♪ >>> THIS IS TURNING INTO A GREAT WEEK FOR THE ENTERPRISE CLOUD SOFTWARE PLACE. THAT'S BECAUSE TONIGHT SALESFORCE REPORTED A TREMENDOUS QUARTER, SO GOOD IT'S HARD TO REMEMBER THAT A YEAR AGO THIS COMPANY WAS UNDER SIEGE BY ACTIVISTS INVESTORS WHO WANTED TO GET RELIGION ON GENERATING MORE PROFITABILITY. THEY CERTAINLY DELIVERED. TONIGHT'S SALESFORCE REPORTED A SOLID TOP AND BOTTOM LINE BEAT WITH A MUCH BETTER THAN EXPECTED OPERATING MARGIN, AN INCREDIBLE CASH FLOW NUMBERS AND THE DATA CLOUD SAW A MAJOR ACCELERATION OF 22% YEAR OVER YEAR AND WHY THE STOCK IS WHIRRING AFTER ARTS. LET'S TAKE A LOOK WITH MARK BENIOFF, THE CO-FOUNDER AND CEO OF SALESFORCE TO LEARN MORE ABOUT THE QUARTER AND WHAT COMES NEXT. MR. BENIOFF, WELCOME BACK TO "MAD MONEY." >> JIM, IT'S ALWAYS GREAT TO BE WITH YOU. >> OH, SAME, MARK. I'VE GOT TO TELL YOU A YEAR AGO, YOU KNOW WHAT, HE WON'T DO A BIG FREE CASH FLOW NUMBER. HE'S NOT LOOKING AT THE CURRENT REMAINING PERFORMANCE OBLIGATIONS AND NOT LOOKING AT THE BOTTOM LINE. THERE'S 4 BILLION MORE THAN PEOPLE THOUGHT, FREE CASH FLOW, 1.7 BILLION AND PEOPLE WERE LOOKING FOR $161 MILLION. HOW IS THIS POSSIBLE? >> WELL, JIM, YOU CAN SEE THESE NUMBERS, THESE ARE MONSTER NUMBERS AND IT'S A MONSTER YEAR. IT'S BEEN INCREDIBLE AT SALESFORCE, AND THE TRANSFORMATION HAS BEEN ONE OF THE BIGGEST I'VE EVER SEEN IN SOFTWARE. I MEAN, THE QUARTER YOU CAN SEE, THESE NUMBERS, A FEW COMPANIES HAVE EVER DELIVERED NUMBERS IN SOFTWARE THIS SIZE AND SCALE AND NOT JUST IN REVENUE BUT IN CASH FLOW AS WELL EXACTLY LIKE YOU'RE SAYING. THE CASH FLOW NUMBER I THINK IS UP 1,000% YEAR OVER YEAR. IT'S INCREDIBLE. >> EARNINGS PER SHARE OBVIOUSLY MUCH BETTER THAN EXPECTED BUT THE NUMBERS I REALLY COUNT ON, THE ONE EVERYONE IS MEASURING BY ARE THOSE TWO. ALSO MEASURING, ONE-GAME OF THE THINGS THAT HAPPENED THIS QUARTER WHEN I HEAR SOMEONE DOES A LOT OF BUSINESS WITH AMAZON IT'S WORTH 10% IMMEDIATELY TO THEIR STOCK. IT POPS UP. I KNOW YOU'VE ALWAYS HAD A GOOD RELATIONSHIP BUT YOU'RE DOING A HUGE AMOUNT OF BUSINESS NOW WITH AMAZON WEB SERVICES. >> WELL, YOU KNOW THAT WE HAVE A GREAT RELATIONSHIP WITH ANDY CHASSIE AND I THINK HE'S ONE OF THE BEST CEOs IN THE WORLD. THE PARTNERSHIP THAT WE'VE HAD WITH THEM HAS GONE ON FOR YEARS AND YEARS. A HUGE CUSTOMER OF SALESFORCE, BY THE WAY. AMAZON USES SALESFORCE TO MAINTAIN THEIR CUSTOMER RELATIONSHIPS FOR B TO B AND B TO C. THAT'S HOW ALL THIS GOT STARTED. WE GOT ALL OF THEIR CUSTOMERS ON JOURNEYS, AND WE'RE PROVIDING OUR EINSTEIN CAPABILITIES HAND NEW DATA CLOUD TO BEING A CELEBRATE THEIR