Salesforce, Inc. is a global leader in customer relationship management (CRM) technology, offering a platform that connects companies with their customers through data, AI, and CRM solutions. The company's primary product is the AI-powered Customer 360 platform, which integrates various business functions by unifying customer data across systems, apps, and devices to create a comprehensive view of customers **[0001108524-24-000005_crm-20240131.htm:7]** **[0001193125-24-129470_d26900dpre14a.htm:9]**. Salesforce generates revenue primarily from subscription and support services, as well as professional services and other revenues **[0001108524-24-000005_crm-20240131.htm:72]** **[0001108524-24-000022_crm-20240731.htm:8]** **[0001108524-24-000034_crm-20241031.htm:9]** **[0001108524-24-000009_crm-20240430.htm:7]**.

1. **Subscription and Support Revenues** - Provides access to enterprise cloud computing services and software licenses, recognized over the contract term or at the point in time when the software is made available to the customer.
2. **Professional Services and Other Revenues** - Offers advisory services, project management, implementation services, and training, recognized as services are rendered or over the contract term.

d0679f9f8ffaa3205f3458ed5c1e0c4a05b02f490066fa97722b41c58a91c451

| Metric (USD Millions) | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 |
|-----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Sales**             | 1,970  **[0001108524-24-000002_crm-q4fy24xexhibit991.htm:12]**  | 1,906  **[0001108524-23-000048_crm-20231031.htm:46]**  | 1,895  **[0001108524-23-000040_crm-20230731.htm:18]**  | 1,810  **[0001108524-23-000023_crm-20230430.htm:40]**  | N/A     | N/A     | N/A     | N/A     |
| **Service**           | 2,160  **[0001108524-24-000002_crm-q4fy24xexhibit991.htm:12]**  | 2,074  **[0001108524-23-000048_crm-20231031.htm:46]**  | 2,049  **[0001108524-23-000040_crm-20230731.htm:18]**  | 1,964  **[0001108524-23-000023_crm-20230430.htm:40]**  | N/A     | N/A     | N/A     | N/A     |
| **Platform and Other**| 1,720  **[0001108524-24-000002_crm-q4fy24xexhibit991.htm:12]**  | 1,686  **[0001108524-23-000048_crm-20231031.htm:46]**  | 1,638  **[0001108524-23-000040_crm-20230731.htm:18]**  | 1,567  **[0001108524-23-000023_crm-20230430.htm:40]**  | N/A     | N/A     | N/A     | N/A     |
| **Marketing and Commerce** | 1,270  **[0001108524-24-000002_crm-q4fy24xexhibit991.htm:12]**  | 1,230  **[0001108524-23-000048_crm-20231031.htm:46]**  | 1,238  **[0001108524-23-000040_crm-20230731.htm:18]**  | 1,170  **[0001108524-23-000023_crm-20230430.htm:40]**  | N/A     | N/A     | N/A     | N/A     |
| **Data (including Analytics and Integration)** | 1,630  **[0001108524-24-000002_crm-q4fy24xexhibit991.htm:12]**  | 1,245  **[0001108524-23-000048_crm-20231031.htm:46]**  | 1,186  **[0001108524-23-000040_crm-20230731.htm:18]**  | 1,131  **[0001108524-23-000023_crm-20230430.htm:40]**  | N/A     | N/A     | N/A     | N/A     |
| **Total Subscription and Support Revenues** | 8,750  **[0001108524-24-000002_crm-q4fy24xexhibit991.htm:1]**  | 8,141  **[0001108524-23-000048_crm-20231031.htm:46]**  | 8,006  **[0001108524-23-000040_crm-20230731.htm:18]**  | 7,642  **[0001108524-23-000023_crm-20230430.htm:40]**  | 7,790  **[0001108524-23-000007_crm-q4fy23xexhibit991.htm:1]**  | N/A     | N/A     | N/A     |
| **Professional Services and Other Revenues** | 540  **[0001108524-24-000002_crm-q4fy24xexhibit991.htm:1]**  | N/A     | N/A     | 605  **[0001108524-23-000023_crm-20230430.htm:40]**  | 600  **[0001108524-23-000007_crm-q4fy23xexhibit991.htm:1]**  | N/A     | N/A     | N/A     |
| **Total Revenue**     | 9,290  **[0001108524-24-000002_crm-q4fy24xexhibit991.htm:1]**  | N/A     | N/A     | N/A     | 8,380  **[0001108524-23-000011_crm-20230131.htm:69]**  | N/A     | N/A     | N/A     |

