Salesforce, Inc. Status update

Good morning, and thank you for joining us for our Q2 FY 2027 IR webinar on product adoption and momentum. I am Mark Murphy, EVP of Global Investor Relations, here with Valmik Desai on the far end, representing the IR team for Salesforce. We are very grateful to be joined by Bill Patterson, President and Chief Commercial Officer, sitting next to Valmik, as well as Conor Marsden, President of Sales and Chief Consumption Officer. These are two very dynamic and impactful thought leaders of the industry. Gentlemen, first off, thank you for joining us this morning.

Morning. Thank you. Great to be here.

Our goal with this is to address investors' most common questions and topics leading both into and out of our earnings report last week. Those are going to include AI monetization, AIforce, and other product and partnership announcements, including the one relating to Claude, infusion of AI across the platform. We are going to give you a couple customer stories to try to demystify what is actually happening on the ground. Before we begin, I want to read you this disclaimer. 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 or outcomes 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 or outcomes 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. Our plan is to start with a brief presentation, and then we are going to jump into your questions. Please, at any time, when anything crosses your mind, feel free to submit your questions in the chat. With that, I am going to hand it over to Conor and then Bill.

Fantastic. Thanks, Mark, so much. I am so excited to be here today to talk about some of the momentum that we are having in the market today and really helping to turn our customers into agentic enterprises. We have probably shown this slide to you a lot, and I am going to provide some context on what we see with our customers today. First, to ground us, as we have been in this agentic revolution, there is really four key aspects to make any agent successful. It is trust, action, agency, and interface. We have re-architected our entire platform to be able to meet the moment in today's market. Starting with trust, trusted context, and data that is delivered in a secure way with the right user permissions, and of course, with zero data retention as we start to integrate with the LLMs.

Our action layer, that is our application layer that our customers have used for years and years, Service, Sales, Marketing, Analytics. This is where we have our standard workflows, business processes, or custom workflows and business processes to meet the unique needs of our customers. For example, Tableau today has 33 million semantic layers built in that we can now extend into our layer of agency. You are probably seeing some new names on the list, Casey and Hunter and Marshall. As we have continued to extend our agentic footprint, we now have out-of-the-box use cases that our customers are leveraging to drive our agentic footprint. For example, Casey. Casey takes advantage of the best of our Service Cloud application and the best of our data footprint underneath to provide great resolution for our customers with no human interaction.

But when you do need to pass it over to a human, it is passed with the context of that conversation, so the human can pick up with their own agent to help solve that customer problem. All of this is extended into our headless interfaces. Whether that be our traditional Lightning interface or Coworker, which is our fastest-growing AI product that we have had to date, or Slack, or Teams, or this great announcement that we made with Anthropic with Claudeforce, being able to take the best of Claude to create custom interfaces that combine the best of Salesforce and the best of other applications into dashboards, analytics, and purpose-built views into your data to help people get work done faster. A great example of this is SharkNinja. SharkNinja is a great commerce customer, service customer, Data Cloud customer today on the platform.

They launched a service agent together with our shopper agent and saw a 6% increase in conversion. But then they wanted to build their own custom agent, an unboxing agent. This unboxing agent, when you opened up one of their espresso machines, would help walk a customer through how to set up the machine, how to configure it, how to make your first espresso, how to order any consumables for that item. It required each layer. It required the agency layer, it required the service layer, and it required the trust layer with Data Cloud, all uniquely positioned. They saw a 93% resolution rate for the customers who used that agent, and only 7% had to be promoted to a human. So that represented a better customer experience and significant cost savings.

What is unique about our platform today is that when we look at the data lakes and the hyperscalers, they may have a data layer and they are building out an agency layer, but they do not have an application layer today. Or if you look at the frontier models, they certainly have an agency layer that they are building, but they do not have an application or a data layer, and really understanding the metadata and the context and the semantics of the data in which they are working out. The traditional application providers, they may be building an agency layer on top, but they do not have the robust data layer that we have underneath. We are uniquely positioned in that we have all four, and all the providers wish that they had Slack today to drive AI together with your employees and the marketplace today.

Through this investment, we are seeing our agentic footprint rapidly expand. When I started as a chief consumption officer in February to make sure our customers are getting value off their deployments, it was really about Slackbot, our A4X, which is our internal agents, and Agentforce, which was the foundation for our external agents that we were providing into the marketplace. In H1 through both organic and inorganic innovation, we brought Piper and Marshall, our Momentum acquisition for conversational AI for our salespeople, and then Coworker, which we launched at the tail end of H1. That is going to rapidly expand into H2, with our pending Fin and Contentful acquisitions, our Marshall, Albert, which is going to be taking the best of Slackbot, but extending it to non-Slack environments.

Hunter, Casey, Paige, Carter, just to name a few, and then all powered with our headless and Claude applications. What is really interesting is we have 10,000+ customers today that are uniquely using one of our AI products. Now we are seeing significant momentum as we are having more success of people adding a second, third, and fourth AI solution from Salesforce. So we can continue to sell into our base and driving new customer acquisition, which roughly doubled since the beginning of February, the number of customers who had our AI products in production. But now we can start to cross-sell into that base of customers to show more value from an agentic standpoint from Salesforce. What this really has helped us lead to is fantastic financial results. Our Agentforce and data ARR grew by 200+% to $3.9 billion.

Our Agentforce ARR is up 200% to $1.5 billion. Most impressively, this is a measure of value and the work being done on the platform, we saw a 97% increase of our AWUs to $7 billion. We get asked the question all the time, who is using our platform and is it old industry, new industries? Nine out of the top 10 AI native companies have chosen Salesforce to be their central nervous system and their brain for running their operations today. What is another thing that has enabled some of the success? One of the things we talk a lot about here at Salesforce is speed to value with our customers. We have made a lot of really smart investments to really unlock the value for our customers. Starting on the right-hand side of the screen are builders. Builders are our version of FTEs.

We have roughly 600 today in the market that are all embedded within inside of our sales team, working hands-on board with our keyboard, and we are going to be more than doubling this investment towards the end of the year. We really saw the value in out-of-the-box agents. That is the Casey, Hunter, Piper, because when we have an out-of-the-box agent together with our apps and our data layer, we are really able to drive fast time to value and get our agents up and running in 30 to 45 days. We wanted to unlock the entire developer community. We launched Agent Script, which allows us to plug in Agentforce into Claude or Codex so that they can use the development environment of their choice and drive deployment with inside of Agentforce. That is why we are seeing the time to deploy significantly improve.

Just one other aspect I want to talk about. All these, since we have agentified every layer of our platform, for our traditional application, sales and service, we are able to use these coding tools, Claude and Codex, to actually configure our Salesforce environment, and we are seeing a 40% improvement on how quickly we can get our customers onto our platform. One large major global retailer that we are working with needed to do a contact deployment with agents on the front end. Their internal engineering team gave them a quote that it was going to be 35 weeks to deploy a custom build of that solution. They chose Salesforce. We were able to get it live in six weeks. It is phenomenal about how we can use the tools to deploy our platform, to bring agents along for the ride, and really turn them into an agentic enterprise.