Salesforce (CRM) 24 Aug 222023 Q2 Earnings call transcript

Welcome to Salesforce Fiscal 2023 Second Quarter Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Thank you. I would like to have over the conference to your speaker Mr. President Relations. Vice Executive Spencer, of Investor Mike Sir, begin. you may

and afternoon, you, second for call. joining Thank quarter Thanks conference XXXX us good fiscal everyone. Emma, our today results for

call and will at website joined With Chair me today replay filings, and our call Weaver, be by www.salesforce.com/investor. SEC portion call. the Marc release, found on Co-CEO; and press of Our Officer. today's is Financial can on Co-CEO; Chair Operating be Q&A Chief IR Officer, Taylor, a Benioff, for and Chief available Amy who Millham, the of Brian also Vice President and be We'll the Bret

As non-GAAP and a measures. and results non-GAAP and include guidance press release. found commentary reminder, earnings today can will our GAAP Reconciliations between our be our in

and contain assumptions comments of statements with risks results hand of financial incorrect, factors to risks SEC could our call subject to assumptions, could may description A on should uncertainties any actual change. these results other Should differ of or that are and recent prove filings, today XX-K, and And and materialize me materially that to our assumptions our report Forms XX-,Q uncertainties our filings. most included affect including and that, from which in could is forward-looking be statements. let and company SEC risks Marc. other forward-looking the these these Some

for call being thanks, the everyone, hey, thank on you, Well, Mike and today.

but the a the in We on had financials. yet had see business this delivered foreign even environment. strong cash showing resilience to and and quarter flow, we you XX% the of and the saw results constant or and billion, model profitability, an $X.X on economic impact As growth revenue yet fluctuation growth, our quarter, in the great in the our year-over-year quarter XX% stronger again, exchange really currency in Revenue up was continue dollar currency. for quarter, again we've durability

last we million X% the total million $XXX of which XX. expect assumed and quarter, $XXX is the was full delivered was approximately and saw cash we guide for headwind flow. margin million roughly $XXX we headwind year. revenue, Operating quarter million fiscal $XX a we now year-over-year than our more QX, For in in exchange operating to foreign of in

Our performance incredible that an $XX.X undelivered the obligation have our not or is It's remaining customers this revenue total and we really recognized. contract signed. billion, yet with is value

Now, guidance. turning to

business one think leaders, it's I've our to the months, CRM to, CEOs slightly Software this going it's different and position. Everybody heading global is But on now. the the agree to leaders, could speak everyone doesn't few see has who sees matter a hundreds different got surprise And it different met and where business don't geography, slightly economists, I a and with last a the you at anyone, be about economy different things a answer. and do experts Over political of is they and their IDC CEOs every with by forward, and that what for Salesforce think way will with number transformation know and begins number one right That's share priority we ends why to everyone transformation continues what the drive customer. digital according market digital globally, what business remains that Tracker. I other

business. through more in everyone customers to on taking this, to to years. approach around, cycles to and more they XX last and Now, start a way becoming that buy. the over in I've see calls management, we've Nearly we've July. we a cycles measured who get is stretched. levels of seen these with been ones like especially have for economic us, of measured been see these those of this we are number you Deals And can inspected their Sales of all higher by began all talked come our

in these this continue trends and the we guidance. our in expect reflected to term near We

consistent, foreign of being $XX growth and constant we're performance. of we're XXX to XX% our impact buyers currency. our year-over-year and or or margin an significant cash we At guide part year operating about of growth both deeply XX.X%, points year-over-year. billion is the committed flow long-term that same guidance XX% to exchange of billion more remain fiscal and drive further Given time, $XX.X revenue measured, bottom expansion This basis to line as 'XX evidence 'XX revising top revenue margin, in to fiscal our plan the maintaining disciplined

right the in right getting company $XX get next to for acquisition what team, M&A and questions we're strategy what going always We to playbook, next fiscal acquire We our year have going products, do we're 'XX. the billion and to right cycle. an from the in revenue about