b52b5fe773367ab51602519c7c2f29dd16dfa93a4553ce2e717a3b02fe622a6d

| Metric [Unit: $ Million] | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 |
|--------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Americas                 | **5,361**  **[0001108524-22-000060_crm-20221031.htm:46]** **[0001108524-22-000060_crm-20221031.htm:19]**  | **5,657**  **[0001108524-23-000007_crm-q4fy23xexhibit991.htm:11]**  | **5,482**  **[0001108524-23-000023_crm-20230430.htm:41]**  | **5,769**  **[0001108524-23-000040_crm-20230731.htm:18]**  | **5,862**  **[0001108524-23-000048_crm-20231031.htm:19]** **[0001108524-23-000048_crm-20231031.htm:46]**  | **6,176**  **[0001108524-24-000002_crm-q4fy24xexhibit991.htm:12]**  | **6,062**  **[0001108524-24-000009_crm-20240430.htm:18]** **[0001108524-24-000009_crm-20240430.htm:39]**  | **6,201**  **[0001108524-24-000022_crm-20240731.htm:18]** **[0001108524-24-000022_crm-20240731.htm:43]**  |
| Europe                   | **1,745**  **[0001108524-22-000060_crm-20221031.htm:46]** **[0001108524-22-000060_crm-20221031.htm:19]**  | **1,935**  **[0001108524-23-000007_crm-q4fy23xexhibit991.htm:11]**  | **1,951**  **[0001108524-23-000023_crm-20230430.htm:41]**  | **1,974**  **[0001108524-23-000040_crm-20230731.htm:18]**  | **1,998**  **[0001108524-23-000048_crm-20231031.htm:19]** **[0001108524-23-000048_crm-20231031.htm:46]**  | **2,205**  **[0001108524-24-000002_crm-q4fy24xexhibit991.htm:12]**  | **2,145**  **[0001108524-24-000009_crm-20240430.htm:18]** **[0001108524-24-000009_crm-20240430.htm:39]**  | **2,184**  **[0001108524-24-000022_crm-20240731.htm:18]** **[0001108524-24-000022_crm-20240731.htm:43]**  |
| Asia Pacific             | **731**  **[0001108524-22-000060_crm-20221031.htm:46]** **[0001108524-22-000060_crm-20221031.htm:19]**   | **792**  **[0001108524-23-000007_crm-q4fy23xexhibit991.htm:11]**   | **814**  **[0001108524-23-000023_crm-20230430.htm:41]**   | **860**  **[0001108524-23-000040_crm-20230731.htm:18]**   | **860**  **[0001108524-23-000048_crm-20231031.htm:19]** **[0001108524-23-000048_crm-20231031.htm:46]**   | **906**  **[0001108524-24-000002_crm-q4fy24xexhibit991.htm:12]**   | **926**  **[0001108524-24-000009_crm-20240430.htm:18]** **[0001108524-24-000009_crm-20240430.htm:39]**   | **940**  **[0001108524-24-000022_crm-20240731.htm:18]** **[0001108524-24-000022_crm-20240731.htm:43]**   |
| Total Revenue            | **7,837**  **[0001108524-22-000060_crm-20221031.htm:46]** **[0001108524-22-000060_crm-20221031.htm:19]**  | **8,384**  **[0001108524-23-000007_crm-q4fy23xexhibit991.htm:11]**  | **8,247**  **[0001108524-23-000023_crm-20230430.htm:41]**  | **8,603**  **[0001108524-23-000040_crm-20230731.htm:18]**  | **8,720**  **[0001108524-23-000048_crm-20231031.htm:19]** **[0001108524-23-000048_crm-20231031.htm:46]**  | **9,287**  **[0001108524-24-000002_crm-q4fy24xexhibit991.htm:12]**  | **9,133**  **[0001108524-24-000009_crm-20240430.htm:18]** **[0001108524-24-000009_crm-20240430.htm:39]**  | **9,325**  **[0001108524-24-000022_crm-20240731.htm:18]** **[0001108524-24-000022_crm-20240731.htm:43]**  |

3afe323567075b5e6ad10b7ce76b816f3ec69e0e077c520e5e5d6e7a0bf0ae01

1. Given that some customers take up to six months to harmonize their data for Agentforce integration, how are you addressing these challenges to accelerate adoption and help customers streamline their data preparation?

2. With Agentforce priced at $2 per conversation on a consumption basis, how do you ensure this model remains sustainable and attractive for customers as interactions scale, and how might this impact your revenue predictability and margins?

3. Can you provide more clarity on the new 'Foundations' offering, specifically how it differs from your existing products, and what strategies you're employing to drive its adoption in the coming year?

4. As you heavily focus on deploying Agentforce and AI agents, what potential risks do you foresee related to data privacy, security, and customer trust, and how are you mitigating these concerns to ensure sustained adoption?

5. The 'More Core' initiative aims to integrate all your products into a single platform; what are the primary technical and organizational challenges you're encountering, and how might these impact your timelines and the overall performance of your platform?

b4ce4beb29edeaf5cafca4c5c965dc6ef472154de23dcd04f32db56b27d194a7

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

11d5da6713cdc6556e087fb2ced134ba3f49bfffa52a37762962a93b7920f58c

Subscription and Support

- Sales

- Service

- Platform and Other

- Marketing and Commerce

- Integration and Analytics

- Data

Professional Services and Other

Total Revenue

6f4373b436cab96d9ad3d5cc017684d3f279a05844e857e36c66dd93f4b056a8

**Quarterly guidance for Q4 2025:**
- **Revenue**: $9.9B to $10.1B  **[CRM_3410509_11]**  (no prior guidance)  
- **CRPO Growth**: ~9% year-over-year  **[CRM_3410509_11]**  (no prior guidance)  
- **GAAP EPS**: $1.55 to $1.60  **[CRM_3410509_11]**  (no prior guidance)  
- **Non-GAAP EPS**: $2.57 to $2.62  **[CRM_3410509_11]**  (no prior guidance)

**Annual guidance for FY 2025:**
- **Revenue**: $37.8B to $38.0B  **[CRM_3410509_11]**  (raised from $37.7B to $38.0B  **[CRM_3400056_15]** )  
- **Subscription and Support Revenue**: ~10% year-over-year in constant currency  **[CRM_3410509_11]**  (no change from prior ~10%  **[CRM_3400056_15]** )  
- **Non-GAAP Operating Margin**: 32.9%  **[CRM_3410509_11]**  (raised from 32.8%  **[CRM_3400056_15]** )  
- **GAAP Operating Margin**: Slightly below 20%  **[CRM_3410509_11]**  (no change from prior guidance  **[CRM_3400056_15]** )  
- **GAAP Diluted EPS**: $6.15 to $6.20  **[CRM_3410509_11]**  (raised from $6.05 to $6.13  **[CRM_3400056_15]** )  
- **Non-GAAP Diluted EPS**: $9.98 to $10.03  **[CRM_3410509_11]**  (lowered from $10.03 to $10.11  **[CRM_3400056_15]** )  
- **Operating Cash Flow Growth**: 24% to 26%  **[CRM_3410509_11]**  (raised from 23% to 25%  **[CRM_3400056_15]** )  
- **CapEx**: Slightly below 2% of revenue  **[CRM_3410509_11]**  (no change from prior guidance  **[CRM_3400056_15]** )  
- **Free Cash Flow Growth**: 26% to 28%  **[CRM_3410509_11]**  (raised from 25% to 27%  **[CRM_3400056_15]** )