GROWTH AND IT'S WORKING INCREDIBLY WELL. JUST AN INCREDIBLE SUCCESS STORY FOR SALESFORCE. >> THERE'S A NEW CEO AT A COMPANY I RESPECT AND HAVE USED, ADP, MARIA BLACK. IT SEEMS LIKE SHE UNDERSTANDS HOW TO USE EINSTEIN BETTER THAN ANYONE TO KEEP HER GAZILLION CUSTOMERS HAPPY. WHAT IS SHE DOING WITH YOU? >> MARIA BLACK IS A FANTASTIC CEO, PROBABLY ONE OF THE BEST IN THE INDUSTRY, AND I'M SO GLAD THAT SHE IS AT ADP, A GREAT COMPANY AND A BRAND OF SALESFORCE. WE'VE WORKED WITH THEM FOR LITERALLY DECADES, AND THEY ARE DOING JUST AN INCREDIBLE JOB WITH REALLY US IN THREE AREAS. FIRST, IT'S A MONSTER DEAL FOR US FOR THE QUARTER. YOU KNOW THAT, JIM. NUMBER TWO, THEY ARE REALLY USING OUR EINSTEIN GPT TO CREATE THIS KIND OF CO-PILOT RELATIONSHIP TO MAKE THEIR SALES REPS MUCH MORE SUCCESSFUL. WE'RE SO EXCITED ABOUT THAT, AND THEY ARE USING OUR DATA CLOUD AS WELL WHICH IS GOING TO HELP THEM TO REAL GET THEIR DATA IN SHAPE SO THEY CAN REALLY ACCELERATE WITH THIS AI REVOLUTION THAT'S GOING ON. >> ARE YOU FINDING THAT PEOPLE ARE USING EINSTEIN TO MAKE IT SO THAT THEY HAVE A LOT MORE TIME TO BE IN TOUCH WITH THE CUSTOMERS AND A LOT LESS TIME TYPING, A LOT LESS TIME DOING ADMINISTRATIVE WORK, THAT YOU'RE DOING IT -- WHAT IS THE MULTIPLIER THAT YOU ARE -- FORCE MULTIPLIER OF EINSTEIN? >> JIM, YOU'VE GOT THREE EXCITING DRIVERS GOING ON, WHAT YOU CALL MULTIPLIERS. NUMBER ONE IS, JIM, DEALS $1 MILLION AND ABOVE THIS QUARTER ARE UP LIKE 80%. IT'S INCREDIBLE. THESE VERY LARGE DEALS, I HAVEN'T SEEN NUMBERS LIKE THAT IN SO LONG, AND I'LL TELL YOU WHY. IT'S BECAUSE COMPANIES ARE REALLY ADDING ALL OF THESE GREAT PRODUCTS TOGETHER INTO A SUITE, AND IT'S NOT JUST OUR SALES CLOUD AND OUR SERVICE CLOUD AND MARKETING CLOUD, BUT IT'S ALSO TABLEAU, SLACK AND MULE SOFT AND EINSTEIN GPT AND THE FINALCHER ON THE TOP OF THE CAKE IS OUR DATA CLOUD. THAT'S AN INCREDIBLE NEW PRODUCT, AND I THINK IN THE QUARTER, JIM, ACTUALLY WE DID 1,000 NEW DATA CLOUD CUSTOMERS. ISN'T THAT AMAZING? ADD TO THAT ANOTHER HUGE DRIVER FOR THE QUARTER IS OUR EINSTEIN GPT CO-PILOT TECHNOLOGY. THIS IS ALSO AMAZING WHERE WE DID 550 EINSTEIN GPT CO-PILOT DEALS FOR CUSTOMERS, SO THESE ARE CUSTOMERS WHO ARE REALLY PUTTING AI TO USE, AND THAT'S WHAT I THINK IS REALLY STARTING TO DRIVE OUR GROWTH IN EXCITING NEW WAYS. >> EVERY VERTICAL. I KNOW FINANCE IS SUPPOSED TO BE LATE. HOW ABOUT RETAIL? WHO IS PUTTING THE MONEY IN MANUFACTURING, WHERE ARE YOU SEEING IT? >> JIM, THIS IS REAL ACROSS THE BOARD. I JUST GOT OFF A PLANE AS YOU KNOW. I'VE BEEN IN TOKYO ALL WEEK. >> RIGHT. >> I