars. It emphasizes the superiority of a unified platform, such as Agentforce, which integrates Customer 360 apps, a Data Cloud, and an agentic platform into a single piece of code. This unified approach enhances security and functionality, leading to remarkable success for customers. Within 90 days of its launch, Agentforce has gained 3,000 paying customers experiencing significant productivity, efficiency, and cost savings.

The paragraph highlights the advanced capabilities and success of Agentforce, emphasizing its integration, simplicity, intelligence, and power that sets it apart from competitors. Clients like Equinox, OpenTable, and Jacuzzi utilize the service, showcasing its scalability. Agentforce's digital labor is efficiently handling numerous customer inquiries, allowing employees to focus on complex tasks. The vision is for every customer to become an "Agentforce customer." The company achieved a remarkable $10 billion in revenue for fiscal year 2025, marking its first $10 billion quarter with an 8% year-over-year increase, closing over 400 deals each worth more than a million dollars. The success includes notable contributions from Data and AI, with Data Cloud playing a central role.

The paragraph details Salesforce's progress with its Data Cloud platform, emphasizing a major growth in records to over 50 trillion, with a significant portion sourced externally through partnerships. Salesforce is leveraging AI to enhance their services, relying on extensive infrastructure investments by partners like Amazon, Alibaba, and Google to keep costs down. The company has achieved impressive financial results for the year, including $37.9 billion in revenue, a 28% increase in operating cash flow, and a non-GAAP operating margin of 33%, surpassing previous guidance expectations.

The paragraph highlights a significant milestone achieved with over 60 billion in RPO, indicating strong customer trust and investment in the company's digital labor vision, which integrates apps, data, and agents. The company projects a 9% year-over-year increase in subscription support revenue and aims for a 34% non-GAAP operating margin for fiscal year '26. It has also expanded its operating margin significantly over the past two years. The success and deployment of their product, Agentforce, are illustrated through a partnership example with Lennar, a major home builder, who has found multiple use cases and significant financial opportunities with the product.

The paragraph discusses the innovative strategies of companies like Lennar and Pandora. Lennar, a home builder, utilizes various digital tools and platforms to enhance its services and sales, including mortgages and insurance. Pandora, a jewelry company present in 100 countries with 37,000 employees, is recognized for its sustainability and aims to enhance its workforce with digital solutions. Both companies leverage Agentforce and various digital platforms like Commerce Cloud and Service Cloud to integrate their operations and improve customer experiences.

The paragraph highlights two significant developments: first, the implementation of Agentforce by various companies to enhance service delivery, mentioning a plan to handle 30% to 60% of service cases with this technology. It praises Alex's vision and mentions Pfizer's commitment to fully integrating with the Life Sciences Cloud, enhancing their clinical operations and customer interactions. The paragraph also discusses the potential of this technology in the pharmaceutical and medtech industries, emphasizing the role of sales agents. Additionally, it briefly mentions Singapore Air's ambition to further improve its already excellent service using agents, showcasing a wide adoption of these innovative cloud solutions.

The paragraph discusses Salesforce's collaboration with Singapore Air and highlights the company's distinguishing features compared to other agent technology vendors. It emphasizes Salesforce's genuine capabilities, mentioning notable customers like Equinox and Remarkable. The paragraph also promotes upcoming AI innovations and invites readers to the TrailheadDX event in San Francisco on March 5th and 6th, where they will showcase a new product, Tableau Next, integrated with Agentforce on Data Cloud, which promises to be impressive.

The paragraph emphasizes the impressive features of Tableau Next and other products like the new versions of Slack, Sales Cloud, and more, generating excitement for their release. It also marks a transitional moment for the management team, as long-time members Brian and Amy are leaving after 25 and 11 years respectively. The speaker expresses gratitude for their contributions, invites them back anytime, and acknowledges Amy's future plans in the NGO sector. Finally, Brian expresses his appreciation in response to the farewell.