dc33edc0e5584cc405faa5727d0a5f2ba346231f0ec78791023f7ac68ff28d2d

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

5842ed6a034fabe526337b6dc85f4aeaceaa91e9464ab5e1596c4efda1ef839b

- Vendors of packaged business software, as well as companies offering enterprise apps delivered through on-premises offerings from enterprise software application vendors and cloud computing application service providers, either individually or with others  **[0001108524-24-000005_crm-20240131.htm:15]** .
- Software companies that provide their product or service free of charge as a single product or when bundled with other offerings, or only charge a premium for advanced features and functionality, as well as companies that offer solutions that are sold without a direct sales organization  **[0001108524-24-000005_crm-20240131.htm:15]** .
- Vendors who offer software tailored to specific services, industries or market segments, as opposed to Salesforce's full suite of service offerings, including suppliers of traditional business intelligence and data preparation products, integration software vendors, marketing vendors or e-commerce solutions vendors  **[0001108524-24-000005_crm-20240131.htm:15]** .
- Productivity tool and email providers, unified communications providers and consumer application companies that have entered the business software market  **[0001108524-24-000005_crm-20240131.htm:15]** .
- Traditional platform development environment companies and cloud computing development platform companies who may develop toolsets and products that allow customers to build new apps that run on the customers’ current infrastructure or as hosted services, as well as would-be customers who may develop enterprise applications for internal use  **[0001108524-24-000005_crm-20240131.htm:15]** .

7d21cade67c93187d4bbe9f6fc9e99755a88463b30ff772f942b8315be492f5c

Americas

- United States

Europe

Asia Pacific

26a035a710b672b23bc1a06d5ff395dc1c8c2db02e51a604ec2cdfa3fba22f21

### Q3 2025 Earnings Call
- **Issued Period:** Q3 2025
- **Guided Period:** Q4 2025 and FY 2025

#### Guidance:
1. **FY 2025:**
   - **Revenue:** $37.8 billion to $38 billion, growth of 8% to 9% year-over-year.
   - **Subscription and Support Revenue:** Expected to grow approximately 10% year-over-year in constant currency.
   - **Non-GAAP Operating Margin:** 32.9%, a 240 basis point improvement year-over-year.
   - **GAAP Operating Margin:** Slightly below 20%, a 540 basis point improvement year-over-year.
   - **GAAP Diluted EPS:** $6.15 to $6.20.
   - **Non-GAAP Diluted EPS:** $9.98 to $10.03.
   - **Operating Cash Flow Growth:** 24% to 26%, inclusive of cash tax headwinds.
   - **CapEx:** Slightly below 2% of revenue.
   - **Free Cash Flow Growth:** 26% to 28%.

2. **Q4 2025:**
   - **Revenue:** $9.9 billion to $10.1 billion, up 7% to 9% year-over-year.
   - **CRPO Growth:** Approximately 9% year-over-year, including a $100 million FX headwind.
   - **GAAP EPS:** $1.55 to $1.60.
   - **Non-GAAP EPS:** $2.57 to $2.62  **[CRM_3410509_11]** .

### Q2 2025 Earnings Call
- **Issued Period:** Q2 2025
- **Guided Period:** Q3 2025 and FY 2025

#### Guidance:
1. **FY 2025:**
   - **Revenue:** $37.7 billion to $38 billion, growth of 8% to 9% year-over-year.
   - **Non-GAAP Operating Margin:** 32.8%, a 230 basis point improvement year-over-year.
   - **GAAP Operating Margin:** Slightly below 20%, a 530 basis point improvement year-over-year.
   - **GAAP Diluted EPS:** $6.05 to $6.13.
   - **Non-GAAP Diluted EPS:** $10.03 to $10.11.
   - **Operating Cash Flow Growth:** 23% to 25%, inclusive of cash tax headwind.
   - **CapEx:** Slightly below 2% of revenue.
   - **Free Cash Flow Growth:** 25% to 27%.
   - **Subscription and Support Revenue Growth:** Approximately 10% year-over-year in constant currency.
   - **Attrition:** Slightly above 8%.
   - **Stock-Based Compensation:** 8.4% as a percent of revenue.

2. **Q3 2025:**
   - **Revenue:** $9.31 billion to $9.36 billion, up 7% year-over-year.
   - **CRPO Growth:** 9% year-over-year, including a $100 million FX tailwind  **[CRM_3400056_15]** .

### Q1 2025 Earnings Call
- **Issued Period:** Q1 2025
- **Guided Period:** Q2 2025 and FY 2025

#### Guidance:
1. **FY 2025:**
   - **Revenue:** $37.7 billion to $38 billion, growth of 8% to 9% year-over-year.
   - **Subscription and Support Revenue Growth:** Approximately 10% year-over-year in constant currency.
   - **GAAP Operating Margin:** Approximately 20%, a 550 basis point improvement year-over-year.
   - **Non-GAAP Operating Margin:** 32.5%, a 200 basis point improvement year-over-year.
   - **GAAP Diluted EPS:** $6.04 to $6.12.
   - **Non-GAAP Diluted EPS:** $9.86 to $9.94.
   - **Operating Cash Flow Growth:** 21% to 24%, inclusive of cash tax payment headwinds.
   - **CapEx:** Slightly below 2% of revenue.
   - **Free Cash Flow Growth:** 23% to 26%.
   - **Attrition:** Slightly above 8%.

2. **Q2 2025:**
   - **Revenue:** $9.2 billion to $9.25 billion, up 7% to 8% year-over-year.
   - **CRPO Growth:** 9% year-over-year, resulting in 10% constant currency growth.
   - **GAAP EPS:** $1.31 to $1.33.
   - **Non-GAAP EPS:** $2.34 to $2.36  **[CRM_3390992_7]** .

