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Salesforce Inc (NYSE:CRM) presented its strategic vision at the Jefferies Public Technology Conference on Thursday, 29 May 2025. The company emphasized its focus on artificial intelligence (AI) and data integration, despite facing concerns about slowing growth in some sectors. The discussion highlighted Salesforce’s commitment to innovation while addressing economic challenges.
Key Takeaways
- Salesforce is focusing on AI and data integration to drive future growth.
- The acquisition of Informatica aims to enhance data capabilities.
- Despite deceleration in some sectors, the company remains optimistic.
- Pricing strategies for AI are evolving, offering flexible models to customers.
- Salesforce aims to expand its product applications beyond customer service.
Financial Results
- Current Remaining Performance Obligation (CRPO) exceeded expectations.
- Guidance was raised, with foreign exchange benefits playing a significant role.
- Concerns were noted regarding deceleration in sales, service, and commerce growth.
Operational Updates
- AgentForce has 8,000 customers, with half currently paying for the service.
- The product is in early development stages, showing significant growth potential.
- Salesforce is updating all applications to incorporate agent capabilities.
- Data Cloud is the fastest-growing organic product in Salesforce’s history.
- The Slack self-service business reported strong quarterly performance.
- The small business segment in the U.S. demonstrated robust growth.
Future Outlook
- AgentForce is expected to expand into employee-facing and industry-specific solutions.
- Salesforce plans to integrate AgentForce with data and metadata across applications.
- Service Cloud’s scope will broaden to include employee service and IT support.
- The company is prepared to navigate economic headwinds with a diversified portfolio.
M&A and Data Strategy
- The Informatica acquisition is strategic for enhancing data lifecycle management.
- Informatica will work with MuleSoft to extract and transform data accessible through APIs.
- Salesforce is partnering with Snowflake, Databricks, AWS, and Google for data access.
Pricing Strategy for AI
- Salesforce offers flexible AI pricing models, including conversation-based and per-user options.
- The company provides flex credits for various monetization methods.
- Flexibility is crucial as the industry continues to determine the best pricing models.
Q&A Highlights
- MuleSoft and Informatica complement each other by providing API access and data transformation.
- AgentForce is seen as expanding the total addressable market, not reducing customer seats.
- Salesforce remains attentive to customer feedback to enhance Data Cloud capabilities.
- The company is confident in its diverse portfolio and geographic reach to weather economic challenges.
In conclusion, Salesforce’s presentation at the Jefferies Public Technology Conference highlighted its strategic focus on AI and data, aiming to enhance customer success and drive innovation. For a detailed understanding, readers are encouraged to refer to the full transcript.
Full transcript - Jefferies Public Technology Conference:
Unidentified speaker, Host: Thanks everyone for joining Salesforce. Bill is a regular here. Thanks for coming back. Thanks Val and the team for coming. Val’s in the front row here as well.
And you got the team here, so thanks. I know it’s hard to come off an earnings print and come right into this. But it’s a great, great time to be here. And Bill has been with the company since 2017. He was prior at Microsoft for fourteen years, so has two of the best playbooks you could have to run strategy.
Bill, Salesforce Executive, Salesforce: Yeah, thanks for having me. It’s always fun to do this the day after earnings. I think we did this Q1 last year at this time. So what a day to sort of be back with you all.
Unidentified speaker, Host: I think the stock was down 15. We’re down five. So at least it’s getting better. Next year, we’ll be flat to maybe up. There’s room from here.
Bill, Salesforce Executive, Salesforce: There’s room from here.
Unidentified speaker, Host: Maybe we just start on the quarter. And I think CRPO was strong, was ahead of the street. You raised guidance, albeit a lot of it was on FX. But I think there were a lot of good things to take, and I think there were a lot of questions about sales, service, and commerce all decelerating at a pretty quick rate. And so I think that’s caused a lot of this concern today.
And can talk about the positives and the concerns that are on investors’ minds in the room here.
Bill, Salesforce Executive, Salesforce: Sure. I think, as you said, top line narrative was a very positive outlook for the company. And how we see the macro environment, whether kind of in still a measured environment for enterprise software, just largely speaking. But I do think the strengths really, you know, when you think about data and the data strategy, and I’m sure you’re gonna ask me a question about informatic at some point today, so I’ll cover that. But, know, when you think about data and you think about AI and you think about agent force and sort of this this opportunity that we see around digital labor, this is one of the biggest transformations, I think, for enterprise software’s future that we’re kind of living in and going through and just on the precipice of.
