Salesforce (CRM) 26 Aug 212022 Q2 Earnings call transcript

Welcome to the Salesforce’s Fiscal 2022 Second Quarter Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that this conference is being recorded. Instructions]. [Operator to conference like Mr. your over hand would to the speaker, I Goldstein, Investor of Vice Evan President Relations. Senior you Sir, may begin.

Evan Quarter Thank you, for call. of Second us for thanks Vice I'm Investor conference Relations. Mel. Hello, our everyone. Fiscal And Goldstein, President Senior joining XX

found release, me be Bret on Chair today Marc our results the call press replay and today's at Officer; and Revenue Operating Chief Benioff, Weaver, Chief Officer; filings, call Taylor, SEC Our IR Chief CEO; a website and of Patterson, can on With Financial Amy www.salesforce.com/investor. is Gavin Officer.

commentary As our a in and reminder, in will our non-GAAP can our guidance today earnings between press terms, GAAP results and non-GAAP reconciliations release. found be be primarily

be could actual results included our uncertainties, let to most our of are expectations Form risks, in particular, With of condition, our our and assumptions, Some or hand SEC on risks, partners assumptions. In XX-K. and materially the and around factors business any If subject operations of materialize to a to incorrect, change. forward-looking COVID-XX that, financial me of prove Company today description acquisition, statements our these comments differ pandemic our uncertainties, financial results call and other filings, should including Should and from affect assumptions that these Marc. our these that of could may statements. our to is are subject impact the contain recent of on uncertain and report the and results that customers forward-looking

it's in Chief Officer, meeting for in-person a Geneva this the much doing Economic business great The today. be a being the how in about Europe very everyone to and Gavin how and I'm And much. for of is face-to-face Patterson, I experience to And we're is been IBC our and And are on Revenue thank Well, them here. quite appreciated. world with And you, with Forum's Board different discussing am our normal. our businesses meeting. meeting with here open actually Switzerland, really and Evan Trustees U.S. here in quite call and talking attending new and World Geneva, thanks customers now. also, a changed, about business right the businesses which has is from their it's bit. And bit learning great their how being

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customers One you to that products, see And spoken focus core, things the last more can how many over but at -- had team, look do our For been acquisition, XXX. points on success, of on It's doing the to high so we've XX.X tell them. especially has just we're And and think, momentum. you operating range. fiscal greater at it's represent the XX% and to Company, ever XX core about here some raising a you Company for I the two I year through able really with And not in projected raising don't have better just today, execution, ever operating the I again, its based end our our is the the think the we as of year-over-year. quarters. Again, I well been organically, outstanding areas. of Salesforce just performance I basis our don't we XX.X% raise is 'XX, is margin. to better up management amazing our are now going really Customer numbers when which reflects, in [Indiscernible] growth are customer margin million X will think year-over-year, to well-positioned billion, the in XXX Slack

that Now cases our which because Slack been with sustainability, met core also to the being in of mostly as with net-zero very now because think and has going the the have I to world same that CEOs. customers Fortune you to Fortune They pioneered, the today, -- many fully net-zero has us regards renewable kind well, they're crave know, head many talk is exciting we're that but and we've values XXX and I -- our Salesforce Slack in renewable everything towards a values, profile, so of this and were which interface first. we through user attracted about, lot XXX, that of start the transformation see we've of now we'll especially are sustainability areas amazing companies as to But an Company, as focused. and to a

XX% business So, customers, I'm about we're X could to in quarters have X that I how think year. of those X last of the our we've margin. of out the the half greater about things either you, had excited first I'm quarters, growth. I than last said positioning I'll of the core I'm having thrilled X we greater ago. the that with grew operating And or absolutely our excited and excited X that the tell see And very quarters revenue XX% outlook, am that don't

increased guidance you Company raising my So, hat our for capability operating this that. opportunities for software know employees off -- And row ever, I we're growth see and margin have is happen. fastest-growing the revenue And team time look, the management a fourth and this to for year. making really in the we're we additional to as enterprise additional the

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technical on just now. It Marc This Well, with continue I there. Marc few a Thanks, in quarter. difficulties Company an just that Bret Taylor; a the I'll have with amazing introduction, was for we right the momentum really think is the script. incredible and reflection