### Q4 2024 Earnings Call
- **Issued Period:** Q4 2024
- **Guided Period:** Q1 2025 and FY 2025

#### Guidance:
1. **FY 2025:**
   - **Revenue:** $37.7 billion to $38 billion, growth of 8% to 9% year-over-year.
   - **Non-GAAP Operating Margin:** 32.5%, a 200-basis-point improvement year-over-year.
   - **GAAP Operating Margin:** 20.4%, a 600 basis point improvement year-over-year.
   - **GAAP Diluted EPS:** $6.07 to $6.15.
   - **Non-GAAP Diluted EPS:** $9.68 to $9.76.
   - **Operating Cash Flow Growth:** 21% to 24%, including a 10-point year-over-year headwind from cash taxes.
   - **Free Cash Flow Growth:** 23% to 26%.
   - **CapEx:** Slightly below 2% of revenue.
   - **Subscription and Support Revenue Growth:** Slightly above 10% year-over-year in constant currency.

2. **Q1 2025:**
   - **Revenue:** $9.12 billion to $9.17 billion, up 11% year-over-year.
   - **CRPO Growth:** 11% year-over-year, resulting in 12% constant currency growth.
   - **GAAP EPS:** $1.42 to $1.44.
   - **Non-GAAP EPS:** $2.37 to $2.39  **[CRM_3375563_13]** **[CRM_3375563_12]** .

a7a32780e49bef38f612f4f8378511790e0ff6d3c7f3f96d0f4760fb6ea054c5

c4bf7e3050237d556c4abc1b6499eecd7500d443b5653c46e69e5c73ca936f67

| Program Details          | Program 1       | Program 2       | Program 3       |
|--------------------------|-----------------|-----------------|-----------------|
| Approval Date            | August 2022  **[0001108524-24-000034_crm-20241031.htm:28]** **[0001108524-24-000034_crm-20241031.htm:50]**  | February 2023  **[0001108524-24-000034_crm-20241031.htm:28]** **[0001108524-24-000034_crm-20241031.htm:50]**  | February 2024  **[0001108524-24-000034_crm-20241031.htm:28]** **[0001108524-24-000034_crm-20241031.htm:50]**  |
| End Date/Duration        | No fixed expiration  **[0001108524-24-000034_crm-20241031.htm:28]** **[0001108524-24-000034_crm-20241031.htm:50]**  | No fixed expiration  **[0001108524-24-000034_crm-20241031.htm:28]** **[0001108524-24-000034_crm-20241031.htm:50]**  | No fixed expiration  **[0001108524-24-000034_crm-20241031.htm:28]** **[0001108524-24-000034_crm-20241031.htm:50]**  |
| Total additional amount  | **$10.0 billion**  **[0001108524-24-000034_crm-20241031.htm:28]** **[0001108524-24-000034_crm-20241031.htm:50]**  | **$10.0 billion**  **[0001108524-24-000034_crm-20241031.htm:28]** **[0001108524-24-000034_crm-20241031.htm:50]**  | **$10.0 billion**  **[0001108524-24-000034_crm-20241031.htm:28]** **[0001108524-24-000034_crm-20241031.htm:50]**  |
| Remaining authorization amount | **$0.6 billion**  **[0001108524-24-000034_crm-20241031.htm:28]** **[0001108524-24-000034_crm-20241031.htm:50]**  | **$0.0 billion**  **[0001108524-24-000034_crm-20241031.htm:28]** **[0001108524-24-000034_crm-20241031.htm:50]**  | **$10.0 billion**  **[0001108524-24-000034_crm-20241031.htm:28]** **[0001108524-24-000034_crm-20241031.htm:50]**  |
| Details                  | Discretionary repurchase methods  **[0001108524-24-000022_crm-20240731.htm:47]** **[0001108524-24-000034_crm-20241031.htm:99]**  | Discretionary repurchase methods  **[0001108524-24-000022_crm-20240731.htm:47]** **[0001108524-24-000034_crm-20241031.htm:99]**  | Discretionary repurchase methods  **[0001108524-24-000022_crm-20240731.htm:47]** **[0001108524-24-000034_crm-20241031.htm:99]**  |

2ff3d42709af6eead6875228d060aca4edf23b33747122e52bfc6efe2e10a988

8597ff426fd37c7aace7dafda42e67fbd9c6927df16b2b14569913d141a6bb9d

1. **Growth Drivers and AI Contribution**  
   **Q:** How will Salesforce's growth equation evolve, and when will Gen AI contribute materially?  
   **A:** Salesforce's growth is driven by selling apps, Data Cloud, agents, verticals, and international expansion, especially in Asia, with **double-digit growth** in some regions.  **[CRM_3400056_17]**  Gen AI is becoming a significant contributor, with plans to reach **1 billion agents by fiscal year '26**.  **[CRM_3400056_17]**  The combination of technology stack transformation, verticalization, and international growth are core levers for growth.  **[CRM_3400056_17]** 

2. **Pricing Amid Agent Productivity Gains**  
   **Q:** How will pricing adjust as agents increase productivity and reduce seat numbers?  
   **A:** Salesforce plans to price agents on a consumption basis, charging about **$2 per conversation**.  **[CRM_3400056_17]**  Despite potential reductions in seat numbers due to productivity gains, high-margin opportunities from agents and consumption-based products are expected to offset any impact.  **[CRM_3400056_17]** 

3. **Americas Growth Slowdown**  
   **Q:** What will it take to get Americas back to double-digit growth?  
   **A:** The Americas market is not saturated, nor is competition holding Salesforce back.  **[CRM_3400056_20]**  The slowdown to **around 8% growth** is due to a measured buying environment impacting transactional and SMB businesses.  **[CRM_3400056_20]**  Salesforce sees a huge opportunity to return to double-digit growth through continued innovation and meeting customer needs.  **[CRM_3400056_20]** 