The paragraph highlights the success and impact of Agentforce, a platform that has driven significant productivity, growth, and efficiency for companies worldwide. Over 25 years, the company has grown remarkably, with Agentforce setting new industry standards by integrating seamlessly with the company's Customer 360 apps and Data Cloud. OpenTable's quick improvement in handling web queries exemplifies the platform's effectiveness. Studies show Agentforce provides faster ROI and greater accuracy compared to DIY approaches. Companies like Goodyear are using Agentforce to automate and improve operations, further demonstrating its transformative capabilities. The company itself is implementing Agentforce across various departments, experiencing outstanding results.

Since launching in October, Agentforce has autonomously managed 380,000 service requests with an 84% resolution rate, requiring minimal human intervention. It's accelerated quoting cycles by over 75% and transformed outbound prospecting by engaging over 50 leads daily. Alongside, sales reps are involved in extensive training sessions. The Data Cloud platform is gaining global traction due to its growing intelligence and value, with notable clients like Maserati and CaixaBank enhancing their data infrastructures. Nearly half of the Fortune 100 are both AI and Data Cloud users, with significant Q4 growth in Salesforce's Sales Cloud and Service Cloud, complemented by strong adoption of Agentforce Slack in companies like ZoomInfo.

The paragraph highlights the significance of Slack, Tableau, and MuleSoft in Salesforce's major deals and their roles in enhancing customer operations. Slack, crucial for digital collaboration, was pivotal in over a third of deals exceeding a million dollars. Tableau, integrated with Data Cloud and Agentforce, aids companies in leveraging data insights, while MuleSoft streamlines enterprise integration with AI solutions. Salesforce's Agentforce has driven global, transformative industry solutions, with nearly half of top deals being international. The industry's annual recurring revenue rose to $5.7 billion, supported by specialized skills and a dedicated team of specialists.

The paragraph discusses Salesforce's success with its Agentforce platform, highlighting the significant role of partners in driving its adoption and customer engagement. It notes that partners were involved in a substantial percentage of Agentforce wins and activations, with companies like Accenture and Deloitte leveraging the platform for sales coaching and productivity gains. The Agentforce partner network enables customers to deploy pre-built agents with partners like AWS, Google, IBM, and Workday. The paragraph mentions a new partnership with Google and AWS's role as a growth engine, culminating in impressive financial achievements in Q4. The text concludes with gratitude from the speaker, Brian, to the leadership team and stakeholders as Salesforce enters FY26 in a strong position.

The paragraph discusses the gratitude expressed towards Marc and Brian for their long-term partnership and welcomes Robin as the new Chief Operating and Financial Officer. It highlights fiscal year '25 as a period of significant innovation and change, resulting in strong business performance reflected in Q4 results. The full year revenue was $37.9 billion, up 9% year-over-year, with Subscription and Support revenue showing a similar growth. Despite foreign exchange headwinds, Q4 revenue reached $10 billion, witnessing 9% growth in constant currency. Revenue growth was noted across different regions, with strong performance in Latin America, Japan, and Canada, though some constraints were present in parts of EMEA. Industry-wise, Health and Life Sciences, Communications, and Media did well, whereas Tech and Manufacturing were more stable. The company's multi-cloud strategy continues to drive customer engagement.

The paragraph highlights strong growth and financial performance in the company's recent quarter and fiscal year. Key points include a significant increase in Data Cloud and AI annual recurring revenue, which grew nearly 120% year-over-year to $900 million. The company closed over 3,000 paid Agentforce deals, with customers typically using nearly four cloud services, spanning diverse industries such as technology, manufacturing, financial services, and healthcare. Financial metrics show Q4 revenue attrition slightly above 8%, a non-GAAP operating margin of 33.1%, and a GAAP operating margin of 18.2%. For the full year, non-GAAP and GAAP operating margins improved by 250 and 460 basis points respectively. Q4 operating cash flow was nearly $4 billion, up 17%, and free cash flow was $3.8 billion, also up 17%. The full year's operating cash flow reached a record $13.1 billion, a 28% increase, and fiscal year '25 free cash flow was $12.4 billion, a 31% rise, emphasizing the company's focus on profitable growth.