Salesforce incredibly customer. been. CEO's digital one rated be in have just mind IDC is It's more released growth. value strong Sales our all product a are world because products trust, CRM in true in back how for we've Every which than the can to transformation now to one honestly, its in more of Our performance every for XXXX is has number you in them number the quarter. than see platform ever, industry help in this and ends And than number we their has around seen it's to Board sales reimagined just with and And more And business. the it's That's specialization, teams. And putting surveyed the of that's and vendor the more and worldwide. strategic on amazing. category of than of companies number Cloud more for every is it kind the in never one price. Cloud number around XXXX relevant begins and been customers. product, ever that's this And momentum Switzerland one year, why a world. That in April more growth are measure companies Salesforce their get just I the the in mission-critical the our Radiance, digital decade. the are one of just on SaaSPath the mind trust agenda to this

XX% are Sales year-over-year. growth already seeing results the as Cloud to accelerated We

from Our field Service service, to center self-service, accelerated is incredible. gone amazing year-over-year. billion momentum. All whose [Indiscernible]. to $X contact Cloud scale is Service Cloud just is business, growth a have XX% also service digital the of of aspects customer has This The and to seeing

this is within MuleSoft. is your into transformation, of of marketing top XX customers. platform our these is every data success top a customer trusted relationships is the MuleSoft of which Our also real with direct, also XX% bringing world investing in we're Salesforce a and transformations power every within is XXX, digital unprecedented grew customers. The together for Tableau and our deals. of truth a year-over-year in XX Tableau seeing commerce is X driving these and the organization capabilities deals X as quarter, single one of their clouds in source all And

than faster the XXX our industry strategy enabling started every of with customers needs an Customer before, industry. is tailored get ever to Our to end-to-end specific

saw and Health We industry Services. recurring growth year-over-year especially in the annual XX% Cloud Our strong in Financial cloud public Business in performance revenue. had our sector an

deals In of the fact, quarter our sector. the XX X public in came top second from

been new customers. dimension And Slack, Our core time never product like every organic stronger, relevant to Salesforce. a a not has Marc for whole single we're be now one more more business with a at could relevant our said. bringing just There of

Customer the my success in they connects on any the any Slack-First your this platform, are the from can And through cloud. this transformation our at the now Zoom. look depth powerful to exist Slack now, world. to Slack worlds center Contact has is CEO, It's conference love sitting the the see this. buildings, and product of more highway your digital hallway. makes organizations moved moved is single rooms how in HQ. has that have paper, used employees, more a use. all-digital commute every It you to a or talk around be platform XXX mediums and you customers. finding to to for anywhere If working of Salesforce to around all My people most the partners, effective even primarily your customers gone and the your the in it home entirely work of centers Slack headline and from right year. are of office read Sales you

Our engineering the ground teams have running on really this hit integration.

it got about the bringing but is Salesforce employees in and really XXX% over Slack partners, we anywhere. their their talking of a Over transforming of how just in growth able a connected, we the together your Just talked UNICEF, our Slack Dreamforce. our Slack so and Service work power is am Stuart to Slack platform. to that Slack more become productive Connect win Customer he Sales customers. this could have employees, and Nast, is Arvin every XX% has he him, talk of allow, in And enable a to you the just lot first we to vision a for even of Slack my to We've XXX. all Norton conversations. business. the not we've Slack. Company entire and growth technology XX,XXX Customer coming the the bring innovation these last And are excited favorite all once-in-a-generation Company. our comes single Slack-First Salesforce. customer's more I it's even grateful way your revenue thrilled Lowe's, about what's close action the friend connect with work, This at Gavin, Christian Slack vendors, Slack examples Cloud at my I'm day. be is from analytics engagement, next on the be this mine announced our to Customer transfer to more more, quarter. is a not to service, for IBM Connect is Healthcare. using over some connect love about them to And innovative. a one across I'd ton to of XXX,XXX customer believes partners They've And year-over-year. Slack's with the of around? Gavin but of basis. XXX vision sales, one Slack-First year-over-year Slack marketing your Company connected enabled and in transforming that on our Slack Customer your IBM of customers. fellow And to XXX,XXX employees decade. about week XXX Slack-First of IBM launch customer and event, capability and connect the of customers, and built illustrates a to up standalone to to great accelerated momentum with of across grew every Target, working And and Cloud employee are the is at really this. key talked workflows fun wins take this at looking for team really and will Connect. you for gods not XXX if our with Conde I

hear me? Matt. Brad. Hi, you Hi, Can

Yes.

