Salesforce Inc at Barclays Global Technology Conference Transcript

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

Question: Raimo Lenschow - Barclays - Analyst : Yeah. And just to get everyone grounded again, like last week, you had like Q3 results, they were kind of well received by the market. Share price kind of reacted well. From your perspective, looking into the company and into the operations, how did the quarter play out for you? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 12, 2024 / 8:10PM, CRM.N - Salesforce Inc at Barclays Global Technology Conference

Question: Raimo Lenschow - Barclays - Analyst : That's really nice. And if you think about the number one question besides kind of GenAI that everyone has on their mind is like, is the world getting better out there? And if I look at -- as you said, there wasn't a lot of -- or there wasn't Agentforce in there yet, but you still were good on CRPO, which kind of used the number the streets are looking at. Your guidance for Q4 was a little bit better. How did it feel in terms of like customer conversations, how the quarter came together in terms of like does it -- other pockets of strength where you see it kind of -- it's changing a little bit compared to what we saw in the last two years?

Question: Raimo Lenschow - Barclays - Analyst : Okay, yeah. I mean, we all are hoping. Good to hear.

Question: Raimo Lenschow - Barclays - Analyst : Yeah, yeah. Okay. Well, we had a panel earlier today talking about IPOs next year and stuff.

Question: Raimo Lenschow - Barclays - Analyst : If you think about -- so changing gears, you mentioned Agentforce already. You've been with the company for kind of many, many years. And we don't want to talk to age and stuff, but like for many, many years. How does this feel compared to like previous cycles?

Question: Raimo Lenschow - Barclays - Analyst : And if you think about it, like you -- as you said, you only came out in October. That's a 1.0 kind of release in a way. Like how do we think about like the evolution of Agentforce and what more can bring to the table to make it even more broader, applicable?

Question: Raimo Lenschow - Barclays - Analyst : Is there another big one in February coming? Like at the moment, it's like -- we're going to have like a -- like is it a free? It's hard for us to keep up.

Question: Raimo Lenschow - Barclays - Analyst : Yeah. I hope we're not invited to all of them.

Question: Raimo Lenschow - Barclays - Analyst : But talking more broadly, a couple of weeks ago, and we kind of tried -- we had a big report out talking about like generative AI and the opportunity there. And yes, we put out a number, and we can all -- we can debate how we came up with the number and what the number is, but how do you think about the opportunity?

Question: Raimo Lenschow - Barclays - Analyst : Yes. And then if you think about like the -- initially, the initial ones look like it's more on the Service Cloud. Do you think that's kind of the predominant one? Or do you -- as the product gets broader --

Question: Raimo Lenschow - Barclays - Analyst : So then it's almost like a more like a platform play than in a one agent play.

Question: Raimo Lenschow - Barclays - Analyst : Yeah, yeah, yeah. Okay. So that's much broader. And then actually gets me to the next question. How do you think about the monetization or pricing of this one? And obviously, like you came up with that $2 per conversation, and that was great, but like every conversation is different. So I'm not quite sure that's kind of the long-term solution here. But like how do you think about that?

Question: Raimo Lenschow - Barclays - Analyst : Yes. Yes, it's too narrow.

Question: Raimo Lenschow - Barclays - Analyst : Yes, yes. Okay. And then if you think about it on the call, you talked a little bit about -- Agentforce is actually pulling in other things. And like other products from you. You have like broader discussions with your clients. I mean starting point is probably data cloud, I would think. But then maybe -- yes, maybe we start with there but then also maybe talk a little bit about other solutions there.

Question: Raimo Lenschow - Barclays - Analyst : And then the other things in -- and it's kind of something that even you guys haven't really talked about, like it comes up in a lot of conversations that I have with AI companies, that they all talk about MuleSoft. Because MuleSoft opens up the whole estate and it brings up all the APIs, et cetera. Is that sound like the secret M&A deal that you did, that is like it's going to give you legs for the next 10 years? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 12, 2024 / 8:10PM, CRM.N - Salesforce Inc at Barclays Global Technology Conference

Question: Raimo Lenschow - Barclays - Analyst : And then you mentioned the strength in the Sales Cloud or the resilience in Sales Cloud, Service Cloud. Like how do you think that will kind of play out for you? Is there -- because you're the kind of end-to-end provider, you kind of see more customers doing this stuff with you? Or like how does it impact the other products, like the standard products from you guys?

Question: Raimo Lenschow - Barclays - Analyst : And then I wanted to go back to -- you made earlier a point around the 200 customers you signed in the last five days before, it was just crazy. Like how do you think about the sales motion now? At the moment, because it's so hot, you're kind of more order takers and then out selling there? Or like where are we on that kind of?

Question: Raimo Lenschow - Barclays - Analyst : Yes. But it's also like a little -- like where are you on that educating your people around that?

Question: Raimo Lenschow - Barclays - Analyst : Yes, yes. And look, I mean there's a couple of good examples in the industry where people try to do consumption, but then you have to fine tune, et cetera.

Question: Raimo Lenschow - Barclays - Analyst : I wanted to switch gear a little bit. And I'm asking you the question because -- actually the question because you're not a technical person, so it kind of helps us. One of the things why this is kind of possible now, in my view, I don't know, maybe I'm wrong, and you can correct me, you've guys been on a multiyear journey towards more kind of standardizing products and move to AWS. I think it's project Hyperforce. How important is this? And where are we on the journey?

Question: Raimo Lenschow - Barclays - Analyst : And you were -- sorry to interrupt you, but you are Salesforce, like if you can't run it on scale.

Question: Raimo Lenschow - Barclays - Analyst : And how -- what does it mean for -- on the product side? Because like one of the criticisms that you guys got it was like you had a good few acquisitions that were really kind of additive. Are you bringing them into -- or like are you harmonizing that then?

Question: Raimo Lenschow - Barclays - Analyst : Yes. Well, okay, that's a big project. Okay. And that's the thing like you do actually get credit for that. And talk a little bit about -- you mentioned there's a benefit on margins as well. So despite you kind of having had space in AWS, that's still cheaper than you're doing it yourself?

Question: Raimo Lenschow - Barclays - Analyst : Yes. And then I wanted to go back to the very beginning of our organization. When we were here two years ago, we talked a lot about efficiencies, et cetera. And obviously, now we're all excited about Agentforce and recovery. But where are you on that efficiency journey? And what's the DNA in the company now like to think about like profitable growth?

Question: Raimo Lenschow - Barclays - Analyst : And then just how does that fit -- like, look, look on our side, we're like, okay. So now Salesforce is looking at their costs, and that was like 2023. Now we have the margins up a lot. So now we're going back to the old way. How does that change in your -- when you talk to your team and to your people, like how is the thinking evolved in terms of like having that part of your core?

Question: Raimo Lenschow - Barclays - Analyst : And then the [1,400] extra, is that because your sales productivity is now at a place? Or is it because you have like slightly different feeling?

Question: Raimo Lenschow - Barclays - Analyst : Yeah. Okay, last couple of minutes. I just wanted to change gear a little bit again. How should we think about acquisitions? Like there was a history of acquisitions, you've been kind of a lot more kind of internally? And I guess like doing Agentforce, you kind of needed to do that as well. How do you think about this going forward?

Question: Raimo Lenschow - Barclays - Analyst : Okay, perfect. And Brian, that's a great closing statement. And my time is just up and I'm German, so I'm going to run. Thank you very much.