So I think, you know, from a overall sort of company direction, strategy, sort of path of travel perspective, the days ahead of us are really quite exciting. And I can tell you the energy in our workplace forget stock in stock performance, because I think that’s always temporal but the energy and the excitement that you see in our developers and partners and customers has never been higher. And I think that’s really what gives us a lot of excitement for the print that Mark and Robin went through yesterday. But yeah, lot of change. And I think really exciting to see that road ahead, given kind of the new innovations that we have both organically as well as inorganically through the deal we announced this week.
Unidentified speaker, Host: What when you think about kind of the most exciting aspects when you talk about this energy, how would you highlight the most exciting aspects that you see into this fiscal year?
Bill, Salesforce Executive, Salesforce: Yeah. Well, I mean, first off, it starts and ends with the combination of AgentForce and Data Cloud working together. I think it’s really been surprising to us the synergy between both of those assets. We think of Data Cloud as super strategic because a lot of the world of consumer AI has been trained on public internet. Enterprise data is very different.
It’s ugly. It’s messy. And it’s in different formats and different systems. Some of it’s locked behind different applications. Some of it’s in different data lakes.
And so Data Cloud has given rise to our ability to harmonize enterprise data around the customer like never before. And I think what’s so exciting about Informatica, and this is really from the probing and the curiosity of our customers, well, how do we get more data from other systems like Product three sixty or Asset three sixty or Policy three sixty also harmonizing so that Gates access these agents? And that’s really the gift that Informatica provides our company is the ability to take years of expertise in creating customer 360s and now starting to create new 360s across the enterprise. And doing so in a safe and secure and compliant manner, which I think is also part of the the world of enterprise data that often gets overlooked when you think about the world of consumer data. So this sort of moment, I think, has been really about us leaning in, listening to customers, listening to what their creativity is sort of asking for, and us really being that customer centered company, working with them to really transform our products and to help them unleash this power of not just data, but data for the purpose of driving better business outcome, which is exactly what we’ve been experts in for twenty five years.
So this is sort of like one of those moments that we’re kind of going back to our start, which is simply about helping customers get better at working with their customers and helping them transform the way they engage with new information and new access to data like never before.
Unidentified speaker, Host: You were very patient with Informatica. There was a first date, and that date didn’t go to a wedding. But you waited, but I think you saved $2,000,000,000 So you’ve been, as Mark called it, I think he called it I forget the exact word he used, but were patient, and it was good price. The question we get is there’s two questions. One is, it sends shivers up everyone’s spine when everyone sees you back in big M and A, because they worry that, is that a signal that organic growth is slowing?
And then second, I can rent a plumber. I don’t have to own a plumber. So everyone says, why don’t you the power of informatic was neutrality, so do you ruin their neutrality by owning them?
Bill, Salesforce Executive, Salesforce: Great question. First off, I think the answer is that’s a responsible M and A framework in action, actually being more patient around the right timing for these kind of big things to sort of come together in the right moments. And I do think the timing now was right. And I think that the catalyst of that wasn’t so much about where their performance was in this moment in time. It was really, like I said, as a probing of our customers who want to do more with this sort of AI moment.
I don’t think you can do that by renting a plumber. Don’t really know where to go with that analogy further. But it is really about you think about the sovereignty of data, which is the world is becoming more sovereign. And so we actually have to think about getting access to the data in ways that we can align our policies and our our our sort of access to that data. So it it works on one framework for our customers.
Second, the speed in which this data is sort of expected to produce results for enterprises, especially when it’s sort of customer facing. Customers don’t like to wait on hold on the phone. They don’t like to wait on hold for an agent to get access to that data that might be metered through an API. And so the ability to sort of work on this data integration platform and this data sort of extraction platform and data governance platform and combine it in real time with the CRM sort of dataset allows us to sort of take our agent technology and and and bring it to new heights. Because, again, we work on things that work on customer expectation time, not just can a query complete because it’s an API available.
So I do think that’s why partnerships serve a purpose. But when you actually bring these assets together and you think about a future of an enterprise dataverse, this is going to be, I think, really powerful to unleash the next wave of innovation for sales, for servers, for marketing, for commerce teams.
