Salesforce is back and they're back with An earnings beat let's get right to Salesforce co-founder chairman CEO Mark Benof Mark always get uh great to get Some time with you especially Fresh Off Your earnings call love your earnings Call I mean you always come out blasting On this thing and you had me Thinking about agents agent force I Never heard of this before didn't know What it was I think I got it but let me Hear from from your voice what is this And set the table a little bit on how it Might impact salesforce's business But it's a dramatic transformation and Opportunity for really all of our Customers and it it's very simple Brian Really you know for the last 25 years What have we been doing we help our Customers build and run their sales Forces their service forces their Marketing forces their Commerce forces Their analytics Forces and now we're going to help them Build their agent force and why this is Important for our customers is it's Going to give them a level of tivity and Automation that they have never had Before and number one you just look at This great customer we have Wy and all Of us know Wy The Textbook Company you Know lead their whole industry this is Their moment right now back to school And Wy is selling all these textbooks
And usually what they have to do is Surge their customer service Organization and their sales Organization during back to school of Course but instead what they can do is They can scale up Using agent force and so of course we're Already running through all of our apps All their customer touch points sales Service marketing Commerce all everything that they do It's on Salesforce and you know our data Cloud helping to amalgamate their data And Federate to other data clouds but Now this third layer that we're Unleashing these agents and these agents Can help resolve more than 90% of all These customer inquiries That is the exciting moment for agent Force and that is the exciting moment For all of our customers and it's Simplest for Mark is this is this AI or Or robots working with humans to drive Better outcomes for Businesses well that that's a very good Way to say it you know this is humans With agents driving customer success It's not so unlike you know when I hit The button today to come to the office I Just got in a wh and the wh brought me To the office and that's an basically a Robot or an agent just driving me Autonomously to the office there was no Human involved this is the extension of
Our businesses with these agents who can Resolve these customer service inquiries For us we're working with one of the Largest healthc care companies in the World who has over 20 million patients And one of the largest epic databases All their EMR and we're already Resolving now 90% of all of those Patient inquiries with agent for course That is very exciting um that is you Know a huge level of productivity for a Healthcare organization these doctors And nurses are incredibly burnt out post Pandemic they don't want to have to Answer all your basic health care Questions and instead you're going to be Able to go right to an agent to get Those things resolved this is a a huge Advancement in the ability to not only Augment their employees but to deliver That capable capability of and Productivity Mark it's been a long day For me as I'm sure for you but I want to Make sure I heard this right um on the Earnings call you plan to have a billion Of these agents out by the end of fiscal 2026 I just want to make sure that's Correct and number two how are you Pricing this because to me all this Sounds like a higher margin opportunity But maybe I'm thinking about it Wrong well it's very simple Brian you Know the way that we look at it and you Know we don't have all the answers yet
Of course but you know we look at one of The customers was already deployed you Know Open Table is using agent force and They have 160 million consumers are Going to need 160 agents to talk to all Of them of course it's really only one Agent of course but it's Manifested 160 million times so that you Can make your restaurant reservations or Resolve them or reschedule them or you Know get a make good on a customer Service issue whatever it is and you Know that idea that all of those you Know consumers who work with ADP or all Those consumers that work with open Table or So many of our Customers that it it'll rapidly get to a Billion consumers that we're talking to And and our goal basically is to you Know monetize it probably buy per Conversation so maybe We're um you know charging those Customers a dollar or2 dollars per Conversation something like that so it's A consumption-based product and that That's an incredible new business model For Salesforce do you think this this Should theoretically and I'm sure you'll Talk more about this at dream forest in A couple weeks but this should Theoretically quiet what the street has Been concerned not just with Salesforce A lot of other companies in your space
About monetizing AI because when you're When I hear you say a dollar per Conversation that's real money and that Adds up very Quickly I think a lot of our customers Have gotten so confused about artificial Intelligence of course we have a decade Of uh artificial intelligence Innovation And Salesforce some of the most Important Innovations in AI come out of Our Labs but this quarter we delivered 25 trillion Einstein transactions and Powered more than a trillion automated Workflows and managed 250 pedabytes of Data for our Customers now why this is important Brian and where we have to get our head Around all of this is that a lot of Customers have a false understanding of AI and they think they're having to Build their own models and train their Own models and retrain their own models And DIY their AI do it the himself and This just is not true and they can build This model fine-tune this model create This model manage their data manage Their humans and manage their agents all In one platform Salesforce that is what is exciting About the future of the industry and Technology and I think that for a lot of Customers I've seen a lot of science Experiments I think Microsoft has misled So many customers that they have to do
So much heavy lifting on the technology Side and we're telling them it's you can Do this in clicks not code you're not Going to have to do H have a hyperscaler To retrain you know your models you're Going to be able to do all these things Right inside our platform and that is Exciting for our customers they get real Value from AI now and you won't be Hearing these stories of uh these like Microsoft co-pilots that don't work or These you know AI hasn't delivered for The these customers or that we spent Hundreds of billions of dollars of AI Where's the productivity you're going to See it coming all right out of this one Integrated platform the apps or we call Customer 360 the data Cloud The Amalgamated data Cloud that's Federated Off through our zeroc copy Alliance all These other data sources and then this Agent force platform this is the one two Three about the future of automation of Our customers at Salesforce I mean do You think you know you made that point In the conference call that Microsoft Has disappointed so many on AI I mean is Co-pilot and these various chat Bots are They just gimmicky and they're not Driving the productivity inside Companies that a lot of companies are Are I guess trying to pitch other Companies well number one I I love so Many of these models you know these
