Q2 2027 Salesforce, Inc. Earnings Call Transcript
Key Points
- Salesforce Inc (CRM) delivered record revenue and EPS, with CRPO accelerating to 14% year-over-year growth, and generated $1.1 billion in free cash flow, up 81% year-over-year.
- The company's AI business is booming, with AgentForce ARR reaching $1.5 billion and AI/data ARR approaching $4 billion, driven by a 70% quarter-over-quarter increase in accounts with agents in production.
- Salesforce Inc (CRM) announced a strategic partnership with Anthropic to launch Cloudforce, a new product combining the number one AI with the number one CRM, which is expected to unlock significant trapped value for customers.
- Net new AOV growth was the strongest in four years, with seat growth across Agentforce for Sales, Service, and Slack, and attrition near its lowest level ever, directly countering the 'SaaS apocalypse' narrative.
- The company is seeing strong adoption of its premium bundles and flexible pricing models, including outcome-based deals, with bookings from Agent Force One Edition and Agent Force for Apps more than doubling quarter-over-quarter.
- Slack continues to outperform, with its fastest quarterly net new AOV growth since acquisition, and Slackbot has become the fastest-adopted AI product with 1 million active users, up 150% quarter-over-quarter.
- Salesforce Inc (CRM) faces continued volatility in overall license revenue, which partially offsets the strength seen in AgentForce, Data360, and Slack.
- The company's FY27 revenue guidance incorporates a $100 million FX headwind compared to prior guidance, which could pressure future results.
- While the company is encouraged by early signs of recovery in marketing, it notes it is 'too soon to call this a sustainable trend,' indicating uncertainty in that segment.
- The monetization strategy for headless configurations is still being figured out, with management acknowledging they are 'still trapped in some ways in old per user pricing models.'
- Only 5% of knowledge workers using sales and service have upgraded to higher-end premium editions, representing a significant untapped opportunity but also a potential risk if adoption does not accelerate.
- The company's guidance for operating and free cash flow growth remains modest at approximately 4-5% year-over-year, which may lag the strong top-line growth expectations.
At this time, I would like to welcome you to the Salesforce second quarter fiscal 2027 conference call. This conference is being recorded and all lines have been placed on mute to prevent any background noise.
After the speaker's prepared remarks, there'll be a question-and-answer session.
At this time, I would like to turn the call over to Mark Murphy, Executive Vice President of Global Investor Relations. Sir, you may begin.
Good afternoon, and thanks for joining us today on the Fiscal 2027 Second 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, CEO and Co-Founder in Wabin, Washington. Chief Operating and Financial Officer. We also have Patrick Stokes, President, Applications and Marketing, and Miguel Milano, President and Chief Operating Officer, joining us for the Q&A portion of the call. Some of our comments today may contain forward-looking statements that are subject to risks,
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