COULDN'T BELIEVE THE REACTION. EVERY SINGLE CUSTOMER WAS IMPLEMENTING DATA CLOUD. WE DID OUR WORLD TOUR YESTERDAY AND DID THE KEYNOTE, GOT ON THE PLANE, GOT OFF THE PLANE, I'M HERE. YOU KNOW, WE HAD THOUSANDS OF CUSTOMERS INTERESTED IN DEPLOYING DATA CLOUD IN JAPAN BECAUSE THEY ALL NEED TO GO AI. YOU'RE NOT GOING TO GO AI IN YOUR ENTERPRISE UNTIL YOU GET YOUR DATA TOGETHER. YOU'RE NOT USING THE REDDIT DATA OR THE INTERNET DATA THE WAY CHAT GPT IS FOR YOUR ENTERPRISE. YOU HAVE TO GET YOUR DATA TOGETHER, AND THAT'S WHY SALESFORCE DATA CLOUD IS SO IMPORTANT AND THAT'S WHY WE DID THOSE THOUSAND DATA CLOUD DEALS IN THE QUARTER, AND WHEN YOU LOOK NOW AT WHAT WE'VE DONE EVEN IN JUST A SHORT PERIOD OF TIME WITH EINSTEIN GPT WHICH IS OUR CO-PILOT PRODUCT, 17% ALREADY OF THE FORTUNE 100 ARE ALREADY NOW THESE EINSTEIN AI CUSTOMERS. THIS IS THE NEW TECHNOLOGY, NOT -- I'M NOT EVEN TAKING INTO CONSIDERATION 1 TRILLION EINSTEIN TRANS ACTIONS WE DID THIS WEEK WHICH IS OUR PREDICTIVE AND GENERATIVE LAYER, THE WHOLE TRUST LAYER. THESE ARE JUST ACROSS THE BOARD NEW CUSTOMERS. >> SO A TRILLION A MONTH AND NOW IT'S A TRILLION A WEEK AND WHEN I SEE YOU NEXT, IS IT REALLY POSSIBLE THERE COULD BE A TRILLION A DAY? >> WELL, JIM, THIS IS JUST AN INCREDIBLE OPPORTUNITY WHAT'S HAPPENING NOW, AND I THINK WE'RE GOING TO SEE SOME UNBELIEVABLE OPPORTUNITIES WITH EINSTEIN AND WE'RE GOING TO SEE SOME INCREDIBLE CAPABILITIES NOT JUST WITH PLEA DICTIVE AI BUT WITH GENERATIVE AI AS WELL. >> NOW, IS IT POSSIBLE THAT YOU YOURSELF ARE USING IT BECAUSE WHEN I SAW THE HEAD COUNT, YOUR HEAD COUNT IS DOWN SUBSTANTIALLY FROM A YEAR AGO AND YET YOUR REVENUES ARE EXPLODING, SO YOU'RE USING IT, TOO. >> LOOK, JIM, IF YOU LOOK AT THE EMPLOYMENT DATA AND YOU LOOK AT WHAT ADP IS SAYING WHAT, ADP IS SAYING IS THAT WE HAVE INCREDIBLY LOW EMPLOYMENT. WE'RE GOING TO NEED MORE PRODUCTIVITY, WHERE IS THAT GOING TO COME FROM? IT'S GOING TO COME FROM AI. WE ALL NEED TO USE THE AI TECHNOLOGY TO TAKE ADVANTAGE OF BASICALLY INCREDIBLE, YOU KNOW, OPPORTUNITIES IN THE LABOR MARKET, SO IF WE'RE GOING TO BE ABLE TO MAXIMIZE WHAT WE HAVE IN OUR COMPANIES WE NEED TO DEPLOY THIS AI TECHNOLOGY TO. DO THAT, WE HAVE TO DO A NUMBER OF THINGS. ONE OF THEM IS GOING TO BE USING THESE DATA CLOUDS SO THAT WE CAN GET OUR DATA TOGETHER. THAT'S OUR FUNDAMENTAL MESSAGE TO OUR CUSTOMERS. YOU SAW THAT AT DREAMFORCE AND HOW SUCCESSFUL THAT WAS, AND IT'S SUCCESSFUL REALLY ALL OVER THE WORLD. I MEAN, I -- I'M SO EXCITED ABOUT WHAT ALL OF OUR CUSTOMERS ARE DOING WITH OUR DATA CLOUD. >> HOW