[Indiscernible] Gavin, go ahead.

EMEA, in we see the the in not that U.S. we of [Indiscernible] new can ever see sector, the public in being relationships state, remarkable Thanks companies significant customer like in Other and business. world deal [Indiscernible] the we quarter. our you Bret. Thanks, starting Well, in wins the just the examples wins, force And friends but second return that reflected fantastic great in a sector PayPal revenue, the largest U.S. But really which saw expanded Coinbase. had quarter. some with annual around in we the public the last behind. in

a cracking relationships continue Dicen, Safelight a study. case things deepen and businesses, Thailand. we with Afterpay And Vodafone, great FWD things have then business, including and to which Freshfields, is already We Canyon our APAC, like [Indiscernible] [Indiscernible] many and bicycles,

in So, strengths we're internationally, seeing U.S. as as the well

great I fantastic Now as little a customer a couple pivoting a remember on but of one Company a to win Herman more want with into a with and bit go examples example more it's detail You is it, that might of Miller, a experience.

the spike the So, in furniture. saw Miller demand start huge surprise. after Knoll of their pandemic, for Well, a

top then, conversion Of the their the an back a improvement turned carbon cloud of better checkout And they're Salesforce's experience [Indiscernible] already net-zero and of a rates streamlined that that. quarter. experience, even on initiatives. to climate-related chat. And significant using experience, their recommendations, now next-generation been Salesforce providing course, they transform track e-commerce video Since now and sustainability is to Company, product they've they're on and to tailored seeing other in in footprint

using XXX integrate and strength think RBC want the see solutions Management, another more example from RBC we're provides quarter. Wealth win view you management for around it's look multi-cloud the to building go the strength. in I over can different Customer a advisors. to to So, how They're great processes, XXX, building Customer at unified And advisors a with which is partnerships, of great of Customer create client. from And streamline XXX something that that's to XXX-degree systems financial a wealth that I brings than really platform to data every XX life XXXX we

And process, Salesforce I think. workflow automation is case Then now U.S. no are which on-boarding XX,XXX GEICO a to the think of is talked is takes they're to one is of the physical great to was to example agents business. that single quarter, course. the a customer this using the moving in I it going entire XXX transform pages win several and XXX, been of be power more the trust task XM, introduction, And needs GEICO, was customers that powerful. you weeks, view in the providing which heart is than putting AI-powered the XX that create client the in about very analytics past. the that quite know this Customer the remarkable, now of is documents, is XXX digital They've it minutes. improve we've in relationships. of to across to insurer now XXX just And those But really second-largest a in their Customer into -- auto me leaning now don't

for Customer Marc XXX across to that XX You expand. And been using talked countries. had about continues they've relationship

employees to CRM Tableau back is QX, with to intelligence Trailhead as thousands better philanthropy now customer-facing of the that hours selected the with a part engage employees is XM X crowd operations, Maps goal achieving to years. Salesforce of X XXX,XXX train their empower using volunteer the nearly giving boost used give customers, communities are employee manage million being to in help they proposition. to Company. XM join of And Now as over next productivity. then actual

example. really, and I powerful Amy, then it's think And to IKEA. one hand a more, over before really it I just

So, IKEA, fantastic Europe. business over in here

We've Customer already XXX. across to the markets. great example been great with with over Another Cloud [Indiscernible] them helping a XX Marketing marketing getting be

the were us service, to pandemic, Now, across after-service support field improvements in the [Indiscernible] as turned soaring help to U.S. to home they planning visits, installations, use

type during customers to So, of relationships, our adding how another partnership example building we're existing into increasingly Clouds relationships.

