SALESFORCE: THE AGENTFORCE TRANSITION

CEO Strategic Memo

June 2030 | CEO Edition

Our stock is trading at 29x earnings. The market is betting that Agentforce becomes a material business without cannibalizing our existing CRM business.

This is a difficult needle to thread. We need to execute flawlessly.

THE STRATEGY

Pillar 1: Protect Core CRM Business - Agentforce is positioned as an "addition" to CRM, not a replacement - We bundle agents with CRM licenses (charge premium) rather than as separate product - This makes Agentforce adoption feel like upgrade revenue, not replacement

Pillar 2: Drive Agentforce Adoption - Target 35%+ of CRM customers using Agentforce by 2033 - Each Agentforce customer pays $500K-2M annually (vs. traditional licensing model) - This creates migration path: start with CRM, add agents, potentially replace some users over time

Pillar 3: Manage the Transition - Growth Rate Guidance: Maintain 16-18% growth despite cannibalization - Margin Guidance: Maintain 65%+ software margin as agent adoption grows - This requires: CRM base growth + successful Agentforce attach + pricing power

THE FINANCIAL MODEL

2030 Actual: $40.2B revenue, 65% software margin 2035 Target: $52-54B revenue (7% CAGR), 68% software margin

This requires: - Core CRM growth: 8-10% (despite cannibaization) - Agentforce revenue: $6-8B by 2035 - Blended growth: 7% CAGR

Achievable, but requires perfect execution.

THE COMPETITIVE THREAT

Microsoft (Dynamics), Oracle (NetSuite), and SAP are also building AI agents. We have first-mover advantage but must maintain it through superior product quality and customer success.

THE 24-MONTH PLAN

2030: - 500+ customers on Agentforce - $550M Agentforce revenue run rate

2031: - 1,500+ customers on Agentforce - $1.8B Agentforce revenue run rate - Prove no significant cannibalization of core CRM

2032: - 3,500+ customers on Agentforce - $4.2B Agentforce revenue run rate - Be positioned as clear Agentforce leader