Salesforce, Inc.

Welcome to Salesforce's fiscal 2025 first quarter results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the star one. I would now like to hand the conference over to your speaker, Mike Spencer, Executive Vice President of Finance and Strategy and Investor Relations. Sir, you may begin.

Thanks, and good afternoon. Thanks for joining us today on our fiscal 2025 first quarter results conference call. Our press release, SEC filings, and a replay of today's call can be found on our website. Joining me on the call today is Mark Benioff, Chair and CEO, Amy Weaver, President and Chief Financial Officer, and Brian Millam, President and Chief Operating Officer. As a reminder, our commentary today will include non-GAAP measures. Reconciliations of our GAAP and non-GAAP results and guidance can be found in earnings materials and press release. Some of our comments today may contain forward-looking statements that are subject to risks, uncertainties, and assumptions, which could change. Should any of these risks materialize, or should our assumptions prove to be incorrect, actual company results could differ materially from these forward-looking statements. A description of these risks, uncertainties, and assumptions and other factors that could affect our financial results is included in our SEC filings, including our most recent report on Forms 10-K, 10-Q, and any other SEC filings. Except as required by law, we do not undertake any responsibility to update these forward-looking statements. And with that, let me hand the call over to Mark.

All right. Hey, thanks so much, Mike. I'm really excited for the call today because there's two things that I'm really been looking forward to talking about. First is our incredible financial transformation, as you can see from the numbers today. And the second is the incredible work that's happening with artificial intelligence. Look, first of all, in Q1, we delivered $9.13 billion in revenue, up 11% year-over-year in both nominal and constant currency. Subscription and support revenue grew at 12% year-over-year and 13% in constant currency. And for the 11th year in a row, Salesforce is still ranked the number one provider worldwide by market share based on the latest IDC software tracker. I mean, that really gets to a core part of our technology transformation that I'm going to get to, which is the transformation to AI. And because we are the number one CRM provider, we're now managing more than 250 petabytes of data for our customers. This is going to be absolutely critical as they move into artificial intelligence. And now also let's turn to our financial guidance. For fiscal year 25, we're maintaining our revenue guidance at $37.7 to $38 billion, growth of 8% to 9% year-over-year. And we now expect fiscal year 25 subscription and support revenue growth to be approximately 10% year-over-year in constant currency. As you can see from our results, we remain committed to profitable growth at scale, and I would also say incredible cash flow, and then continue to expect fiscal year 25 non-GAAP operating margin of 32.5%, a 200 base point, improvement year over year i'm extremely proud of our team's focus and determination to deliver this world-class financial result including this cash flow and profitability in the quarter and brian and amy will discuss q1 performance in much greater detail as i said i couldn't be more excited about the opportunity to head for salesforce not only with these incredible financial results but in the incredible transformations that we're leading with our customers in artificial intelligence Every company in the world across every industry is being transformed by AI in the next few years. And when you look at the power of AI, you realize the models and the UI are not the critical success factors. It's not critical where the enterprise will transform. There are thousands of these models, some open source and some closed source models, some built with billions, some with just a few dollars. Most of these will not survive. They're just commodities now, and it's not where the intelligence lies. and they don't know anything about a company's customer relationships. Each day, hundreds of peta types of data are created that AI models can use for training and generating output. But the one thing that every enterprise needs to make AI work is their customer data, as well as the metadata that describes the data, which provides the attributes and context the AI models need to generate accurate, relevant output. And customer data and metadata are the new gold for these enterprises, and Salesforce now manages, as I mentioned, 250 petabytes of this precious material. We have one of the most and largest repositories of front office enterprise data and metadata in the world. And every day, more companies are adopting Salesforce as their front office, bringing all their structured and unstructured data into our platform. Nearly half of our top 50 wins in the quarter included six or more of our clouds. That really speaks to the comprehensive nature of our strategy. It's incredible. And many of these customers have a central business and customer data that exists outside of Salesforce that's trapped in thousands of apps and silos. It's disconnected. That's why we're seeing this incredible mental with our data cloud, our fastest growing organic and our next billion dollar cloud. It's the first step to becoming