The paragraph discusses Salesforce's impressive financial performance and future guidance. The company achieved a record $63.4 billion in remaining performance obligations (RPO), indicating strong long-term customer commitments. Their current RPO increased to $30.2 billion, with significant growth driven by Data Cloud, AI, and Slack, despite a foreign exchange headwind. The capital return program led to $7.8 billion in share repurchases and $1.5 billion in dividends in fiscal '25, offsetting stock-based compensation dilution. Since the program began, $21 billion has been returned to shareholders. For fiscal year '26, Salesforce expects revenue growth of 7-8%, with a 9% growth in Subscription and Support revenue, despite a $200 million FX headwind affecting revenue guidance.

In this paragraph, the company outlines its financial expectations for fiscal years 2025 and 2026. It anticipates a drag on growth from its professional services business, reflected in the revenue guidance, while relying more on its partner ecosystem, particularly in Agentforce, where partners were involved in significant portions of wins and activations. Subscription and support revenue is expected to be boosted by Data Cloud and Agentforce, though offset by weaker marketing and commerce segments. Agentforce is anticipated to contribute modestly to fiscal 2026 revenue, with momentum increasing into fiscal 2027. Attrition is expected to remain slightly above 8%. The company is committed to margin expansion, predicting a 34% non-GAAP operating margin in fiscal 2026 and a 21.6% GAAP operating margin, alongside investments in Agentforce and Data Cloud. Stock-based compensation is expected to remain stable as a percentage of revenue.

The paragraph discusses financial expectations and results for the company's fiscal year '26 and Q1. For FY26, GAAP diluted EPS is expected to be $6.95 to $7.03, and non-GAAP diluted EPS is projected at $11.09 to $11.17. The company expects operating cash flow growth of 10% to 11%, with CapEx at 2% of revenue, resulting in free cash flow growth of 9% to 10%. For Q1, the revenue forecast is $9.71 billion to $9.76 billion, a year-over-year increase of 6% to 7% nominally and 7% in constant currency. Q1 GAAP EPS is projected at $1.49 to $1.51, and non-GAAP EPS at $2.53 to $2.55. The paragraph also includes a statement of gratitude from the speaker to employees and shareholders before turning over to a Q&A session.

The paragraph discusses the shift in Salesforce's pricing model, particularly for its Agentforce contracts, moving from a traditional per-user model to a consumption-based model. Keith Weiss asks Marc Benioff about how this change impacts contract sizes and overall revenue. Marc Benioff explains that Salesforce originally used a per-user pricing model but has long included consumption-based pricing for certain products like sandboxes, Commerce Cloud, and Marketing Cloud. He suggests that this new pricing strategy could be beneficial for Salesforce.

The paragraph discusses the integration and pricing strategy for a range of products, including traditional human-oriented applications and newer agent-based services like Agentforce. It highlights a particular transaction with a large telecommunications company, explaining that their $20 million annual contract value (ACV) was a combination of products for human users and agents, with $7 million allocated to Agentforce. The paragraph emphasizes the importance of delivering tailored solutions to meet customer needs, showcasing Salesforce's extensive product integration, including Sales Cloud, Service Cloud, Marketing Cloud, and Agentforce, exemplified by their use internally with numerous transactions.

The paragraph discusses the importance of integrating CRM, data, and agents as key components for companies to drive productivity and efficiency. It emphasizes the need for a data cloud and automation to support human agents. Brian Millham and Marc Benioff highlight their focus on customer success through the ROI of digital labor and the flexibility of future pricing models, including a shift to Universal Credits. The conversation touches on the demand for building agentic layers within companies and the potential benefits of incorporating these elements.

In the paragraph, Brian Millham discusses the strong performance of Salesforce's core CRM technology, highlighting over 10% growth in both Sales and Service Cloud. Marc Benioff mentions the integration of Tableau with Data Cloud, enhancing its capabilities beyond just human use, promising an engaging experience for customers. Kirk Materne from Evercore ISI asks if the development of Agentforce is positively influencing other products. Brian Millham confirms this, noting that customers are finding new ways to use the technology, leading to increased activity and innovation.