4. **CFO Amy Weaver's Departure**  
   **Q:** Why is Amy Weaver stepping down as CFO now?  
   **A:** Amy Weaver feels it's the right time after an extraordinary **11-year** journey, including **nearly doubling operating margin from 17% to close to 33%** and initiating a **$20 billion** buyback program.  **[CRM_3400056_20]**  She plans to focus on a smooth transition, relax, recharge, and look for new adventures.  **[CRM_3400056_20]** 

5. **AI's Impact on Seat Demand**  
   **Q:** Will AI reduce the need for seats, and how will that affect Salesforce?  
   **A:** Salesforce believes that while AI may improve productivity, it opens new opportunities, such as Agentforce resolving over **90%** of patient inquiries in healthcare.  **[CRM_3400056_18]**  This creates new business areas rather than reducing seat demand.  **[CRM_3400056_18]** 

6. **Agentforce Implementation and Data Cloud**  
   **Q:** How quickly can customers adopt Agentforce, and is Data Cloud required?  
   **A:** Customers can get started with Agentforce almost immediately, achieving high **CSAT scores of 4 out of 5**.  **[CRM_3400056_19]**  While Data Cloud enhances performance, it is not a prerequisite for Agentforce to work.  **[CRM_3400056_19]** 

7. **Macro Environment Outlook**  
   **Q:** Will future rate reductions and post-elections improve the selling environment?  
   **A:** Marc Benioff shared that innovations like AI and Agentforce are creating significant opportunities across industries, focusing on driving growth through technology rather than macroeconomic factors.  **[CRM_3400056_18]** 

b9377152b612312fb5acd631c678bece0fe12fd50939f0e579efdbc815fc661b

| Name                | Start Date | End Date | Reason for Change |
|---------------------|------------|----------|-------------------|
| Ernst & Young LLP   | 2002  **[0001108524-24-000005_crm-20240131.htm:96]**  | Present  | Current auditor   |

042fa9476218c7539ffbc4c36b44fb5a4369407353fe3c6c6ed73f20ef76d012

e6da81d34229e919ac050611237e94b571c4cce3e899103f05cdc70082b134af

- Total Revenue: $9.444 billion (+8% YoY)  **[0001108524-23-000048_crm-20231031.htm:3]** **[0001108524-24-000034_crm-20241031.htm:44]** **[0001108524-24-000034_crm-20241031.htm:43]**   
- Subscription & Support: $8.879 billion (+9% YoY)  **[0001108524-23-000048_crm-20231031.htm:46]** **[0001108524-24-000034_crm-20241031.htm:44]** **[0001108524-24-000034_crm-20241031.htm:43]**   
- Americas: $6.220 billion (+6% YoY)  **[0001108524-23-000048_crm-20231031.htm:46]** **[0001108524-24-000034_crm-20241031.htm:45]**   
- Europe: $2.228 billion (+12% YoY)  **[0001108524-23-000048_crm-20231031.htm:46]** **[0001108524-24-000034_crm-20241031.htm:45]**   
- Asia Pacific: $996 million (**+16%** YoY)  **[0001108524-23-000048_crm-20231031.htm:46]** **[0001108524-24-000034_crm-20241031.htm:45]**   
- Net Income: $1.527 billion (**+25%** YoY)  **[0001108524-23-000048_crm-20231031.htm:3]** **[0001108524-24-000034_crm-20241031.htm:3]**   
- Diluted EPS: $1.57 (+26% YoY)  **[0001108524-23-000048_crm-20231031.htm:3]** **[0001108524-24-000034_crm-20241031.htm:3]**   

5c73297c5ce80d98ab3d9ee1298c05fd124f9bff862214e73cc91488e13c1ec3

794f2e7b4fc0c64439c21bb856eda63d1dfa29e0b9ecc01e05801f90c2846209

Remaining performance obligation (billions)

ca55ff7461b6c0e6096d6bda6ed376ec708aed80a6654c8d261d993805f5ad1a

| Year | Amount Due (in millions) | Debt Type                     | Interest Rate (%) | % of Total Debt |
|------|--------------------------|-------------------------------|-------------------|-----------------|
| 2028 | $1,500 **[0001108524-24-000034_crm-20241031.htm:50]**           | 2028 Senior Notes             | 3.70 **[0001108524-24-000034_crm-20241031.htm:54]**      | 17.6% = (1,500 / 8,500) * 100 **[0001108524-24-000034_crm-20241031.htm:50]** **[0001108524-24-000034_crm-20241031.htm:26]** |
| 2028 | $1,000 **[0001108524-24-000034_crm-20241031.htm:50]**           | 2028 Senior Sustainability Notes | 1.50 **[0001108524-24-000034_crm-20241031.htm:54]**  | 11.8% = (1,000 / 8,500) * 100 **[0001108524-24-000034_crm-20241031.htm:50]** **[0001108524-24-000034_crm-20241031.htm:26]** |
| 2031 | $1,500 **[0001108524-24-000034_crm-20241031.htm:50]**           | 2031 Senior Notes             | 1.95 **[0001108524-24-000034_crm-20241031.htm:54]**      | 17.6% = (1,500 / 8,500) * 100 **[0001108524-24-000034_crm-20241031.htm:50]** **[0001108524-24-000034_crm-20241031.htm:26]** |
| 2041 | $1,250 **[0001108524-24-000034_crm-20241031.htm:50]**           | 2041 Senior Notes             | 2.70 **[0001108524-24-000034_crm-20241031.htm:54]**      | 14.7% = (1,250 / 8,500) * 100 **[0001108524-24-000034_crm-20241031.htm:50]** **[0001108524-24-000034_crm-20241031.htm:26]** |
| 2051 | $2,000 **[0001108524-24-000034_crm-20241031.htm:50]**           | 2051 Senior Notes             | 2.90 **[0001108524-24-000034_crm-20241031.htm:54]**      | 23.5% = (2,000 / 8,500) * 100 **[0001108524-24-000034_crm-20241031.htm:50]** **[0001108524-24-000034_crm-20241031.htm:26]** |
| 2061 | $1,250 **[0001108524-24-000034_crm-20241031.htm:50]**           | 2061 Senior Notes             | 3.05 **[0001108524-24-000034_crm-20241031.htm:54]**      | 14.7% = (1,250 / 8,500) * 100 **[0001108524-24-000034_crm-20241031.htm:50]** **[0001108524-24-000034_crm-20241031.htm:26]** |