Unidentified speaker, Host: Explain we get the question of, how do MuleSoft and Infa live together? What are their roles in the household? How does that work? Is there an easy way to frame it where
Bill, Salesforce Executive, Salesforce: Yeah, I think, first off, MuleSoft is an incredible technology for API access and governance across an enterprise. What Informatica provides is great technology, the world’s best technology, at extracting data from lots of different data sets, transforming that data for access to modernized endpoints, and then making it accessible or available through an API like ImmuleSoft provides. So the way that we see it is this now provides Salesforce assets throughout the entirety of the data lifecycle, whereas before, it might have just been the API but not the extraction side of that data. So I think that the assets between Informatica, when it closes, MuleSoft, Data Cloud, and then think about on the front end, like Tableau, there’s no better enterprise platform for data management or data lifecycle than what Salesforce will offer our customers. And that’s what they’re asking us for.
I was with a customer two weeks ago, a mid market insurance company in Midwest. Without even probing, they’re like, do you guys work with can get AgentForce to work with Informatica data layer and the metadata around these agents? And we’re like, yeah, that will be something we can do very easily coming here shortly. So I think this is the kind of thing that, because of the size and scale that Informatica is in use, it’s also going to open up a world of data that has just been accessible, like I said, only through APIs before, but now allows us to create great applications on top of this new data set.
Unidentified speaker, Host: They weren’t the fastest growing company, but they’re good margins. But maybe the move to cloud amassed some of the growth. But when you think about, it seems like you and your team could probably massively accelerate the growth in Informatica based on where they’re at.
Bill, Salesforce Executive, Salesforce: Look, they’ve been through different modes in their life cycle, obviously being private and then going back public, where they had to do a lot of cleanup on their transformation to cloud. And so we’re very happy about that journey that they’ve gone through. But I think specifically, what excites us most is not about where they are, it’s sort of where we can go together. And I think that’s definitely something that as soon as we kind of the announcement sort of came out, again, the phones were sort of ringing off the hook for us for, okay, great. Now we can really make this our customers are saying to us, now we can really make this come together.
And that’s what I think is sort of a sign to point to for our future.
Unidentified speaker, Host: Agent Force, you mentioned 8,000 customers, half paying. Were reference abilities building quickly? I mean, How would you characterize where we’re at with age and force today? Is there a mile marker, an inning? Do you think about the positioning of it seems like super early.
Don’t know the right analogy or how you think
Bill, Salesforce Executive, Salesforce: I hate to use sports analogies, but we are sort of in inning one of this game. Baseball’s nine innings, for those of you that don’t follow the analogy. But we’re in inning one. And I think a lot of this means that we’re sort of in the opening stanza of this AI moment. A lot of experimentation continues to sort of occur in our customers.
And what’s been so awesome to see, companies like OpenTable started very early with us on the on the agent force journey, where right down the middle of the fairway I’m using now a second sports analogy.
Unidentified speaker, Host: We like the golf analogy.
Bill, Salesforce Executive, Salesforce: Your son’s a golfer. Right down the middle of Fairway is like the customer service use case. And OpenTable started with customer service as the number one place that they wanted to use agents to help them automate. Well, now that OpenTable, it was successful with AgentForce in automating a lot of their front end customer engagements, their creativity has started to say, Okay, well, do we use the same agent technology to make the lives of our sellers and and sort of merchant platform more effective? And so this is where the evolution of AgentForce is not just for one workload for customer facing, but also now employee facing use cases to drive higher levels of productivity and automation inside their company.
That meant that we had to evolve AgentForce. And I think one of the things on the evolution side, we started very simply with a $2 per conversation way of monetizing the AgentForce platform. Well, when you’re working with salespeople and using agents to automate, say, a quote, there’s no conversational metaphor in that world. And so we introduced a new sort of approach, which we call action based pricing, which is just simply paying for the actions completed by the agent, which allows us to unleash the full power or full potential of more digital work occurring in the enterprise. And so I do think this evolution, even in the customer side of how their deployments are evolving and growing and expanding, it also requires us to be on our toes to invent new ways to monetize and expand that monetization for more use cases for their needs.