So, I examples anywhere. they're examples. we're of customers think from wherever many There I they think are success how are a helping these are but all, more, few deliver from

So, net-net, gives my and great just think not in conversations services, but our in the year. for with half think execute in me it I customers, our ability to I second of products the the confidence, demands

and So, both execution. demand it's

So, I maintained really going continue enhance the in to half. see Salesforce Slack that. during demand [Indiscernible] think this is environment across strong And really second being I to

it different to customers. of our to continue to just hand able you teams doing And I I'd I'd And been to to adapt to Amy, over around of to support normal. so, a just to world. the amazing thank able way So the you. work, say been we've new They've before over that. them for in a a like thank effort quick sales like to Amy, the

afternoon, And we new Gavin. strong business. of you, execute drive of and income. QX everyone. performance. top Thank operating customer with to of another discipline remarkable our quarter good were demand exceeded able We We product’s our across all saw QX record top-line higher bottom-line levels achieving And expectations, sizes. to and was Great. regions

best-in-class quarter, process work environment. as play our critical the QX, business strong revenue purchase on that during bringing in work-from-anywhere especially Slack paid any acquisition, in up the In which July also with thousand of in than digital of already saw Slack they close The Slack the XX%. re-imagine future and XX% accelerating customers a of believe will into of the XXst, also into customer the performance that our of accounting. $XXX basis, We of the digital-first impact greater We standalone And year-over-year spending underway technologies customer is XXX. yet a completed transformation customers, annually grew accelerated number a acquisition. the the enterprise. role last asset another acquisition Slack on excludes

the and end we and and the income. the For consequently they included are our fiscal and the reported Where non-GAAP guidance. Slack-specific our operating to our impact on from Slack's our Slack and line short excluded of operating period QX, below our the results results is revenue in will immaterial appropriate, deal call results, non-GAAP were out closing OIE. between QX

quarter, of view on with very interest our issued XX the favorable in weighted of the to maturity we of bond, terms part years. inexpensive $X I'd raise, As particular, source pleased attention only In reception rating what to as offering. not concurrent raise note S&P, our and X.XX% average of were acquisition, we sustainability billion of average rate oversubscribed We $X our credit a notes like call received senior terms, we to an And weighted funds strong billion the A+. which by the capital. the we most of on did this debt upgraded was our with

me exceed or and business of saw constant their fiscal Cloud XX% Sales results deliver some Achieved top continued MuleSoft of that was momentum X.XX expectations. new few the enterprise the let through X.X to to top-line QX walk growth. in up starting Now, discussed momentum revenue deals, as for quarters, The Tableau pipeline with continued as key revenue last Total Company's these XX% saw business 'XX, with currency. the increase. quarter or billion, XX% acceleration We both year-over-year new QX XX an billion in their highlights. our results deals share of strong in us commentary. we've year-over-year, enabled second the for you

included to seven-figure X.X was of The to And X quarter. of incredible an clouds. in the these Bret the or have And MuleSoft for continued strength, deals enterprise in of and evidence deals, XX, of our than the our in which accelerated continue including be see of again, momentum strength and customers. showing grew on our X more accounting This average, for is strategic become this we this seven-figure number accomplishment, top deals XX continues of X XX% quarter, how X noted, international deals top acquisitions sector our an area public businesses, quarter. As clouds, by more sequentially. in year-over-year, XX Tableau top this The deals.

we note will with An practices. to growth improvement APAC between and our EMEA progress attrition, acquisitions perform billing X.X%. that X.X QX the remain and integration from Attrition Although modestly benefited X than of attrition X%. the to anticipated. continued with in better revenue X pleased We into on from last quarter's has

As early on calculated XX Fiscal lapped XX, a rate reminder, performance. impacted is quarter of which months' our the have of attrition based pandemic. was trailing we second the And days the by now

remaining X of both $XX.X obligation approximately revenue to accounting. months, XX up recognized and XX% at future ahead revenue assumptions a next was into or X current XX% our is as CRPO, primarily be obligation billion, Our to we of points Slack all up in performance changes contract QX points $XX.X The in expected future that billion, represents representing last quarter under due all got approximately which represents in ended the growth year-over-year. remaining currency. performance year-over-year constant around under revenue purchase contract the

our costs anywhere GAAP to due acquisition EPS efficiencies revenue was revenue outperformance in quarter due work and spending. as the was margin. disciplined and $X.XX was by the The EPS from Slack was non-GAAP non-GAAP the These on closing Turning realized world, XX.X%, non-GAAP from well quarter. $X.XX. benefited operating and GAAP QX by EPS to $X.XX. EPS expense on strategic to as gains from $X.XX the outperformance, investment’s of focus and and transaction-related a operate QX unrealized efficiencies, Salesforce during benefiting portfolio. recorded $XX primarily mark-to-market in approximately approximately adjustments higher million margin