baf10b36036afe9b00e87ea5561947fdbdba96988db0bfe5ef4582dd6e3d8ad4

4a0ca3f583b6a6c7c4e6c5565bb487aec796d88e775793b00a0d61280f4e1653

- **Strong customer adoption of Agentforce across key products:** Salesforce is experiencing significant traction with over **200 initial Agentforce deals**, primarily as add-ons to their **Service Cloud offerings**. There is a great opportunity ahead with Agentforce also across **Sales Cloud, Marketing Cloud, Commerce Cloud**, and **Data Cloud**, which is included in all Agentforce deals.  **[CRM_3410509_13]**
- **Value-driven usage-based pricing model:** The **$2 per conversation** usage-based pricing for Agentforce provides high value to customers compared to their current spending, making pricing discussions significantly easier and demonstrating the cost savings delivered through Agentforce.  **[CRM_3410509_14]**
- **Unified platform enhances AI effectiveness and differentiation:** Salesforce's initiatives like **'More Core'** and **'Foundations'** integrate sales, service, marketing, analytics, Data Cloud, and Slack into **one platform**, vital for AI to work effectively by leveraging shared data and metadata. This unified approach enhances the effectiveness of AI solutions like Agentforce, uniquely differentiating Salesforce in the market.  **[CRM_3410509_16]** **[CRM_3410509_15]**

5c7e8644b4ab709eb8e5cbd0a46e720f8ff83bdd4a8a62776fc4c90a5022205f

- **Data Cloud approaching $400 million in ARR, growing at nearly 90% year-over-year** demonstrates strong demand and significant growth potential in Salesforce's AI and data products.  **[CRM_3375563_20]**
- Customers are investing heavily in Salesforce's AI capabilities to drive **productivity, enhance customer relationships, and improve margins**, with AI seen as essential for competitiveness, potentially leading to acceleration in top-line growth.  **[CRM_3375563_14]** **[CRM_3375563_6]**
- Salesforce's internal use of its AI technologies has led to **improved efficiencies and productivity**, especially in support operations, showcasing the effectiveness of its AI solutions and supporting sales efforts.  **[CRM_3375563_18]**

efeeb3398b98d60cd3af0c3222c2253e5272c06aeecf1d318ec226167f7839c9

- **Salesforce experienced weaker performance in EMEA and the Americas, with pronounced weakness due to measured buying environments, particularly impacting the technology sector and industries like high-tech, retail, and consumer goods.**  **[CRM_3390992_10]**
- **The company saw softer bookings in Q1, attributed to ongoing measured buying behavior, including elongated deal cycles, deal compression, increased budget scrutiny, and a rise in 'no decision' outcomes.**  **[CRM_3390992_13]**
- **Despite lower Q1 bookings and moderated CRPO growth, Salesforce maintained its full-year revenue guidance, potentially indicating risk if the buying environment does not improve as expected.**  **[CRM_3390992_8]**

e51c5e435c8aca0418cb4105b9a2ac86b324b96722408560941ae33d03d82ef7

- **Data Integration Challenges May Delay Agentforce Adoption**: According to Brian Millham, for customers with siloed data across different divisions, it can take **"6 months even to bring that data together"** and harmonize it for Agentforce implementation. This prolonged timeline may slow down the adoption of Agentforce and delay revenue realization.  **[CRM_3410509_17]**
- **Revenue Constraints in Key Markets**: Amy Weaver noted that while there was strong new business growth in LATAM, Canada, and Australia, **"the United States and parts of EMEA remained constrained"**. Ongoing constraints in these significant markets could impact overall revenue growth.  **[CRM_3410509_10]**
- **Limited Near-Term Financial Impact from Agentforce**: Despite the excitement around Agentforce, Amy Weaver stated, **"we do not expect a material contribution to CRPO from Q4 Agentforce related bookings"**. This suggests that the financial benefits of Agentforce may not be realized in the near term, potentially affecting short-term revenue growth.  **[CRM_3410509_11]**

1914c0eb428dc6d4be7f12172d70d4885e903b97c2988c389dec99cf6f723319

1. **FY'25 Revenue Guidance**  
   **Q:** Given lower CRPO growth, why keep FY'25 guidance?  
   **A:** Management is confident they'll stay within the guidance range despite lower CRPO growth due to strong product demand, especially in **multi-cloud adoption** and **Data Cloud**. They highlight healthy customer retention, benefits from pricing changes, and the AI transformation driving growth.  **[CRM_3390992_8]** 

2. **Selling Environment and Sales Changes**  
   **Q:** Has selling environment worsened, or are sales changes causing issues?  
   **A:** The selling environment remains similar to prior periods with measured buying. Organizational changes in sales had a short-term impact on Q1 results, including deal compressions and delays. Combining economic factors and sales adjustments led to lower bookings in the quarter.  **[CRM_3390992_13]** 

3. **M&A Framework**  
   **Q:** Has your M&A framework changed amid shareholder concerns?  
   **A:** While M&A remains important, management emphasizes they'll be cautious and only pursue acquisitions fitting their framework, focusing on **time to value accretion**, prudent balance sheet use, and targeting **best-in-class assets**. They are committed to optimizing shareholder value through strong **free cash flow**, profitable growth, and returning cash via **share repurchases** and **dividends**.  **[CRM_3390992_12]** 