proud through XXth one more Salesforce digital their the is most The for of And our has front partnerships. Salesforce. VA our have Francisco. part made families. building And do companies we door think trailblazers closed it's be meaningful We share, and proud XXX,XXX consecutive Affairs, confidence in year, great we year so the for is business It's be days of that It's that XXnd incredible attend. relationship one we're this US Brian none becoming we right being here of approach to helping wins up of company, serving the people years, in hear I have as of more strategy call. the flow, the and with get in one cash in here far going quarters every major Department again, that our and incredible Millham nation. we'll an also repurchase. always shareholder our value. authorized great we every brand, great the a to hosting world, this. Salesforce+ going community, is and runs moment. a be on quarter. September across XXth amazing of XX through earnings veterans I'm fantastic reflects can't in the I'm and community billion this share who our all detail company first-ever celebration we've see our expect and is one over level that We're we to Directors we're deal far to the events three in our about of more amazing. our commitment and quarter more the a and entire in expand to values, Board been just have we tell customer done six capital San our cycle, to $XX question its on especially thrilled in trailblazers, And got to a so over connect you in marketing This in hoping streaming generating Veterans now sacrifices Trailblazers, XX every to number millions the for market parts our in million to to XX excited able also with counting about has some do an those is of like been call to broader and the you'll in. allocation a countries you the and it's been exciting economic in than of customers found of registered Dreamforce fantastic but growing most admired cloud XX expect tune revenue XXX,XXX Dreamforce, it's celebrate person my favorite single And to We've

a XXth to philanthropic and ever, We be And back. Salesforce and our innovations we're have big be Dreamforce. really of the be Dreamforce. Dreamforce X-X-X to model. ever has speakers product line It's also giving the an to amazing our celebrating going announcements going It's going through and impact had biggest

Peppers $X. playing going and now Hot million here our more At Oakland. amazing to grants, in be to benefit San hours XX,XXX hospitals Red billion and the X going They're Francisco surpassed than using in right volunteerism over Salesforce his proceeds the entire band, our XXX% that's performing concert Anthony everyone. with children's X Dreamforce, of to in at annual for we've and As nonprofits Chili free. of

So course, if firms, Dreamforce all to vendors, they are invited sponsorships Amy, our don't friends, everybody get September because on during sponsorship? to Day the do it's Investor tell tell going they tell your you're [ph] even please to Dreamfest XXst. invited be of And tell your your to incredible. Dreamforce

Yes, invited. Marc, they are

been going want miss Brian helping Millham, number and you're build to employed before earlier to it. Bret, Operating to XX not is right. off to has Look, days. like to this from its us Look, Officer. Chief Brian handing our All congratulate I'd company new

will it now year Patterson us I'm help Gavin one I last Brian we're year, ecosystem, ago, period really power And sales proud to an our to customers to Chief we to fortunate going growth at saw Bret. organization XXXX, sales years of has And $X.X your did it strategic the incredible new Cloud trajectory the over billion, so proud, only has then Brian, Gavin, did, think get something deliver As mean When to history. And incredible success help is role. right? our the to the to going million. -- of to over that? now Salesforce's in last growth success I guide was And global every we're turn Officer, us for under $X.X on and Mike, like customer something periods Congratulations look to doing for was direction. Brian even couldn't of about closer it in that economy. like Officer, Brian our and new our the important helping right, now we that Gavin lead and in I Salesforce I months. so Sales in Operating $X.X billion, that his to think Bringing fiscal during responsibilities. COO adds more I to be QX, customer three full is congratulations us of most years, did and grateful continue And from that, as with I last $X.X that Is you the billion years role Gavin. Chief Gavin. overseen and thank numbers I rapid who this taken XX when two Salesforce's during I'm to last the two back it's Strategy one pandemic of

Gavin. Thanks Marc and Brian congratulations, and

bottom-line and said, top Marc performance. delivering another had quarter strong strong As we

and demonstrate our model Our business durability results the of our the strength strategy. of

XXX is in product a And of reports. thousands Customer Magic the every market digitally the is industry hundreds helping Gartner platform XX transformed. Quadrant the in portfolio current and industry leader, leader companies standard Our of

differentiated. over deeply XXX Einstein also billion Artificial is Intelligence every incredible. predictions day, is platform technology just now Our doing

in seen the has of the business resilience our unmatched durability in and lines and industries, in our ecosystem talked And go-to-market XX The over about serve is Our business and capability years. is software. we finally, of the regions, you've industry. the also diversity driven Marc unparalleled enterprise past

global that joined XXX,XXX trillion ISVs, next and administrators, developers, revenues us million in for what be driving As Trailblazers XXXX. are IDC represent Dreamforce estimates community $X.X by business they a to new XX of strong month,

