Core Viewpoint - Salesforce Inc's shares experienced a decline following the release of its fourth-quarter results, which were mixed amid a competitive earnings season [1] Group 1: Financial Performance - Salesforce reported fourth-quarter revenue of $10 billion and earnings of $1.75 per share, with total revenue growing by 7.6% year-on-year and 9% in constant currency terms [2] - Current remaining performance obligation (cRPO) grew by 9.4% year-on-year to $30.2 billion, driven by strength in Data Cloud and AI, along with early renewals [3] - Total revenue guidance for fiscal 2026 is projected to be between $40.5 billion and $40.9 billion, indicating a growth rate of 7.4% at the midpoint, which is below the consensus expectation of 9.2% growth [3] Group 2: Analyst Ratings - Needham's analyst Scott Berg maintained a Buy rating with a price target of $400, highlighting the growth in subscription revenue [2] - JPMorgan's analyst Mark Murphy reiterated an Overweight rating with a price target of $380, noting that while total revenue was below expectations in USD terms, it was ahead in constant currency terms [4] - Guggenheim's analyst John DiFucci kept a Sell rating with a price target of $247, indicating that total revenue missed consensus estimates due to foreign exchange headwinds [6] Group 3: Growth Indicators - Management's guidance for cRPO growth in constant currency terms exceeded market expectations, which is significant as cRPO is considered a key leading indicator for Salesforce [5] - The company is targeting a 32% growth in new annual contract value (ACV) for the full year, a level not seen since 2017 [7]

Financial Data and Key Metrics Changes - The company reported a record revenue of $37.9 billion for fiscal year 2025, representing a 9% year-over-year increase in both nominal and constant currency [75][26] - Q4 revenue reached $10 billion, up 8% year-over-year, with a 9% increase in constant currency [21][75] - Operating cash flow for Q4 was nearly $4 billion, up 17% year-over-year, while full-year operating cash flow reached a record $13.1 billion, up 28% year-over-year [82][27] - Non-GAAP operating margin for Q4 was 33.1%, an increase of 170 basis points year-over-year, while GAAP operating margin was 18.2%, up 70 basis points year-over-year [81][27] - Remaining performance obligation (RPO) surpassed $60 billion for the first time, ending Q4 at $63.4 billion, up 11% year-over-year [83][28] Business Line Data and Key Metrics Changes - Data Cloud and AI annual recurring revenue reached $900 million, growing nearly 120% year-over-year [79][12] - The company closed more than 3,000 paid Agentforce deals in Q4, indicating strong adoption of the new product line [79][12] - Sales Cloud and Service Cloud both achieved double-digit growth in Q4, with Slack included in over a third of deals over a million dollars [62][63] Market Data and Key Metrics Changes - Revenue growth in the Americas was 8% in both nominal and constant currency, while EMEA grew 6% to 7% in constant currency, and APAC grew 10% to 14% in constant currency [76][77] - New business growth was strong in Latin America, Japan, and Canada, while parts of EMEA remained constrained [77] Company Strategy and Development Direction - The company is focused on a unified platform strategy that integrates Customer 360 apps, Data Cloud, and Agentforce, aiming to lead the digital labor revolution [54][15] - The company plans to continue investing in high-growth opportunities, particularly in Agentforce and Data Cloud, while maintaining a disciplined approach to margin expansion [91][90] - The company expects to deliver fiscal year 2026 subscription support revenue growth of approximately 9% year-over-year in constant currency [87] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the growth and innovation seen in fiscal year 2025, highlighting the strong performance across key metrics [9][7] - The management team anticipates that the digital labor revolution could represent a market opportunity ranging from a few trillion to 12 trillion dollars [14] - The company expects to see continued momentum in AI and Data Cloud, with a focus on embedding these technologies into everyday workflows [78][79] Other Important Information - The company executed $7.8 billion in share repurchases and issued $1.5 billion in dividends during fiscal year 2025 [85] - The management team is undergoing a transition, with Robin Washington stepping in as the new Chief Operating and Financial Officer [74][49] Q&A Session Summary Question: Can you provide insights on the Agentforce pricing model and its impact on contract sizes? - Management indicated that the pricing model is evolving from a seat-based model to a consumption-based model, which is expected to expand overall contract sizes and provide significant upside to pricing structures [100][106][118] Question: Is Agentforce creating a halo effect on other products? - Management confirmed that Agentforce is positively impacting the usage of core technology, leading to new workflows and increased engagement across other products [125][128] Question: What is the rationale behind combining the COO and CFO roles? - Management expressed excitement about the new COO and CFO, Robin Washington, highlighting her unique capabilities to manage both roles effectively [134]