Salesforce Inc Q2 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Keith Weiss - Morgan Stanley - Analyst : Congratulations on a really solid quarter. And Amy, really heartbroken see you going. It's been great working with you over the past four years as CFO. You've done an amazing job in the role. Two-part question. One on sort of the growth equation for Salesforce. A lot of excitement around the generative AI and the new AI capabilities and expanding portfolio there. We're all really excited about. There's a lot of other parts of the equation that are adding to growth, whether it's industry cloud or international expansion or multi-cloud solution. And maybe a question for Brian. Can you help us understand how to build up the growth equation? Like where are you guys getting those points of growth? And when does Gen AI become a more material contributor there. And then the second question is around pricing. With agents coming into the picture with productivity gains of 90% deflection rates Investors are going to worry about the number of seats being used coming down those productivity gains, how does the pricing change to account for that? So Salesforce still get the value from these solutions on a go-forward basis?

Question: Kash Rangan - Goldman Sachs - Analyst : Marc, you made my heart feel heavy as well with Sandy. You might know I used to work for Sandy a long time ago. So fares with you. . Back to the business, congrats on the quarter, Amy, unbelievable, I do not know anybody who was a Chief Legal Officer and became a successful CFO and led the company through a transformation. So you'll go down in history as a very unique person in that regard. One macro thing, Marc, you've been through so many cycles before. Do you think rate reductions and post elections, it might be more conducive selling environment at a high level? And also the micro question with AI. Clearly, the debate is it going to create so much productivity that we need fewer people. Clearly, your idea is that we're going to float agents out there. But how confident are you that based on everything that you've seen so far that the world might not need more seats and that you don't have to be entirely dependent only on consumption that this might actually further penetration of seats and it might be about who is not using AI and they are going to be losers versus people that aren't using AI? So, how does this play out in your view, and you've been through the cloud battle and all that? So I love your perspective.

Question: Kirk Materne - Evercore ISI - Analyst : I'll echo the congrats on a nice quarter. And Amy, thanks so much for all your efforts over the last 4 years. It's been pleasure working with you. Mark, one of the questions I have for you is, obviously, one of the challenges with AI from an enterprise perspective has been the complexity, the security risks. You brought this up before. So how quickly can existing customers get up and running with Agentforce? And is Data Cloud a prerequisite for driving value? Or is that just something that sort of takes it to another level?

Question: Brent Thill - Jefferies - Analyst : I think everyone probably wants to understand kind of why now, what was the decision and maybe it's just simply 11 great years and ready for the next chapter, but I think everyone love to hear your perspective on your decision. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 28, 2024 / 9:00PM, CRM.N - Q2 2025 Salesforce Inc Earnings Call And for Brian, when you look at the Americas business, you were running double-digit growth. It went to one of the lowest levels we've seen in our model around 8%. What does it take to get back to double-digit growth? Is there a saturation issue? Is this competitive? Give us a sense of kind of what you think is happening in the Americas region?