QX XXX leading flow. to million, to XX% Slack's year-over-year. million, in in $XXX down $XXX transaction was had seasonality quarter million higher or Operating of to And Slack On flow cash cash reminder, flow cash basis, cash operating fees the as expect related Salesforce a free operating on quarter impact year-over-year. QX. results to XX% Turning was in second cash continue the a flow a CapEx XX no paid QX for to acquisition. million, skew we down the cash CapEx. flow and

Now, turning guidance. to

revenue or QX a of billion, approximately assumes growth This from $X.XX expect XX% million $XXX to guidance We X.XX contribution Slack. year-over-year.

X expect approximately we growth of QX, growth CRPO This to points For deliver from includes Slack. of XX%.

EPS and X.XX EPS X.XX QX to of negative expect to We of negative GAAP, $X.XX, $X.XX. non-GAAP

Now, fiscal moving updates. to guidance XX

As a result of growth strong million demand $XXX current billion, or $XX.X performance the million million previous are an our half contribution guidance This a revised revenue to of in we billion of the $XXX and from of environment, contributions, our an million previous by $XX Acumen revenue guidance and approximately the $XX Slack Net represents our from year-over-year. of second our core Slack on of XX $XX.X to execution XX% fiscal over raising year-to-date includes business. from guide. guidance increase this This million incorporates in fiscal XX, guide. our raise also $XXX $XXX million Acumen, increase an expected

the environment Our ability to strong. both execute demand remain and

representing non-GAAP our raising points and Slack to now guidance. previous less This basis margins XX expected also headwind an an to XX.X%, year-over-year. includes expansion points operating or XXX XX are headwind point of Acumen, We from XX fiscal compared basis basis our

guidance. Excluding a XX-basis our $X.XX. $X.XX this adjustment, diluted our to previous diluted also rise 'XX We're to point $X.XX fiscal compared margin raising EPS non-GAAP to EPS operating and guidance to our raising XX-basis to GAAP point $X.XX, represents

ASU to approximately no recall required $X.XX EPS guidance our recent EPS. headwinds Please as non-GAAP accounting diluted XXXX-XX. We be assumes further and OIE that will M&A mark-to-market expect by contribution from

operating our 'XX points. raising fiscal by We flow cash guidance are X

primarily approximately X from increase now headwinds and XX% points. The year-over-year. driven to by diluted flow year-over-year performance our XX% a cash and Acumen headwind impact guide growth of lower to M&A. Now expecting our of Slack previous is The growth from represents revenue

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as excluding We XX% XX% continue to anticipated the fiscal a of in flow X% to cash in of margin. revenue excited this XX, we be and expect resulting rate the we by year, record noted, we're operating close, M&A, previously remain growth and in be see approximately fiscal To the demand for strengths to rate revenue approximately levels of of CapEx environment XX% free impact XX%. to would the seeing

now largest Slack's products we're quarter. in XX, acceleration achieving we history. we of guidance of of XX We had saw with fiscal closed the reflects increased goal Cloud and fundamentals half an And flagship in the XX. of and impressive billion power our We excited remain confidence continue our two the to in fiscal together. companies business, our customer Our the Sales way well deal our to our revenue first have momentum in this on

looking are the operating improvement. areas model September growth our I to employees of during forward efficient find further on the we're disciplined to for of going many additional engaging the to to with able disciplined, our I And forward. quarter, all you ourselves committed and to way of say finally, Investor look being focus strengthening XX. while you Day want forward to We our operational thank durability being on at upcoming to challenging along of

the turn for to some back call Marc I'll Now final comments.

here. back I'm Hopefully, Amy. thanks, Well,

You are.