IT you both buying the this measured teams In and close the deliver decisions, Europe, XX,XXX $X.X they from year-over-year we're time conversation hours America, with environment. grew wins uniquely and cost Latin are Cloud see CEOs XXX Zscaler, healthy XX% a Customer more enable all to personally heard their and top seeing in But positioned and Veterans XX% XX%. Affairs, in employees' scrutinizing XX% currency, it Workday travels saved and productivity, with Sales analytics, time some reduced value. in Schneider to to and Schneider transformation our revenue time a my And Cloud costs. Service grew purchasing Using currency, and our CDW, Uber. I MuleSoft, this US has take in and efficiency, including Sales customer or results. focus in Executive at is towards and Department environment, close. shifted wins we XX% America hundred meaningfully remains our of you As quarter customer constant longer in including their year-over-year, across Marc, can savings. by growth North Cloud of met are CRM portfolio the over customers digital saved million And deals Electric. to at this constant priority. quarter's of

a technologies to Our Uber customer product channels improved with XX% that improvement investment as customers in and in productivity across their e-mail, in accelerated their support chat phone Einstein Cloud and more a pivoted with by digital is reduce Service their spend Eats chat Eats deflection XX%. our Uber AI bots, costs. digital line, our call service example. saw service great particular, importantly, they

year-over-year this Platform, work. to in their XX% Tapestry. we opportunity our with and King at the L'Oreal with together generally and Slack, settle with I'm Slack also travel brands Cloud, Service constant Coursera consumers Customer great Mercado grew and constant Dreamforce, Live Energy, In and Cloud available our growth decelerate HQ CBRE the significant emergency XX% or year-over-year at Commerce like organizations by heartened Siemens with retailer. help MuleSoft. Commerce grew seeing our selected go-to-market or to local back transformation product in flexible Atlassian, I'm XX% in of including new Data, live will an GMV our MuleSoft including National as The nationwide. leading and the we e-commerce rest the which Tableau, expansion partners is or Marketing pre-pandemic Our XXX in of currency, like we XX of are as we're over constant Nation, XX% Group that and currency, have integrations industry line XX% relationships media seeing includes one in Libre. managers, including our every customers decision-makers wins to Slack over Slack in and by XX% norms. of employees its Service, Slack platform era Thailand's Weather which to currency safety X,XXX National build grew Weather Power, and public connect excited expansions say have of digital incredible where platform with down progress

about be of have on focused year. in revenue than clouds the as tailwind their our to our And in in were and another our We MuleSoft the for implementation growth finally, half are increasingly business on-track quarter, time back industry to the spot bright of value in XX Financial environment built our growing new to return assistant reducing of faster goods Services proposition a customers cloud brought are are line by processes promotion costs. our and industry the more the measured value including year, first processes, a half excited consumer virtual to into management for market industry The out-of-the-box Cloud. compelling clouds we've our the we trade this I'm and for in

delivered for been towards organic has talk alone, your through head Dreamforce, innovation data Tableau, forecasting, of pace our the we key summer In ability Robotic release intelligence like we to our stronger. As to predictive innovation just for never revenue for Process Architecture new our all-in-one launched customer engage is we Lakehouse this Salesforce going to platform. and new that a with data And a service how commerce small week, and transform marketing, Automation suite sales, Easy, businesses self-service Salesforce. MuleSoft

growth to today. hear you'll committed this more at to I'm operating XX.X% our $XX As durable scale. and billion announcing We're repurchase that ever we're committed first our from share program excited Amy, margin we're year,

strategy Our is capital allocation simple.

cash We will free we continue flow our expand margin to as scale.

invest will We our in innovation. organic

importantly, grateful to our employees to provide our our they dilution, with compensation of a and offsetting stock-based I'm impact customers most M&A. the XX reduce will future maintaining agility innovation, both helping and navigate We all uncertain resilience these so balance and healthy times. sheet by by need of Trailblazers, the partners to any fund million our for