In the paragraph, a discussion takes place about Lennar's improved ability to manage leads after hours, which now integrates into their Salesforce automation system, resulting in enhanced performance and a beneficial effect on core technology applications. The conversation shifts to leadership changes within a company, where Marc Benioff expresses excitement about appointing Robin Washington as the new COFO (Chief Operating and Financial Officer). He notes the strategic advantage of combining the roles of Chief Operating Officer and Chief Financial Officer, citing a successful precedent and describing how this new structure is a good fit for the company. Robin Washington shares enthusiasm for joining the management team.

The paragraph discusses recent changes and additions to Salesforce's executive team and their anticipated impact on the company's growth. Marc Benioff highlights the excitement of collaborating with Agentforce and emphasizes their unified platform's potential to enhance customer growth and productivity. He expresses enthusiasm over Miguel Milano's return as Chief Revenue Officer, Srini's expanded role as Chief Engineering and Services Officer, Robin's addition as an executive, and Steve Fisher's promotion to Chief Technology Officer. David Schmaier now serves as Chief Product and Impact Officer. These leadership changes aim to drive sustainable and profitable revenue growth for Salesforce.

The paragraph discusses Marc Benioff's satisfaction with his management team, noting the positive contributions of key team members, including his Chief of Staff, Chief Legal Officer, and others. He expresses excitement for the upcoming fiscal year and acknowledges the departing team members with fondness. In response to a question from Brent Thill about the impact of the federal state on Salesforce, Benioff highlights Salesforce's strong relationship with the U.S. government, their support for various agencies, and a balanced budget's importance. He also notes that even the Department of the Government (DOGE) uses Salesforce products like Slack for communication.

In this paragraph, Marc Benioff discusses the potential efficiency gains from using Agentforce bots and other new tools. He suggests that companies, including federal government agencies, could significantly reduce or slow hiring by incorporating these technologies, leading to growth and efficiency. For Salesforce, with its 75,000 employees and 9,000 support agents, this could mean reallocating staff to other areas like sales and marketing. Benioff also highlights improvements in engineering efficiency due to high-performance coding tools, noting that Salesforce does not plan to hire new engineers that year.

The paragraph discusses a 30% productivity increase in engineering and anticipates significant sales growth due to high demand. The speaker emphasizes the shift towards managing both humans and digital agents in the workforce, which many CEOs are beginning to consider. As human labor remains stagnant globally, the integration of digital labor is seen as a catalyst for productivity and economic growth. The speaker underscores that this is a main focus for their company, aligning with broader economic trends and discussions.

The paragraph discusses a company's strategy to augment its existing products with artificial intelligence, rather than investing in expensive data centers. The goal is to lead the digital labor revolution and become the top provider of digital labor. The company is already the number one AI CRM, which they believe positions them well for this digital labor focus, planned for fiscal year '26. The conversation then shifts to a question from Kash Rangan of Goldman Sachs, who asks how the company's Software as a Service (SaaS) model fits into the move towards agentic technology and whether there is a risk of SaaS becoming outdated.

The paragraph discusses the integration of AI, CRM applications, data, and agents, which are described as a "holy trinity" necessary for success. It emphasizes the achievements of Salesforce in this area, highlighting their delivery of 380,000 customer conversations with an 84% resolution rate in the last 90 days. It contrasts Salesforce's approach with Microsoft's, questioning whether Microsoft effectively integrates humans and agents for customer success. The paragraph asserts the importance of combining technology with human input and highlights the use of Salesforce's own products like Tableau, Sales Cloud, Service Cloud, and Slack to deliver value and serve as a successful example.

The paragraph highlights Salesforce's achievements and leadership in AI and digital labor, boasting over 3,000 paid customers and vast data transactions. It thanks team members for a successful fiscal year '25, welcomes new executives, and expresses optimism about the upcoming fiscal year '26, which is anticipated to be significant for their Agentforce initiative. The conference call concludes with thanks and a sign-off from Michael Spencer and the operator.

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