an AI enterprise. Data cloud gives every company a single source of truth and You can securely power AI insights and actions across the entire customer of 360. Now, let me tell you why I'm excited about Data Cloud and why it's transforming our customers and how it's preparing them for this next generation of artificial intelligence. Data Cloud was included in 25% of our million-dollar-plus deals in the quarter. We added more than 1,000 Data Cloud customers for the second quarter in a row. Eight trillion records were ingested into Data Cloud in the quarter, up 42% year-over-year, and we processed two quadrillion records. That's a 217% increase compared to last year. Over one trillion activations drove customer engagement, which is a 33% increase year-over-year. This incredible growth of data in our system and the level of transactions that we're able to deliver, not just in the core system, but especially in Data Cloud, is preparing our customers for this next generation of AI. And last month, we created a zero-copy partner network with partners, including Amazon, Databricks, Google, IBM, Microsoft, and Snowflake, so customers can access this live data from anywhere in Data Cloud without copying or moving it. It's the engine of our future growth, and this is the engine of our future artificial intelligence growth as well. As you know, for years, we've delivered predictive AI across all our clouds with Einstein. Einstein is generating hundreds of billions of predictions per day, trillions per week. Now we're working with thousands of customers to power generative AI use cases with our Einstein co-pilot, our prompt builder, our Einstein studio, all of which went live in the first quarter. And we've closed hundreds of co-pilot deals since this incredible technology has gone GA. And in just the last few months, we're seeing Einstein co-pilot develop higher levels of capabilities. We are absolutely delighted and could not be more excited about the success that we're seeing with our customers with this great new capability. SACS, a leader in the luxury fashion market, part of Hudson Bay, went all in on Salesforce in the quarter. CEO Mark Metric is using AI to create more personal experiences for every customer touchpoint across their company. And with our Einstein One platform and data cloud, SACS can unify and activate all its customer data to power trusted AI. Another great story is FedEx, a company that we all know, bringing together previously siloed information. It's the leader in getting packages delivered quickly. And of course, how are we going to now deliver a more productive, more efficient, and more profitable FedEx? The Salesforce data and app and AI capabilities generate expense savings. This is the core efficiency while growing and accelerating top line revenue. This is the effectiveness that we're delivering for FedEx. This efficiency includes next best action for sellers, automated lead nurturing, slack for workflow management, opportunity scoring, a virtual assistant, AI on unstructured data for delivering content to sales and customer service. And when we think about effectiveness, we see our journey builder delivering hyper personalization integrating customer experiences across service, sales, marketing, the ability to tailor and deliver customer experiences based on a customer 360 view. When we look at this incredible next generation of capability we've delivered at FedEx, gone now are these days of static business rules that leave customers dissatisfied, asking, do they not know that I'm a valued customer of FedEx? Now FedEx has not only the power of the customer 360, but the power of AI to unlock so much more commercial potential by conducting an orchestra of commercial functions that never played well together before. You have a significant opportunity now with Salesforce and this incredible platform that sellers can convince companies to transform all of their incredible capabilities to deliver another level of profitability. I think stories like that are driving our company forward, and it's all driven by the power of artificial intelligence. Another story I'm really excited about in the quarter is Air India. Transform with data and AI. If you don't know about Air India, they're an incredible airline who's acquired multiple airlines to create this amazing platform for India's growth. And with Data Cloud, Air India is unifying Data Cloud across loyalty, reservations, flight systems, and data warehouses. They have a single source of truth to handle more than 550,000 service cases each month. And now with Einstein, we're automatically classifying and summarizing cases and sending that to the right agent with recommended next steps and upgrading and high value passenger experiences. Even when things happen like a flight delay, our system is able to immediately intervene and provide the right capability to the right customer at the right time. All of that frees up agents to deliver more personal service and create more personal relationships, a more profitable, a more productive, a more efficient Air India, a company that's using AI to completely transform their capability. Well, we're looking forward to talk to you more in this call about these incredible transformations, the financial transformation that we've gone through with these incredible cash flow and margin numbers, and this incredible artificial intelligence transformation. And now over to Brian.