Now discuss to details of over Amy the quarter. the financial to

report Great. results pleased financial QX. top Brian. Thank you, is pleased congratulations, bottom I'm That line strong top for QX. QX financial Bret, bottom-line and -- to and in results report and strong to

and drive to Bret, our efficiencies grow our both business. customers you've As and their Marc diversified well-positioned portfolio help from remains heard in

to their on customers relying roadmap. more us Our ever partnering with are be on digital than their them adviser, trusted

and continues the continued we cost walk savings. currency. headwind currency. was constant Cloud XX% companies In Total quarter. year-over-year had to the dollar constant more FX Cloud XX% highlights headwind to FX XX% line XX% for year-over-year a of year-over-year XXXX, throughout grew more critical or strengthen billion, and few continued and commentary. about the realize a customers' $X.XX guided. XX% results help QX, in with we A piece revenue from for efficiencies our fiscal grew success, XX% the as Now, through to represent as QX, growth. constant second from Cloud helping Sales $XX currency in let customers me the of than was Sales our be productive QX quarter drive in beginning our top quarter. Service up In million

As seven have growing to we by with quarter, $XXX,XXX QX, customers. and transformation, on in greater our who continues the year-over-year. digits. customers our fifth adoption. continued strategy more revenue of purchased of number grew with Splunk million. Slack, Slack customers And $XXX continue QX, five the again top of see XX% focus with deals traction XX more clouds, And than In consecutive revenue spending digital their to customers multi-cloud included expectations number gain outperform or And double in the Slack. grew of to than for

a pleased for billion are that of $X constant with of data more Now, of to of revenue Tableau and billion a growth currency XX% $X revenue now generating passed XX% say this clouds revenue or in was of MuleSoft all And quarter. X%. I'm data. update quick Data in quarter. on growth than by XX% five growth driven that, our total

products. As period, a more quarterly our half is reminder, in total value core resulting MuleSoft volatility than other recognized approximately of contract Tableau's and in

decision-making $X.XX. attrition. and non-GAAP to X.X%. at and continued QX lows, QX, QX remain was CapEx free company's non-GAAP at non-GAAP EPS million, operating prioritization. EPS $XXX of was of GAAP $X.XX. XX% million, in EPS benefited million $XXX strategic flow $XXX and down resulting cash year-over-year. $X.XX down flow year-over-year. in was driven cash QX the Turning accounting XX.X%, margin GAAP by investments Operating record by focus EPS XX% ending by was approximately Mark-to-market revenue our on Rates was disciplined $X.XX

our economic environment. and to to current I'd performance the getting like guidance, before RPO Now, address

behavior and measured customers, layers, started of stretched our last the which deal and Marc month the compression. mentioned, approval quarter. see began to cycles, in buying Bret we in resulted This both more from additional sales As deal

in Slack create remains and a was consumer services commerce more while and while close, North America perspective, leading resilient. in pronounced saw self-serve were Japan and to the F&B industry during businesses, pronounced macro most most And Geographically, high energy markets, indicators. and an tend saw strong. quarter. retail, consistent we and In relatively and marketing while European be from goods more addition, behavior sales tech, and and perspective, this financial media service major communications product a impacted, the our slowing more decelerations, From which was stayed

Turning Obligation, revenue XX% year-over-year contract. It approximately in Performance XX% and guidance. to includes point future constant XX% Remaining Current $XX.X ended currency. $XX.X up represents of billion, which Remaining This headwind up billion, incremental our QX or RPO, Obligation, FX all CRPO, at under was QX or year-over-year. approximately beyond Performance X

Moving QX to guidance.