speakerphone San talking cellphone our at now And in conference I'm Francisco. through our to actually connected Amy's

revenue excited the the and your so as doing. growth, of growth, phone addition as winner big business, congratulations anyway, That cell well I of another our be margin great everything cash So, more is turns Amy. our the a earnings out of our about our flow Slack. couldn't strength you're on was great technology job thanks, growth, core on quarter a organization,

integration incredible and you and these unicorns, our of capabilities, a And just amazing are really things say for and about leadership you to our has to results. to exciting with entire that will, best if execution has I these Bret the this it’s listen true the the extensions to last moment Now technology over I amazing very so it's team perseverance team. our quarters got Connect, becoming what with CRM CRM like Slack of several through product better Slack absolutely line if team think, -- our shown our

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exciting. Evan to you're We to program. all for U please Dreamforce So, it's program will all redeploying be our our front-row And going of and be have you we capability to connected all extremely custom want also talk seat, customers. so to Dreamforce this a well, delivering as X

to So, that going us. I you're hope join all

Okay.

with you of So will also you. amazing. forward mentioned, also then Investor that awesome expecting conversations to be some we're looking at having we're And all Day, as Amy

So to I'll it that, up questions. open

all So, online we your now right everybody and questions. take is can

So ahead, go Evan.

Operator, the you go ahead and for call open questions.

Thank by the you. Instructions] Please while Q&A roster. stand we compile [Operator

line comes from question the Evercore. Kirk of of Materne first The

Your line is now open.

ask may You a question.

particular. I one ask Thanks Bret, maybe to you about wanted much. Yes. Slack very in

number and the in of guess, Now are I that be multi-cloud combinations on? judge -- number guys should for that the X Slack, just deal deal is planned that what is maybe with is, measuring X are equal of that looking know sort excited deals that terms I a betting is and see you're it include team to you progressing to revenue of as the of the very you growth plus closed, what about customers whole beyond success Slack, X that we

Thanks, Kirk.

about an first an building really a faster but we've that's our our event digital idea any with of Slack inside things the think, vision and Sales Slack-First our start Connect division Cloud, history. Slack-First week integrated like integrating Slack-First did this made Customer and think Case service rooms things analytics. products. digital And Swarming and of for I sales, not where Customer a marketing XXX Slack we like acquisition on are platform I also Service, announced foremost, than Slack-First which this HQ, technologies our XXX, integrated between we're last only actually, integrating excited deal Slack-First for We customer in teams.

more also going our going innovation up as Dreamforce [Indiscernible] said, things it's, are we measuring that a to as lot at be it's customers up you we're in capabilities like soon well. that going what Slack. those show It's So deals hands to to in show include coming the context with multi-cloud of And these have of of the perhaps customer the digital context departments, lot lot HQ. realizing new the their time. digital and who a for in are In job, at context companies a really the more vision first technologies sales, of more collaboration in context of in service, the of using the this doing marketing, and in

of imagine, a And of this really think Connect, And new that this not that we Marc outside planning bringing offices. had going by companies by HQ. Company I as of starting this new bringing started of one And is has excited and point it if started digital away. seeing at our what integrations I as are now them two help many all digital can the Slack Marc signing in our you really pandemic well. lot we hoped We've in customer's want talked as the in to buildings we're that's space. people of build which tools up this normal. to to that announced. planning bring walls you to really Help about you're a the opened isn't pandemic. that office every in partners them succeed we as digital and And But my product thing you're because lot I've we're start is the your a world. this mentioned half customers Company, them about infrastructure, world, these how think also and

of The Thank the Murphy comes you. line question of from Mark JPMorgan. next

Your now open. line is

You may ask your question.

a on itself. fantastic the Where in it on pretty create Congrats experience process something selling much. you that's it that. have that the fantastic you're And Was using very buying the with visualize wondering Slack heard actually quarter. is help us you a Gavin, in could if a by customers Thank transforming Yes. we selling that beyond you to are COVID profound temporary new again, one It's this -- seems try to quick way? savings. quarters. Because Amy. then to trajectory for plus operating like goes it efficiencies identifying And just XX% margins, margins? the consecutive see

and that like with months the we're furnaces. Since X say, product quite DOJ having ago, the to Amy's Slack [Indiscernible] just I do. great Customer to Obviously, that months ago. really come Recognize announced going excitement, Well, is excitement the share Bret the planning X to XXX. remarkable. [Indiscernible] what It bring conversations meeting has go is the deal I customer across we about have been does. the the customers about to crowds, to advocacy and question we've the And to I that Slack potential

