Salesforce (CRM) 30 Nov 222023 Q3 Earnings call transcript

Good afternoon, ladies and gentlemen, and welcome to Salesforce's Fiscal 2023 Third Quarter Results Conference Call. At this time, all participants are in a listen-only mode, and please be advised that this call is being recorded. After the speaker's prepared remarks, there will be a question-and-answer session. [Operator Instructions] And now at this time, I'll turn the call over to your speaker, Mr. Mike Spencer, Executive Vice President, Investor Relations. ahead. go Please

Good on Bo. call. thanks joining for Thank fiscal afternoon, XXXX today our conference third us you, and quarter results

Our Vice our and and and can press Marc Financial Benioff, the filings Officer; of Co-CEO; is Co-CEO; release, call Bret Chief Amy and today's Chief Taylor, call a today President be and With Operating Brian website. replay on Millham, Chair Officer. me Chair on found SEC Weaver,

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

SEC Some prove factors and of of today included over And assumptions, to could assumptions that Marc. XX-Q affect -- not company our results be statements. forward-looking or as materially of contain Forms uncertainties change. are SEC and and could other materialize statements any on incorrect, these description Should recent actual and let that to our affect in required A comments hand differ forward-looking statements. results other XX-K, me we responsibility these filings. update our is our which undertake these these law, could that, risks, assumptions subject call do from report uncertainties Except forward-looking our most in to risks, filings, could risks may with by the financial any including to should

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recently share various in one deals number revenue somewhere but team XX%. some And now, moment continue CRM. XX% going margin delivering currency. proud situation XXXX, and that nine for in second. we're operating with scrutiny, think America, especially this to in can a XX.X% proud as as also, it get was And to receiving when gain growth see think, our that's you And to IDC foreign even, and was quarter look with up like delivered to for stories, done quarter. constant closed I'm greater back us. the for ranked amazing in we XXXX, talk think we've that focus now into think We of Dell great operating just we've we the I RBC environment, a it And for of on that back as exchange And well. down and Wealth transactions. non-GAAP about decisions the that we I'm delivered to Management I think here, I row. Salesforce and companies years like in And even I crisis, the market going at a a record great margins. purchase in And I continued close record other marquee financial Bank also

So we've of way long period short a come a in time.

our evidence profitable So this has operating proof continued on our our further continuing growth, performance quarter of market obligation. And great commitment growth. growth, is of our share continued been remaining focus a focus on to our revenue growth, that margin

$XX RPO is incredible an Our now billion.

a had. Now, dollar even few quarters, strong as had in last a maybe stronger I've the quarter quarter, the said than we

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see And expected We for the of to of of the revenue, million continue surprise and $XXX impact course, year-over-year foreign fluctuations. year. saw total the we've currency is biggest year. we quarter, of our that $XXX to a In the full headwinds million

obviously, A high Dreamforce initiated through year is these and demand. with And uncertainty. these market we've a behavior our is economic and what near customers crisis. my even situation current not or level we world, to is really as this financial of have there whether market have could the the it's nowhere have They lot severe I'm been in in volatility haven't of navigate XXXX, not best the during say crisis, of types lot and the as And of beginning a expected in other or XXXX lot variations a or crisis travels that that first around happened seen reflects what At XXXX, we've seeing before. is because but something foreign who buying year. repeat are some headcount reductions. market ago, We that well. are when in XXXX kind that that saw even we've asking XXXX, economic how patterns in a seen they Now people, lot reluctant of never that this in in And of guidance. revenue we to capacity, got adding we just seen distribution situation expand occur they Well, that, CEOs froze they exchange service saw been about those to our our in customers We weren't as early their initiated themselves. hiring, saw XXXX.

of in accelerate even to numbers, of to market desk this in focus decisions really went our that looked adjust be they their CEOs tough let's or radically our able that's and that, shifting It XX, on years tell turned the took we stop team who's of operational all developed and What expanding off how immediately dollars. face own we've things led it stop had of numbers reducing navigate all should has and maybe capacity when to of investing economic costs, say, plans shocked discipline And playbook. be to again, see right a or about started of change made, we us everyone recover, where And on. in our an with have and all and increasing were when XXXX, how marketing from headwinds. let's We ago and a those share the -- a able We number ago. a an really to that And We hold that expanding that take really focusing their finding that do advertising, gaining get couple we knew when and areas. us the we headwinds what Well, stop actually think of some in we market so shift what capacity? the I to distribution as you, things can XX years stock Should was I things again. it's on, were strategic XX the at from economy foreign whether as all excellence, the lot again. have company when service the to operate spend, once in we the growth. to especially And productivity, as -- exchange then to become to but even our we're actions happened of operational to opportunity well, in feeling you and efficiencies, that I playbook critical was we back We've we how we little start some down. use a and we we happening. talked shifts now? sudden are issue our wrote XXXX, company. kind