revenue FX $X.XX billion $X.XX This to XX% growth XX% approximately expect and million in headwind. a currency. of We or reflects billion $XXX constant year-over-year

from We $XXX also expect the Slack. million contribution

As Slack of rates we XX% XX% a expect quarter expected reminder, of to $X.XX And GAAP be of year-over-year revenue. EPS $X.XX. growth constant contributions normalized. EPS fifth in approximately Therefore, QX to is to to will the represents and or currency. the growth be year-over-year non-GAAP CRPO $X.XX $X.XX

our fiscal year to turning guidance. full Now 'XX

XX% This headwind or guidance. our guiding the million, total growth behavior previous We July. is customer now The of are FX year-over-year we an approximately $XX.X that incorporates since 'XX billion currency. incremental revenue to to year-over-year, beginning million $XX.X in and fiscal at saw $XXX now billion trends year-over-year in $XXX constant XX%

a the Euro, the most is Australian Dollar. reminder, lesser impacting and Yen Japanese the extent, British the our a to Pound, revenue currency As are the

$X.X a contribution guidance to Our assume from billion Slack. continues

the a of profitability see XX.X%, am a term. basis increase Slack. margin operating hold remain year-over-year. buying basis non-GAAP to This customer points our guidance at from XXX an roughly And committed 'XX I company, more of we fiscal pleased points deliberate XXX guidance to margin we As includes over while behavior, long headwind

to hedge our our a there operating generally because in reminder, a natural FX be and the currencies, same expenses margin. As are in tends regional revenue

adjustments and $X.XX For to the expect $X.XX that of of portfolio. no non-GAAP of assumes EPS guidance mark-to-market further OIE And we $X.XX EPS our strategic full $X.XX. our year, please to GAAP investment and recall EPS

updating XX% to cash growth year-over-year. fiscal are our XX% We guidance flow 'XX operating approximately to

Our changes certain guidance associated continues to assume tax from R&D the law a of requiring taxes with X-point costs. capitalization cash headwind

year 'XX, slightly guide, We growth nominal revised results for a revenue in expect revenue XX% X% This fiscal year. cash the increase of guidance. quarter's CapEx be to to fiscal above free of reflecting last approximately over in the flow XX% full

the So, to their CEO, operating laser-focused are to growth. to product and focus help with as customers guidance. And portfolio close, achieving on drive diversified digital efficiencies and are we our well-positioned their CFO, and we teams, with margin including commitment executive our CIO, our strategy, investment disciplined decision-making a on

and a repurchase let be This announcing the program September detail to will very, strategy. go that echo Marc, capital Investor pleased where our today. confidence new me Bret Lastly, at into allocation seeing I future very forward in even Day have reflection of we are share on we step we more look XXst, of Salesforce. our to the And on is everyone

Now, Emma, the let's questions. call up for open

first you. Your Stanley. Keith the from Instructions] [Operator of Weiss comes Morgan Thank with line question

open. Your line is now

Excellent. Thank guys for you question. the taking

strategy? about perhaps is our definitely is as top talked there go-to-market? want in ability sustain impact XX.X% even in the the able operating able any the does sustain go target sort related, that guide side expansion? on to of meant down. You business And anything is Amy, to all lot the in be guess, understand revenues that impressive leadership this think to now in Gavin of full more what's sort that really macro is year of causing Part a well. the revenue change had equation what's in And another But right two, another that to Very or part margin be definitely reductions around sort Thank to think is on operating sustain what one. in to of to see and there mind shortcoming your for equation. expense We anything there people Is those side the any I us. execution margins? distribution the this? to So, takedown of the coming everybody's I expense what that address checks that's with the of see that? to and to from Brian, level I of you. operating to gear way invest sales kind more margin on you we to

Yes. I'm happy and to to tell that well. and about you, the so you're We foreign guide is talked is around you down Keith, two the One as exchange took environment talk points. I'll really right. quarter unprecedented last we obviously that just

to maybe think were going I first see one we was the on. of really what

just Somehow so in hit. are ground we dramatically the we with the being look where of at But on the now some right have where with right to that are look countries euro. yen, we these now been

we're communicate appropriate the business the is? we we characterize put to where the I the to communicating way we yesterday. of place want said I really exactly guide, are. for as status And is really of to the in emphasized, we July, year? kind because where team in that which the we and on think we business we to And in exactly we're I think is the how be side, where has like, parity how it's I And want And is as metrics really foreign where just appropriate -- euro together do an some this us? mean maybe we're started the really think correctly in broke where other moment exchange. do a be starting what unprecedented see for