Unidentified speaker, Host: The question we get on AgentForce is this is one of the most exciting products you’ve had in a long time. But it’s an analogy of the bug zapper light, where the light’s on and all the bugs go to the light, and then they forget about everything else sales, service, commerce, everything else. So how are you ensuring that the sales and your customers just go to the shiny AI light? And how do you ensure that remain focused on the core?
Bill, Salesforce Executive, Salesforce: Yeah, a great question. By the way, we’re full of analogies today, so I’m sure this is translating quite well. So a couple of things. I think agent force, largely today, again, the first sets of use cases have been very external facing. And so naturally, that was appealing to service buyers because external facing engagement and external facing automation is sort of an extension to the service center.
What we are seeing us do now with this introduction of action based monetization is start to now bring it closer to our core, which is really to drive more productivity and uplift in performance for humans. Our strategy is humans and agents working together. Some company strategy is agents only. Some company strategy is user software only. We want to sort of have a balance between those two sort of sides of the equation for an enterprise because we do think, you know, we’re living in a why this is so exciting, not just from a technology standpoint, but from a workplace standpoint, is this is the first time that organizations don’t feel limited on their ability to grow or save based on how many humans they can hire in the workplace.
And so we really do see a world where humans, back with agents, are operating at a higher productivity thesis than they currently are today. And that’s where as we sort of bring this closer to our core, you’re going to see us do some things on our road to Dreamforce where we announced new versions of Agentforce for salespeople, new versions of Agentforce for service professionals, new a new versions of AgentForce for industry professionals, like in financial services and wealth advisers, that allow us to sort of take our core and bring it into this AI era. We didn’t talk about this externally yesterday as part of earnings, but that’s been part of the retooling of every application that we’ve been going through. We talked about this called more core initiative, which is bringing all of our applications onto one core metadata foundation. Well, not only the metadata foundation, it’s now the agent foundation that these applications are getting.
And so what you really will see from us is not agent force or apps, not agent force or data, not agent force or metadata. It’s applications and data and agents and metadata all coming together at one time, which I think really has great accretive benefit for our company, but more importantly, our customers.
Unidentified speaker, Host: I think maybe we’re going to see more, too, on Service Cloud at Dreamforce about how you’re expanding the scope of what that could do. Is that a fair direction? There’s a small company that seems to be encroaching in your space and making a lot of noise. So a lot of questions about what ServiceNow is doing, and can you counter to that opportunity in broader service requests?
Bill, Salesforce Executive, Salesforce: Yeah. Well, first off, I think a lot of companies have been admiring what the Salesforce operating platform has been, and so we welcome them into the CRM market. We think that we’re very well differentiated with the scope and span of our application. And I think customer choice will win out in the long run there. To your Meta question about expanding the Service Cloud portfolio, I think there’s a couple of areas of really high interest to us.
Number one, with agents specifically, we see a world where, just like we’ve all been conditioned to email support@company.com, we think that agents will become a new primary interface for companies to engage with their customers, and we’re seeing that, like I said, with OpenTable, FinAir, etcetera, really being companies that are leading in sort of new way to engage side. So service will have some reinvention about the way in which you engage because agents now can kind of sit on the front end of their experience. The second thing I think you’ll see from Service Cloud is an expansion to the kinds of service that it offers, not just customer service but employee service, not just customer service but service that is more for IT or inward facing sort of care and operations. And I think that the combination of customer service and field service, which has long been another successful product line for us, now extending it into new service delivery lines is going be another area that Service Cloud continues to grow in. So it’s not really driven by any competition for us.
It’s really trying to think about how do we just end the world’s bad customer service moments. And I think our platform is quite differentiated, and it goes through all moments of that life cycle and journey. But I think Service Cloud will have another great moment ahead of it.
Unidentified speaker, Host: You were kind to give us time in January for many of our investors at the bus tour. We came to saw you at your headquarters, and you had said that AgentForce is additive to seats, not taking away seats. So I think everyone would love an update on that. It’s Service Cloud plus AgentForce. You think TAM expansion, revenue expansion, this isn’t a situation where we’re seeing reps disappear or salespeople disappear because of this No.
Bill, Salesforce Executive, Salesforce: I think, well, in every sort of moment where automation has entered into our world, we’ve not seen the collapse of seats. I’ve been in customer service technology around that space for like twenty years. Initially, was going to be the website was going to kill the customer service center. And then it was going to be RPA was going to kill the customer service teams. And then it was going to be agents are going to kill customer service teams.