4. **Go-To-Market Changes**  
   **Q:** What are the go-to-market changes and their impact?  
   **A:** Management made go-to-market changes in Q1 to align with their strategy and support **multi-cloud customers**. These adjustments had a short-term impact but are intended to drive productivity gains in subsequent quarters by enhancing sales efficiency and better serving customers.  **[CRM_3390992_9]** 

5. **AI Impact on Spending**  
   **Q:** Is AI uncertainty impacting software spending?  
   **A:** Companies are rationalizing software investments but are preparing for AI by organizing their data. Management sees continued demand for **Data Cloud** as customers ready themselves for **AI-driven productivity gains**, suggesting any spending pause is temporary.  **[CRM_3390992_11]** 

6. **Preparing for AI Architectural Shift**  
   **Q:** Is AI causing a structural shift, and how is Salesforce preparing?  
   **A:** Management believes AI is driving an architectural change in technology. Salesforce is focusing on building robust data architectures with **highly normalized and federated data**, leveraging their vast **customer data** to deliver AI capabilities. This prepares them for the transition and helps provide increased productivity for customers.  **[CRM_3390992_14]** 

7. **Geographic Performance**  
   **Q:** Which regions experienced weakness this quarter?  
   **A:** **EMEA and the Americas** showed weakness due to the measured buying environment, with EMEA feeling it most. However, **Japan's business accelerated significantly**, and **Canada was strong**. The Americas faced challenges due to exposure to the technology sector and **SMB headwinds**.  **[CRM_3390992_10]** 

8. **Customer Adaptation to Pricing Models**  
   **Q:** Are customers pausing due to new innovations and pricing models?  
   **A:** While customers are adapting to new pricing models, including consumption pricing and hybrid models like **UE Plus**, management believes these offerings meet customer needs at competitive price points. They emphasize being a trusted partner in delivering AI at scale, suggesting they're supporting customers through this transition without significant pauses.  **[CRM_3390992_15]** 

1b13d352e8bb8354b36da3fe748474585d39456ecaef9d66125dd9e50a7bdbde

- **Salesforce's introduction of Agentforce, autonomous AI agents, is expected to significantly drive growth by transforming customers into agent-first companies, achieving remarkable productivity gains like _90% case resolution rates_ in trials. This positions Salesforce to capture new market share in AI agents.**  **[CRM_3400056_17]** ,  **[CRM_3400056_18]**
- **Salesforce is focusing on multiple growth levers, including the transformation of the technology stack with Agentforce and Data Cloud, verticalization through industry-specific solutions, and international expansion, all contributing to driving growth and positioning the company for future success.**  **[CRM_3400056_17]** ,  **[CRM_3400056_20]**
- **The _high-margin revenue potential_ from Agentforce agents, priced at _about $2 per conversation_, represents a new consumption-based revenue stream that can drive significant growth and profitability for Salesforce.**  **[CRM_3400056_17]**

b95d454f3458e3a509ea36345010b0c6dbc5c5e6f69ed2dbe14ba260e8f72652

1. **Timing of AI Revenue Impact**  
   **Q:** When will AI investments materially impact revenue?  
   **A:** The company expects AI-related revenue to start showing up later in the fiscal year, but they are not factoring in a material contribution from new AI products into FY '25 revenue guidance at this time.  **[CRM_3375563_15]** 

2. **Operating Margin Expansion**  
   **Q:** How are operating margins expanding by 200 basis points?  
   **A:** The **200 basis point** increase in operating margin is driven by continued leverage from hard decisions made last year, disciplined headcount management, and go-to-market efficiencies. Investments focus on high-productivity areas like AI and data, done in cost-effective ways.  **[CRM_3375563_15]** 

3. **Leading Growth Indicators**  
   **Q:** What are the leading indicators of growth rebounding?  
   **A:** Positive indicators include improved bookings growth, increased account executive productivity, and a strong pipeline. However, there's acknowledgment of a lagging impact from the prior measured buying environment.  **[CRM_3375563_16]** 

4. **Pricing and Bundling Impact**  
   **Q:** When will pricing and bundling changes boost revenue?  
   **A:** Progress with offerings like **UE Plus** and the price increase is encouraging, but these changes won't significantly impact this year's revenue. The benefits are expected to show up in years two and three as renewals and uplifts occur.  **[CRM_3375563_17]** 

5. **Professional Services Decline**  
   **Q:** Why did professional services revenue decline by 9%?  
   **A:** Customers are choosing smaller, faster projects over large transformations, impacting professional services revenue. Demand remains high, but the shift to smaller transactions has led to the decline.  **[CRM_3375563_17]** 

6. **Internal AI Efficiency Gains**  
   **Q:** Are internal teams benefiting from AI tools for efficiency?  
   **A:** Yes, the company is leveraging its own AI technology internally. Significant benefits are seen in support operations through case summaries and faster access to knowledge bases, contributing to margin expansion.  **[CRM_3375563_18]** 

7. **Industry Adoption of AI**  
   **Q:** Which industries are adopting AI more rapidly?  
   **A:** It's uncertain which industries are ahead in AI adoption. The company emphasizes that every industry is undergoing an AI transformation and stresses the importance of trust and values in this evolution.  **[CRM_3375563_19]** 