we're that especially, squarely environment crisis buying measured problem. creates that since We became economists. we short-term moment, didn't acted. macro believed in challenging and becoming were opportunities, be foreign always was exchange you believe I've an environment Starting know in then this you headwinds this to Now we're July these going and more point, we've not told a economic year, and the And of complex. that increasingly

the think because what that about sure have make, headwinds. start to see And positioned reporting market able share, economy on our and to to to increase to kind et invest, anytime data. operating profitability, when gets better fill assuming You and our the what's our a going be the understand following gain recovers. they we're happen, works any not of or lot, continue with we on we such is we our strong margin, do to growth revenue know recovery when well customers, this on, to We're what happening they we don't to just of playbook see our We're economy that focus global we I when the these changes focus know will cetera, a especially soon. but exactly lot make it

billion, that headwind we're last operating non-GAAP also XXXX quarter. fiscal $XX this year, of XX.X%, Fortune expansion basis XX% increased with margin company maintaining currency. foreign is And customer our during like your you an you expanding an guidance that or of I $XX.X billion $XXX is exchange that even just And because exchange this this company. this margin. Salesforce is becoming XX.X% every headwind, company, everyone more, million fiscal a especially We're expected incremental a year XXXX of from our need and it's focus to and year-over-year, lot since a nearly XXX foreign operating that, the have points crisis to guidance raising mission-critical included on focus for revenue incremental knows to we that up on XX% saw time expect year-over-year customers. our Now every to constant in

successful great if When you If do has part going relationships at most a to transform thing major navigating get every one and continues dynamics done well. this and the of their all In maintain telecom, customers. of is It's costs this a company, global in you signing It's company be to connected they deliver to slightly competitive. be it's one to want players. example, continues in NPS the through that brands, not well becoming so that that highly transform competitive thing, if industry, almost to we're they customers. digitally and their all all this faster, initiative need with companies. But customers, you to to understand with you're you situation. that. major their focusing their transformational know industry. more connect critical make every one industry. with with talk down, every to these really time, telcos deal critical how We regardless we've through the to stay telecom each as important of I All a reasons why their look industry we better sure with customers. every working with T-Mobile for about the of to We It's score, on must quarter. signed keeping all this, there's the economic your We're perhaps by deals different They do service

done new working transformational exciting a of built one to of have most they've work incredible team on how this for their Financial is major for and It's customer who see crisis. working develop and and how Bank I it's the actually. more with for many to customers it's we've BofA success you'll professional to short on, services to golden Services, for a host especially our amount a very technical CRM We're they a of client such to and to T-Mobile with but time money, reduce how connecting time, we've the debt. their company drive moment they've been in a become amazing in single tour them on where next an that, especially services businesses, I teams to saving in of next-generation for the tremendous But increased their we're and the financial standard. treeing and them productivity corporate with vision executed Now X. City merger going much time that's years, so going December and business they're through bank to years, some where companies unite going a lot to that's XX tremendous has all, is transformations, the to week, thank many user expansion. relationship opportunity with organization And incredible going service work online, It's but to to to delighted It's T-Mobile leading have Join give more you you're with base. before And an relationships digital invitation. new want different that's with I it's many in his hope environment. the their well, this bank, partnership A our in and example their and the great from first Business stronger day. another just with relationship over innovations. so charge. person with industry incredible they all think of Well, effective, over that and to we're bank, to investment decades, a we're the Brian loyalty, go them I and and York an in us they Mike with work over and Salesforce join more. just through great financial us want been hear really a we're for our why I decades with ways. New all plan announce than many financial America, his now been experience them been world and or to be every also They're customers for expand great to

incredible to Now company. ever, Bret is and to going like He's of have has one that before say I and I'll Taylor very tell leaving here. has me, be joys something, something you company I a end, person. right experiencing him that, loss. I'm are to feeling I want it's this And brothers. great did and of him love tremendous say And extremely sad been to deeply. the of been not my that having I'm Bret you, tell an now. I I the for

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deeply, We're love home that a that you get to you here. to back know you have -- we you somehow. very try going You

that you're always get our you're we of are not. us. to this going after sorry this going don't to with you're going to point. about work Ohana. upset with of I us see it's at know you're to I that end continue So you're And you, somehow a be And going out know and you of the to be and year, we're be going think us because so this, part alive, really difficult for moment even leave of end and through Bret, this But we to year. the love to company the But the