sure Amy going amplify as that well. I'm So, is to

Marc. Sure,

I circumstances seeing you that two think on you nailed key as guide look there's drivers. the the is now. we I the right And under When it that. we're believe know guide, appropriate at

first impact pound, our part they've rest of the seeing currencies, forward all The near as and we key we're weakened the historic look topline euro, on levels, the to the FX, is that to the year. the yen,

end saw part, the For distinct assuming quarter. that in about the remaining of the for was the guide, purposes we're behavior endured near there the customer those of we called the that And out, shift of buying we conditions a year. half as through

your to I was your question, part think turning Now op which second margin. of on

happy a was that that, line. not is holding of top and know, a you disciplined the change. down is more bringing single are I very despite largely we result coming As to from This committed one approach. It XX.X%

incremental We're believe look asking the prioritize. which We each step do their businesses remains at and to leader that to are up our number invest continuing business. still are continuing I into we priority. unlock efficiencies and growth, across one to

years specific are hiring. On In very for measured few over some travel. a drivers, the of continuing on T&E, approach approach take the to terms we've a of the deliberate and from to again, prioritizing we continuing definitely are benefit real last customer-facing on decisions And estate. made we

of next Your question comes from the line Brent Thill with Jefferies.

line now open. is Your

perspective regarded, to think would comes as in I XX lot for curious the transition this? lot about but new that address the of with over And concern new period? know there's sales just And a there's transition some Brian's on your period I'm been investors hear talk that years company you of highly role. Marc. can this he's afternoon, could I if Good love you there's and and how a

with last be my went of transition mean you went and team would the management that pleasure. of lot the the Well, think he's part time trusted And look, only XX our through I I was pandemic we for of when two over the was know ago, he into Sales a Keith. years. been Brian, years a Head

with for, run to He remember, I continue didn't it. Brian I to in or job. may want fantastic think, put global two one You quarters a sales, did

was Chairman, for I and agreed. International he come And he Gavin it -- I And from is a asked would of more to trusted we hand. And grateful to two step Brian be know couldn't forward proud I think I role and really in I if just So, And Brian honestly. last take then here. asked the or this can't now up of remember, his have right years. we European Chairman Gavin that.

And period, Brian. good such he been key I at couldn't already program. runs operate and the part has actually. to already of imagine And our relationship any forecast transition with the don't In terms period so expect I already transition our who sales ease. that with transparently He's a calls. I'm everybody and and holding him organization seamlessly a all, of will anybody

professional low bringing other excited add to organization and Brian is, our The focus our move... part time. really has success, partnership just been together running our organization. really our has I'm it's to attrition for of a customer And the the our I and opportunity with our historically been I on success this rates And I think philosophy. thing And pandemic about want a long story important global the organization customer customer think of outcomes. And services sales

surprised of a is us, we how attrition, right, Well, great he's definitely Brian able how to low get? been And both job done.

to that me sales a motion I think really Marc reflects our from connecting about deeply success philosophical motion, and view our And philosophy.

just you comment want we Do on can Brian, you just answering while this? the step this? out finish of to room

Yes.

that of are customer together it's our look this half I will at role I very past we're and actually running working And for. X.X was the humbled all, second Gavin. the Marc by and and opportunity looking a for business been outcomes looking comments. of this the critical and of to close to beyond, motion business. drive years this your sales as think sort of I'm for year in we First this I've customers side-by-side the operating success COO with him for

attrition they're side, sales. to the the thrilled technology results so the are lead seen the with the making And excited our results getting and we've investment just thrilled that so from customers in I'm on with the

on transition time, be? direct Brent's this a how address hard transition is just you question going of to Can

I'm running to transaction that in I travel are no been big there to value making them. I've than actually, in ensuring was go-to-market -- we're changes with forecast customers be single be going There hours, that and our our measured the to industry think it customers them getting no business Marc. time. calls that already. will customers we're in transition we're closer yesterday, on other delivering in working every

time. transition this on take to zero excited very So, with

you. Thank

from of with Raimo comes question line next Barclays. the Lenschow Your

Your is line open. now

Thank terms is cycles, guys. in from And Are what remember do had obviously, or seeing unique projects? times bit Can you. that? well. you sales higher Thank you you terms a vendors nothing to seeing lengthening you see the speak the of generating, the as we're heard I well? you. Because talk slowdown that about it's because front as there's old to cetera. can Can of that you in of happening now other you kind client We little that from et -- of revenue the prioritization, certain offers that always priority

for thanks question. Yes, the

the of are Digital I'll of trend you, all portfolio, the of that transformation investing at and ends I their top secular we're the fundamentally, tell customers experience, think the customer. and priority with our remains continues. First, our digital trend customer customers' employee their digitization And and of with into starts transformation that top really our experience, list.