In all moments of technology innovation, what you’ve seen is it’s just another interface for companies to engage their customers, which actually creates more demand for customer service operations to be fulfilled. So I don’t see this collapse of seats like maybe others are out talking about it. Typically, that comes from agent only companies. So I think they’re a little bit incented on that side. What I do think for us, what we wanna do is is sort of enable service capacity and throughput, whether that is human driven, whether that is agent driven, whether that is automation driven, the Salesforce platform is well positioned across all those modalities that allows companies to get higher throughput and higher efficient operations.
So I definitely think that service has better days ahead because of all these technology moments that are coming into the mainstream. And as the technology evolves, as well as the customers mature in their understanding and their acceptance of it, I think you’re going to see service teams really finally keep up with the demands of their customers as opposed to have offsets in that world.
Unidentified speaker, Host: Everyone in the industry is saying we still haven’t mastered pricing for AI. And I know you’re probably in the same spot. You had a $2 list per conversation to begin with. I think you’ve changed that already. Everyone’s still changing.
But when you think about the pricing model, is this, hey, just everyone, you’ve got to stay flexible because this is changing by the day? Or how do you think about this? Because I think we get a lot of questions about every company that was here was saying, there’s a different way we price. No one has a standard.
Bill, Salesforce Executive, Salesforce: Love that anyone who says they’ve got it all figured out is sort of kidding themselves right now. I think that flexibility is the word. And we actually love that word at Salesforce. We announced something which we call our flex credits, which allow you to sort of expand different ways to monetize AI and agent force for customers because this moment is sort of a try and figure out which mode works best for the use cases. And I do think, just just to your point, we haven’t taken away the conversation model.
We’re we’re actually introducing an alternative model for companies that maybe want to use these action based models, which is just paying for work that gets done, versus a conversation model, which is simply a communication back and forth between companies, because there are, like I said, not every use case is a conversational affair that agents can do. So I do think you’re going to see from a broad spectrum, the hyper scalers really monetize AI in a world of tokens. The applications companies, of which we are, do it in either conversations or actions or even a third one, which you’ll probably see more from us as well as some per user per month offerings. And then the upstarts are kind of doing something which is like outcome based pricing, which we think is an interesting one, but is hard to scale because sometimes the outcomes are debatable between, did the software provide that outcome or was it my human So I think you’re going to see an evolution, for sure.
But for us, I think it’s just offering choice to our customers in this moment, because the word is flexible. And I think customers want that flexibility.
Unidentified speaker, Host: Bill’s favorite, Agent Force, live reference don’t have to name a customer, but what is that customer achieving at a high level before and after? Is there you white label it.
Bill, Salesforce Executive, Salesforce: Yeah. Well, other than help. Salesforce Com, which is our marquee key one, and and everyone here can go out and sort of see AgentForce running live on that. We talked about this in our earnings yesterday, where the efficiency that AgentForce is providing our company is allowing us to not kill jobs, but to offset human support labor and put it into forward deploying engineer labor that allows us to sort of make that work for customer use cases. So again, it’s not labor reduction.
It’s just labor change that occurs. So that’s our own internal use case, and we call that Salesforce on Salesforce, and it’s truly awesome to see. We use it every day to really guide our work. Companies like one eight hundred Accountant or companies like FinAir. I think FinAir is one of the use cases.
The customer service in the airline and tourism industry has not been universally known as the best in the industry, like the best in the world. FinAir is putting a lot of inferences and energy into AgentForce to really streamline quick answers to things like flight status lookups, or quick answers like, how do I go from here to here more efficiently than maybe the long durational side that maybe the web tools or searching by of flight cost might might give you. So I definitely think FinAir is one of those use cases that that I love to see, and I and I want more companies to sort of look at what they’re doing, because they’re not just doing this from an efficiency standpoint. They’re really trying to rethink the way in which they serve. And to me, I think still can go a lot further in our world to help companies get better at delivering service for their customers.
And I think they’re a great use case.
Unidentified speaker, Host: Seeing your seat, I mean, there’s so many of these startups that are coming in, in data and AI. And I guess one question we get is, does Data Cloud have all the friends it needs on the team to achieve what you want now? Do you feel like you’ve got the core pieces now to run this organically from here on out with the pieces you bought now?