Consumer models that you know I I uh use At home I'm sure you have the same Experience you know write me a song Write me a movie script what about this It's like a new level of search in many Ways but I also get a lot of Hallucinations and inaccuracies and you Know we have to deal directly with that In the Enterprise or when we're dealing With a large Healthcare Company you know We want to have basically zero Hallucinations and 100% accuracy that That's our goal and the that's going to Require a lot of techniques and Technology to kind of deliver that Capability to that large Healthcare Organization oh we are actually doing That now they they do not have the Capability or um should they to build And deliver and create their own AI Model to do that it should all be Integrated deeply with their patient Information And to have a whole patient relationship Management system and a Whole Health Cloud if you will that that is our goal That is what we're delivering for that Healthare organization or for a large Bank we're working on one of the largest Banks in the world Royal Bank of Canada Huge customer of ours already and to Really be able to deliver agent force Directly for them and deliver that very High level of accuracy but also in a
Highly regulated environment they have To still comply with all those kyc Inform and and and government Regulations running a huge bank or Financial services organization we can Do all of that inside the platform and Deliver that next Generation capability Of productivity uh for the bank by Delivering the agents and automating the Agents by delivering the data and Deliver and yes humans are not going Away we're going to need to have uh Automation for all of those humans Through those applications and of course They have thousands of call center Workers they have thousands of Salespeople and actually in that case Tens of thousands and they're also going To have um millions of Agents Mark where Do you fall you mentioned regulation Where do you fall on the California AI Safety Bill well I think you can see that this Is a you know a very complex uh um very Complex uh uh situation with AI looking At AI safety it has to be the highest of Everybody's um uh interest to make sure That these AI models do not get out of Control I don't think they are today by The way I don't think we're at that Level with AI I think AI is still at a Very basic level and I think that these Kinds of ideas are incredibly Interesting and need to be fully
Evaluated and that it's uh worthwhile You know I WR write uh and I you know I Own Time Magazine you can see we wrote About this issue yesterday in these Political issues I don't like to take a Specific position because I agreed when I bought time that I would maintain a Neutral stance but you can read the Article in time about this I thought it Was incredibly well balanced and and Clear in in yesterday's issue lastly uh Of course I can't uh go without Mentioning the CFO transition uh I've Gotten to know Amy Weaver for a while a Lot of praise for her on that earnings Call she will be transitioning out of That CFO role but staying on for some Time to help pick the next CFO City put Out a good note or Flash note this Evening saying you know there might be Some new investor concern that Salesforce is going to go back to Investment mode of course Amy has driven A lot of margin expansion done a hell of A job at Salesforce what do you say to Those concerned that um you know Martinin might come off when Amy rolls Out of that Position well I'm deeply committed to This margin expansion I have some very Big goals bigger than we've delivered Already big cash flow goals big Revenue Goals I've laid those out um Amy's a Critical part of our management team but
It's a much larger structure she's been A phenomenal member of that team for 11 Years she was our general counsel I Encouraged her to become the CFO and Take on these goals and I look I'm Looking for a great new CFO I have hired Hydren struggles Jeff Sanders is leading The search I'm looking for somebody Great to take all these metrics to Another level and it's extremely Exciting and I believe that we're going To you know deliver even better Financial metrics in the future you can See in this quarter the numbers are just Remarkable I mean we beat on cash flow Revenue margin crpo all ahead of Expectations delivered 9.33 billion in revenues I don't think Any enterprise software company has ever Done that cash flow was over 892 million 10% year-over-year we also expanded our Operating margin targets for the year But for the quarter we delivered 33.7% that is incredible and that was up By the way 210 basis points Year-over-year that's a record high for Salesforce I have a lot of confidence We'll continue to grow and expand our Financial metrics and continue to Innovate and we will bring in another World class executive whether it's an Internal candidate or an external Candidate and I'm confident in hydri and Struggles process uh to do that with us
And we've done that over 25 years and Amy will continue to be part of the Management team uh going forward as She's going to finish up the fiscal year And then help us on board the new CFO And Mark of course just real quickly Ashley we're not going to have enough Time to give this the time that I would Like but I know this ear call came with A heavy heart for you uh losing two key Board members maybe you could share a Quick story from uh each one of them How' they help grow Salesforce because I I know they meant a lot to you and the Company well Brian I would prefer not to Cry on air because it's definitely been One of the saddest moments of my life The last two or three weeks where two of Our board members have passed away and I Think everyone knows uh these incredible People who were Monumental in our Industry who were created huge parts of Our industry Um incredible leaders um incredible Friends of mine uh Sandy Robertson and Susan was Shiki um people know their Work whether it was the Roberts and Stevens bank or YouTube um but they may Not know that they were also great Fathers and mothers um they were Tremendous friends and confidants conly Arus and I miss them every single day And I'm so glad that I have the Opportunity to send my blessings my
Condolences to their family members um And uh every single day I think about Them right now and so uh I love both of Them so very much well said we'll leave It there uh Mark Mark Benny off Co-founder chairman and CE of sales Salesforce always great to get some time With you we'll see in a few weeks over a Dream Force looking forward to it Brian I can't wait to see a dream force and I Hope we can sit down and have another Great conversation I'd appreciate that Mark thanks so much we'll talk to you Soon