time is three I say, is think to increased you're an what things. focus I One on, value. seeing

customer drive and The these third to growth. reducing consolidation. cost is savings in projects other complexity addition And is ensuring and vendor that then the topline satisfaction

chatbots think, cost like implementations. I multiyear I service it's make things projects stories to digital whether opposed do having about technology, mentioned the and of Eats, great pay examples protracted because up really really take to are out themselves like put Uber for it's or how as self-service, Some these you

or innovation performance. looking the strategic solutions which mentioned perhaps on edition, also sole Salesforce take drive like Brian, as some getting at more vendor them aren't to Easy, point to return now as vendor to to vendor, there investments that hold really my our less, their use customers to are high customers do consolidation taking their and our we're enable is to think really of that standards, right trend customers Sales topline enable our you of I Salesforce and this anything are Cloud to with out I the they most want they look look for, seeing bringing script, our efforts earlier you opportunity add? to is we're some be of and in Unlimited bottom-line out to if a is sort for the technology which advantage

talking sure to and CEOs, you demand office seeing and the to make the remains need environment. one their I Marc out No, with great we Bret, is you it for we're to and digital heard front that that also question, when priority, we're feeling them. priority both Raimo. I'm in transformation agree delivering We're And number

environment and seeing very are some still business is some of right additional facing now. demand potentially We our good longer and cycles the layers generation pipeline we of deal compression, solid. in deal And while sales approvals are

And on CEO the that are so we for as priority front every there. a out seeing office spot you're

Thanks Raimo. question. go we’ll next And to

comes with Bank of of from Your the line next America. Brad question Sills

Your line open. now is

It sales out question. on Thanks looks taking in Thanks SMB but Great. you impact. and the saw all the to for nicely you core enterprise. macro the marketing service held call where have sounds like my for commerce, didn't color

in So track those enterprise, any you expansion Thank the business this and the how specific core color the on bigger core so quarter? large deals much.

commentary then well. and your I'd Brian, start as I'll love

reflects As have strength the I in, you're you CRM to core our revenue strength I ago, remarkable. in thing really call doing it growing at our think, our the of strength is in of I rate lows is, the other that is is the much historical XX% well. past the Parker This product so business. currency as at said, I Sales business. And at incredible. want Marc out think seeing the attrition business. years just think XX story, our quarters number constant it built the being of XX% Cloud And actually, and And been core growing continued

SMB, CRM the is to of serve business the see durability the add? want that the and seeing any we and of as on that portfolio, there relates rest our GMV I really to our our we segments diversity the core said, settle Amy norms, as in think as we're pre-pandemic in And things down enterprise. business, articulated, but to so, incredible I I deceleration, still And strength it the you durability diversity of serve. diversity color the Brian, of industries

Yes. Well said.

and are for and continue. our And Cloud Service the the customers. expect saw On you digital the centerpiece quarter sort growth that to of we transformation the in of Sales our

compression of to before, many, that their grow in I've we've used digital as the and and transformation, can in maybe but these a land measured piece, our business used. some a maybe people through strategy a it's more smaller for is a years, with see something many starting surprise. approach and a lived larger we've some expand strategy not seeing you cycles are three transactions can take We enterprise of see

that maybe in so, a acceleration of engagements And these do bit smaller, we quarters in the are fact some despite these come. customers see to

that in very was there going compression out top yes, priority. accounts some enterprise execute a in being transformation these opportunity can in with of go we confident So but digital of us the forward there the we front business, large against are