Bill, Salesforce Executive, Salesforce: I think in terms of the data and the data platform, we’re always listening to our customers, like I said. Informatica was a combination of looking at it from an asset standpoint, but also listening to customers and what their needs were. So I think from a future standpoint, we’ll always be on our toes around what our data platform evolution looks like. But Data Cloud is the fastest growing organic product we’ve ever built in our company, And that team is really not just doing this so for to unlock data from the Salesforce ecosystem, but, you know, we brought together one of the world’s first zero copy networks, you know, working with partners like Snowflake or Databricks, AWS, Google, people you would think would be traditional competitors. Well, actually, we’re partnering in a way that’s really about giving access to this data and bringing it into an action framework like Data Cloud provides.
Harmonization and action framework like Cloud provides that lets companies do things that they never thought were possible because data lakes were sort of in the back office. But CRM has always been sort of in the front office and the front end of the experience. And I think data cloud really continues to redefine that data strategy for a lot of companies.
Unidentified speaker, Host: I know Miguel’s not here. Maybe a question for him. But when you think one of the questions we’re getting is, we don’t know what’s going to happen. No one knows. We’ve heard from this conference most software companies haven’t seen a massive pullback.
But everyone’s watching, worried what happens. But what are the actions you take to ensure kind of the safety blanket of, hey, if it does hit, and we do see a little bit of a slowdown based on the actions the government’s taking, is it just we need more pipeline, we’re going to take a lower close rate, that’s our safety blanket? How do you describe kind of the internal motions that you’re taking to kind of ensure you cut through if there was a bigger headwind? We’re not Yeah.
Bill, Salesforce Executive, Salesforce: Well, I think you can break that out by sector. You can also break that out by region. You can also break that out by company size or sort of segment, if you will. Let me sort of address it in those three ways. First, by sector.
When you think about the public sector and the federal sector where a lot of the Doge operations, the world of efficiency that’s entering into The US Federal Government, Salesforce is an asset that’s helping companies become more efficient. So we’re actually very well positioned to help companies in this help the the US federal government be more well positioned to use this technology really to power some of that efficiency, power some of that kind of efficacy of of resources in in their world. So I actually think that while the current buying environment may be a little bit more measured in The US public sector market, I do think that era of efficiency is going to create opportunity for software, and especially software like Salesforce to grow within. I think in other sectors, where federal policy, US federal policy, is impacting tariffs and tariff based pricing for retail consumer goods manufacturing, we’re working with our customers on all of that to help with better price uplift or pricing strategies. Things like our revenue cloud are helping companies really rethink the way in which they price and adjust that price point for market dynamics.
So I think in a lot of ways, the sector based way and the industry based way, we’ve already been investing in to help companies ride these ebbs and flows quite well, and I think that shows the strength of the application portfolio we have to help companies with that moment in time. From a geographic perspective, some markets where you expected some slowdown, we saw a lot of, actually, rezuberance or resurgence around sort of the buying environment. UKI is is, you know, a market, I think, that had had some really good sort of results for us. France, you know, another good market, had results for us this quarter. Those markets, I think, where tariff policy is putting them on a little bit of uncertainty, we’re actually seeing a little bit of, okay, let’s invest now, really, to make sure that we’re using the applications to help us navigate these moments.
And then the last one, I think, is on sort of a a a segmentation side. Some of the signs that were really exciting to us for this quarter, self-service. Like, our Slack self-service business actually had a really strong quarter for us around how companies are engaging with self-service, self selecting buying to really activate their products for the first time. That’s a really good sign that companies are feeling confident that they can invest in these new technologies to unleash these agents at this time. Same thing like small business.
Mark talked about it yesterday in our earnings call. Small business, especially in The United States, also a sign of strong growth. So I think, overall, you look at the macro environment and these temporal moments, the diversity of our portfolio, the strength of our geographic reach, the ways in which we’re reinventing the go to market from a self serve to an SMB perspective, I think are going to help us ride these ups and downs as the macro environment evolves.
Unidentified speaker, Host: Thanks, Bill, for being here. Really appreciate it and great
Bill, Salesforce Executive, Salesforce: This presentation has now finished. Please check back shortly for the archive.
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