8. **Customer Uptake of Data Cloud and Einstein 1**  
   **Q:** Can Data Cloud be taken beyond customer-related apps?  
   **A:** Data Cloud offers a significant upsell opportunity. The focus is on selling existing clouds to customers and upselling with Data Cloud and Einstein 1 to create one integrated platform. There's substantial work to do in cross-selling and increasing adoption.  **[CRM_3375563_20]** 

cd8addc1002b73e2d336541609c95a5a47631b423ef86396caddd5d105581ada

- **Strong Momentum in Data Cloud and AI Adoption**: Salesforce's Data Cloud is a key growth driver, included in **25% of their $1 million-plus deals** and adding over **1,000 Data Cloud customers for the second quarter in a row**. This positions Salesforce well for the AI transformation, managing over **250 petabytes of customer data** essential for AI models.  **[CRM_3390992_8]** ,  **[CRM_3390992_15]** ,  **[CRM_3390992_14]**
- **Confidence in Meeting Revenue Guidance Despite Macroeconomic Headwinds**: Despite a measured buying environment and softer bookings in Q1, Salesforce is maintaining its full fiscal year 2025 revenue guidance of **$37.7 billion to $38 billion**, reflecting growth of **8% to 9%** year-over-year, demonstrating confidence in their pipeline and product demand.  **[CRM_3390992_8]** ,  **[CRM_3390992_13]**
- **Commitment to Profitable Growth and Shareholder Value**: Salesforce continues to focus on profitable growth at scale, delivering strong free cash flow and expanding non-GAAP operating margins. They maintain a disciplined capital allocation strategy, balancing organic and inorganic growth opportunities within their framework, and are committed to optimizing shareholder value.  **[CRM_3390992_12]** ,  **[CRM_3390992_8]**

55be514a15f936f47770ab143aef093d7d3d043dac97caf0e5c9202ccedd8290

- Salesforce's growth in the Americas region, its largest market, has slowed to **8%**, which is one of the lowest levels observed and below historical double-digit growth. This slowdown is attributed to a "measured buying environment" affecting transactional and SMB businesses.  **[CRM_3400056_20]**
- The upcoming departure of CFO **Amy Weaver** after leading significant financial transformations raises concerns about leadership stability and the execution of future financial strategies.  **[CRM_3400056_20]**
- Increased adoption of AI agents could lead to customers needing fewer human seats, potentially impacting Salesforce's traditional revenue model that relies on per-user license fees. Investors are worried that productivity gains from AI could reduce the number of seats used.  **[CRM_3400056_17]** **[CRM_3400056_18]**

e8081d81346c1fdff11e9776c99cbd1bda05a7cf92c3ac492abb5a3b19c020d7

- Despite strong interest in AI and Data Cloud, Salesforce does not expect a material contribution from new AI products into fiscal year 2025 revenue guidance, indicating that revenue uplift from AI may take time to materialize.  **[CRM_3375563_13]** **[CRM_3375563_16]**
- The company acknowledges that the measured buying environment and elongated sales cycles continue to impact their business, and previous buying constraints will take time to flow through their subscription revenue due to lag effects, potentially limiting near-term top-line growth.  **[CRM_3375563_14]** **[CRM_3375563_16]** **[CRM_3375563_13]**
- Management indicates they are still operating in a cautious macro environment, requiring deep inspection and tight management, suggesting that economic uncertainties may persist, affecting customer spending behaviors.  **[CRM_3375563_14]**

5fdc93b4e61f331d64786d9daa6a00a67d517f8e33b527cfd96bf51e3bec492f

1. **Agentforce Deals and Growth**  
   **Q:** Can you provide details on the 200 Agentforce deals?  
   **A:** We're seeing incredible traction with Agentforce as add-ons to our Service Cloud offerings. The initial **200 deals** were largely upsells within Service Cloud, but customers recognize it's a platform opportunity. We feel great about the opportunities ahead with Sales Cloud, Marketing Cloud, Commerce Cloud, and Data Cloud, which is included in all Agentforce deals. These 200 deals are just the tip of the iceberg for Agentforce.  **[CRM_3410509_13]** 

2. **Agentforce Pricing**  
   **Q:** How are pricing discussions for Agentforce progressing?  
   **A:** Agentforce has a usage-based pricing structure at **$2 per conversation**, offering high value to customers given their current spending. Customers understand their labor costs, and deploying agents helps manage interactions more efficiently. Pricing conversations are significantly easier, and we've provided calculators on our website to help customers understand the cost structures.  **[CRM_3410509_14]** 

3. **More Core Initiative**  
   **Q:** Tell us more about the "More Core" initiative and its significance.  
   **A:** Over the past two years, we've significantly invested in AI and "More Core," increasing our engineers' productivity and numbers. This has resulted in integrating products like Commerce and Marketing into our core platform. Having Sales, Service, Marketing, Analytics, Data Cloud, and Slack on one platform enhances AI capabilities, allowing for comprehensive functionality that's unique to Salesforce.  **[CRM_3410509_15]** 

4. **Data Readiness for Agentforce**  
   **Q:** How prepared are customers with data to leverage Agentforce?  
   **A:** It varies by customer. Those with strong data architecture can turn on Data Cloud, harmonize data, and leverage our AI solutions in **weeks or months**. Others with siloed data may take up to **six months**. All customers recognize the need for harmonized data, and there's tremendous demand for the technology and people to achieve it.  **[CRM_3410509_17]** 

5. **Foundations Offering Adoption**  
   **Q:** What's the customer response to Foundations, adoption outlook?  
   **A:** Foundations showcases our platform's evolution, allowing customers to access Sales, Service, Marketing, Analytics, Data Cloud, and Slack seamlessly. Customers see they don't need separate products—they can just flip the switch. There's still work to educate customers on our capabilities, but we're excited because we're highly differentiated.  **[CRM_3410509_16]** 

6. **Agentforce Halo Effect**  
   **Q:** How is Agentforce affecting other product lines?  
   **A:** Our top customers are adopting a comprehensive "agent-first" suite, integrating Sales, Service, Marketing, Analytics, Data Cloud, and Slack. In our top **25 deals**, we saw collaboration with **five clouds** each. Customers realize that building agent-first companies requires access to comprehensive data and metadata, and we're unique in offering this integrated platform.  **[CRM_3410509_12]** 

a885459e83b4e29d0f59856f55a98fb6893fe2272be3eac2878701faf2514c41

Salesforce Inc (CRM)

Financials