SUCCESSFUL HAVE YOU BEEN IN THE WORLD OF OPEN AI? I SAW YOUR TREATS. I KNOW THAT THEY HAVE A LOT OF GOOD PEOPLE. HAVE SOME OF THEM FELT LIBERATED AND WANT TO GO TO SALESFORCE? >> WELL, YOU'RE RIGHT. I -- I AM RECRUITING AGGRESSIVELY ARTIFICIAL INTELLIGENCE ENGINEERS. I'M RECRUITING AGGRESSIVELY ALL KINDS OF GREAT ENGINEERS AND SOME OF THOSE FOLKS THAT WE'RE ABLE TO GET BACK ARE ACTUALLY ARE EMPLOYEES BEFORE THERE ARE REBOUNDS AND WE'RE EXCITED TO KIND OF GET THAT OPPORTUNITY. THAT'S SO EXCITING FOR US WHEN WE GET THAT BOOMERANG COMING BACK AT SALESFORCE. WE'VE HAD A TREMENDOUS SUCCESS WITH THAT, AND LISTEN. IF YOU'RE A SALESFORCE ALUMNI AND YOU'RE AT OWE HANA AND WANT TO COME BACK, YOU KNOW HOW TO EMAIL ME PERSONALLY AND I'LL TAKE CARE OF IT. >> YOU SENT ME A BOOK "GHOST FLEET" NOT LONG AGO WHICH MADE ME WORRIED THAT PERHAPS THE CHINESE COULD BE MORE THAN LET'S SAY ECONOMIC COMPETITORS. WHEN YOU SAT DOWN WITH PRESIDENT XI RECENTLY, DID YOU FIND HIM MORE FRIENDLY GIVEN THE FACT THAT HIS NATION'S ECONOMY IS SINKING AND OURS IS ON THE RISE? >> JIM, I WAS SO GRATEFUL THAT PRESIDENT XI CAME TO SAN FRANCISCO TO OUR GREAT CITY, AND I WAS SO GRATEFUL FOR A SUCCESSFUL APAC CONFERENCE. WE HAD ABOUT 35 HEADS OF STATE. WE HOSTED MANY OF THEM AT SALESFORCE TOWER SHOWING THEM THIS VISION OF ARTIFICIAL INTELLIGENCE AND I FELT THERE AND ALSO TELL YOU AT THE UK SAFETY SUMMIT WHICH I ALSO ATTEND IN THE QUARTER, JIM, THE CHINESE MINISTRY CAME AND TO SEE CHINA PARTICIPATING ON THE WORLD STAGE AND REALLY HAVING THAT COLLABORATIVE RELATIONSHIP WITH -- WITH US AGAIN. THIS IS SO IMPORTANT FOR EVERYONE GOING FORWARD, AND I'LL TELL YOU THAT IN THE QUARTER WE ALSO DEPLOYED AT ALI BABA FOR THE FIRST TIME INCLUDING GETTING CARING AND LVMH UP AND RUNNING ON THE ALI BABA CLOUD. >> THESE ARE ALL THE GREAT COMPANIES. CAN YOU POSSIBLY SEE MARC BENIOFF, OBVIOUSLY AN AMAZING QUARTER. CONGRATULATIONS. I THOUGHT THIS IS AWESOME. >> IT'S INCREDIBLE. >> CONGRATULATIONS. >> WE'RE GOING TO -- JIM, YOU LOOK AT NOT JUST $8.7 BILLION QUARTER, WE'RE GOING DO 34.8 BILLION. >> EVEN A DAVID FABER WILL BE IMPRESSED. THAT'S REALLY SAYING SOMETHING, ISN'T IT? I'LL SEE YOU TOMORROW ON A REPLAY. >> BE NICE TO DAVID FABER, JIM. COME ON, HE'S A GREAT GUY. >> I PROMISE. IT'S MARC BENIOFF, CO-FOUNDER AND CHAIR AND CEO OF SALESFORCE AND CONGRATULATIONS ON A GREAT QUARTER. >> WE LOVE YOU. LOVE HAVING YOU HERE. >> I'LL SEE YOU SOON. THANK YOU. >> BYE-BYE. >>> COMING UP, HOPES ARE HIGH. CAN THIS COMPANY TURN FLURRIES INTO AN EARNINGS BLIZZARD? SNOWFLAKE JOINS CRAMER NEXT.