comes question Goldman Rangan next line with Your Kash Sachs. from the of

much. you've team, slow or it at reengaging data Thank some enthusiasm lot a to so the What used they that versus momentum. to before, sense, of leading But you deal the congrats all delta looking rate Brian, they growth do Salesforce reengage cloud? Brian, much. a way business. the very news look very as your saying it so through turn and what they're could you customers, Lots a when in is from is their basically of back on know, in in new to rate. say be I What same congrats things the the of are Thank cloud customers Tableau is get Salesforce, be as might has size clearly, can, would you on their as for and the close maybe, data been macro or to your around that significant new guidance in reengage some Salesforce. to And changes. indicators as exciting level business, you had My the MuleSoft the at perspective question well for to want the that you position. talk I the management the opinion these are to Marc, cycles on that. with old

all question thanks kind I the First of and for appreciate comments. Kash, the

is the way customer their leverage wanting a a second is for is because are to business it transformation operate see saw will be every very great in tailwind say to And We in it's heard license a headwinds about half as the trajectory year. feel feel about data MuleSoft now, right critical digital you Tab to some of growth the in and businesses component those both where some us We based. of better to On on our of the have great particularly we a data up good Bret to business. business, unique there. insights this our July you can that they immediately more show with revenue that. tend of

such lot half. and great clearly, a focus So, feel category the a of these digital of analytics second in it those component every transformation. on accelerated a growth because integration for both critical businesses about is that We as

on there of think at we saw we going second your second going not this. year in the we're to on would July. with what our feel are half transpire Bret? of so appropriate We out coming for I we're guide not and where being all. guide the So, economists they're like and based to big question, on when say no concerns people are Marc

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comes Your question next Karl with UBS. the from line of Keirstead

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and Maybe about it's the you. Thank Marc share repurchase. to Amy I'll $XX and this billion direct

then for And the off the signal do think large perhaps table time a your is large this M&A be line should interpret now? maybe the Marc, much. two-parter. move everybody as a on you to first may for maybe Thanks the so right why that with repurchase? this secondly, So, you, forward company's development in

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Yes.

cash it articulated free we're capital you I expanded more generate Marc, to overtime. one, continue strategy was are: to flow saying… to I the think, our I become what profitable well. when number That's that allocation pillars mean this Marc mentioned going of before, but

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investment. think committing this the year -- is committing critical margin for well to so I Bravo as for the to

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comes from Evercore. Kirk the with Your Materne next line question of

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very thanks much. Yes,

for can sort your strategy plays if just with an backdrop? if come of seeing and maybe kind how bit one industry cloud deeper customers all the curious you're strategy Thank choppy you more go just I then Bret, a strategy you in a ability and stress a think more you on that going basis? budgets this talk I you go is about was the to macro update as out into can of could give was an And I what there? that. Bret. industry on us just is that for important bit. wondering you. little little on under And how

Thanks Kirk.

ago, implement of transformation. box. can And lot That of Velocity pay strong our sort stakes a of been area of you're areas works on business It one credit of which they actually the there's actually that Number has to as this or in their that work a huge of David attrition table the faster get been firm our alluding rates strategy services It to focus value -- to, they that don't for to digital independent top was means part the is industry is vendor actually Tableau, us time platform business their advocate We Schmaier, industry spanning the means MuleSoft, his is lower are consumer think clouds It's than processes processes to of acquired workflows for built wide these Product it for resources of of Officer, And our have to goods a which line you particularly industry-specific Customer from software and who investment why of of a industries internally. and cloud we the couple years stickier, Slack of range where strategic services of financial clouds building our marketing, can differentiated. XX CRM I to XXX: huge our value company, manufacturing. us and e-commerce, sales, and that health Chief service, solutions customers. essentially our care, industry and have a lot they think their are It's a out our and a professional out box. is go-forward growth a need taking cloud. strategy. means industry for

time our More have you of one works option the to you'll of box, faster clouds, get If an out wouldn't you? why value. to industry buy

of investment huge a for it's So, area us.

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kind when of to scale see this with then. look this going building to feedback XXX, to your Customer You when I'll get of and all end that's have we Dreamforce, the about and all forward to you're begin at mine

Thanks, we Phil over everyone and we everyone us want next to quarter. and forward thank to joining for seeing today look the

today's you concludes Thank attending. for conference call. This

disconnect. now may You