our to out think synergy Salesforce and customers both Many that that two interest customers. see a -- from huge see going product we're have amongst now the Slack customers. are and perspective. there can I there's they overlap customers of good So, There's between they the can

are presentations sell on We give Slack. through often sales to are teams beginning Salesforce. powerful Salesforce most The

quickly. and everybody more deal means so a real-time close use and very so on closing channels you deal much and working the that Slack compelling where way it that leaning those leading is access who's on on Slack we're are deals, is close -- And and explain the see the have deals deals us in creating Slack we product, to that. we're we between itself, beginning it can of And more ensuring more the how and to closing customer, through, to it to channels,

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the example is perfect Slack, Slack on think. of I Amy? that So

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operating maybe a at efficiencies, and Rangan. able you are are the how some Gavin. could equation. the and terms margin? Thank How for color of side the a in congratulations it Amy, question is growth shed Gavin pertains drive little on initiatives as you Congratulations. accomplish fund Kash maybe bit able fantastic of time and and much efficiencies My same distribution you Amy on from quarter. growth to so that to you to

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The second question Kash.

top months and our And if quarters we've and that person, really anything. I conversations really second and year. as got and able was we're the fantastic we two strong, execution, I really of I accelerating off in the see happy future, into the demand, was Laulima, year So, the last the together strong and costumers half with just are to really start pipeline's look where XXX continuing, X in the come reviewed I looked into and ahead our having share review half-year the executives and in to Hawaii strong

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from margin. see at that in While that the benefit and we operating time same the [Indiscernible] we ensuring

And motion also could U.S the you selling see the what you versus in add, do versus hear Europe? on

that's Well, the this a I think what's common, with Marc, is is now. CEO happening -- conversation there is

us. transformation on Configuring, more So the get increasing as innovation in that that about multi-track because getting, the focus so a the organization. it's not digital so time-to-value, and coming on conversation as is customer We the through is I to is be deals, for priority. standard staying standard deals, multi-year yes. means going think -- bigger through, it's which want path. It's no good as to down much conversation product we're on deals, on Customizing, XXX. easier something much want a boardroom, much, longer there's real that's going we The is do to the possible. Customer much And CEO and to customers our

that's not our seeing what terms deals both be businesses. through we're customers in business. terms public In bigger quarter. all We're on Salesforce up So, do, to more the [Indiscernible] in Europe, board I [Indiscernible] plus it but we dollars business it's this in And but our million think or the $XX needs small sign the in revenue seeing just a million [Indiscernible] grow offers of, the And of across our more, [Indiscernible] deals. in recurring it -- the to deals, we're highlighted the coming end the increase multinationals. and in increasingly U.S. seeing way to of

Morgan of the line of Keith From Weiss Stanley.

maybe expansion For we [Indiscernible] the not is what're expansion, this the Amy. in and guidance margin of operating question margin could of don't year see [Indiscernible] And I Amy, increase you Excellent of giving will, be terms year. the When the type or more quarter reflation too, Delta in confidence year. the then of and half type this first this the a seeing if of especially first this you in to basis? raise half or the [Indiscernible] nice And first definitely of margin to Thank you guys the to year. of nice seeing guide, going pipeline the really in really in years [Indiscernible] durable, already. line that's on of And future a revenues top-line half the talk half go-forward recall of pick Marc, OpEx to second this durable? you operating that variant you. is because

-- swing us. be and Greenland net for they're and Number here X a continue take at now that. realize happening having that's in me been They're me of transformation make that's they and We've I merry in Europe, the economy, well them to deal -- and that a fully made because successful mentioned. Let to one, the as this to very having to environment that renewable important we're this transformation as let

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Evan. with it I back will over to turn So, you that,

appreciate joining the But you some very call technical today. guys you today. much. [Indiscernible] thank for [Indiscernible]. joining We the call Thank With everyone

we contact you Dreamforce very can on forward you much. Day. and any investor And to questions, have If Thank [Indiscernible] us look you Investor

participating. for Thank call. you you. Thank That concludes conference all today's

may now disconnect. You