Marc. as to deeply just just am want to that you, just how Thank well. keep as expressing composure my follow And trying the I hard Marc, It's by team. entire start, I Salesforce and you. to grateful importantly, to

all for past through I past public without the when just this cannot partnership. would you to be in me. what's am been absolutely been years and easy while past joined leader, roots, feel I've helped recently to tumultuous economic my the this, more years, to our return definitely year. in in connected most technology and I'm the stronger, going that remain here, relationship to It's customers career. we significant and a And could year, few the transition thank incredible, the transition, Marc you never and in strong now quarter of Marc, the you, shifts. fiscal personally, a trust, to there enough the friendship particularly given entrepreneurial important company. of to after company like to will co-CEO me has that I a and is our and crisis, to The mentor not pandemic. to most amazing turmoil, ensure importantly, no this is time always, I my your grateful. delivered a the think long Marc past company, And I proud as us, said, always And time even been joined but world for incredibly and always have the years, has future you've six-plus fiscal for reflecting the global of and part a we've I organization will I innovation have part professional been I I of strong it I Salesforce community the more transition, years, particularly not success landscape my right close imagined And be be and confident end before tectonic for the remain I've of been the this today not of have this been over never the I this smooth really And has six ensure community. in as become economy truly this a the health said, such couldn't amidst just be as their few For time company. my the the every customer do I through only a the close

performance, the double-digit a delivering strength top top had operating of growth we solid discipline with profitable said, at our and Marc -- scale. to model commitment As and demonstrating bottom our business and quarter, line

and deliver mission-critical product on innovation, to strategically our differentiated. is and continue highly portfolio We organic positioned,

over value in Genie are And week, Cyber our on Data in exceeded records time automated, overdrive, on Genie, The as and and Marketplace our exchange Cloud at more as intelligent nearly adoption by canvas, unparalleled driving customer the all you customers. Genie building an every Net makes expectations. this day. part position more, of faster with average platform XXX And Customer Marc of Zero XXX category. as particularly billion customers, real-time, single every our already app a is the for our every our of to CRM processing our Slack past engine has literally particular, our industry. Dreamforce, is marketplace Customer in and ecosystem Our innovation saw leader Genie, mentioned,

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on three delivering at customers. are our for scale We all today

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service, launched new our analytics. and multi-cloud marketing are consolidate closing These expansions. bundles on product driving also also to growth. sales, We're deals tools for efficient product and their enabling bundles transformational Salesforce, We customers

our our of XX quarter, included or This more seven five top deals of clouds.

customer great sales Snowflake companies to constant currency, Cloud XX% Thermo most service at $X the with customers for Carl brands. including XX% healthy year-over-year, currency, Bolt, our a like help continues wins to Fujitsu. to drive Zeiss, costs. wins productivity XX% world's the billion exceptional let's and Fisher. XX% in in performance. Cloud, customer year-over-year continues approaching revenue grew or reduce Dell at Service quarter, our grew Cloud Sales customer and Service important Sales the constant deliver service Now for turn and flagship, cloud their in Cloud experiences

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these I'm so company I navigating our our this became first-time a for for for through the crisis, became and grateful customers and you relationship CEO me. navigating and the company CFO first-time everything As has done

just they miss know again. the also you, I your you steps, success with you am it work has me truly by to you. I'm start for be And will saying carefully, joy thank incredible but excited equally been for I six Bret, you on to Great. let years. a and last next going

Investor new left to And macro operating of on we as constant a generating of quarter in Day our grew Reiterating our day very that Despite we taking in margin XX% line pressure, employees am our profitable So for Marc's pleased focus and bottom I'm discussed team revenue of operational proud business. lean increasing major our for all results nearly to Salesforce during and as I growth is growth. here. top record at it's QX. best-in-class a our of turn aspects profitability. in report all across comments, currency. excellence September, another double-digit

driving As remain support cost well customers on value, we through vendor the and economic environment. relationships, platforms positioned consolidating optimizing them and focus current time to to savings

XXXX, for quarter Total third year Now to QX constant or XX% results year-over-year, the was our commentary. I'll with $X.XX billion, XX% revenue fiscal for begin in up currency. top line

to a headwind to exchange further the our results, dollar Foreign strengthened as the throughout quarter. continued be

For was total expansion. forecast. million, XXX Investor geographical more at industry impact Day, three few have Again, balanced as had Advantage, A Customer QX, FX from highlights pillars: we quarter. growth $XX we million outlined than solutions the approximately $XXX the we and

continue of the to All growing base. our of adoption reflect across customer our these portfolio

our by base or adoption Customers customer XX%. continues. multi-cloud increased by First, five with over ARR more clouds

our Cloud. quarter XX% of industries, included solution revenue growth. energy a tailwind Second, highest In XX quarter. Seven our clouds in some continues the industry clouds Automotive the our grew to this our utilities, above be manufacturing performing and to recently industry announced strong and ARR of

customer prioritization. are currency, Operating to attrition driven the a CapEx accounting year-over-year. in Americas XX% our million XX% and as our company's was Mark-to-market QX constant and margin in XX% GAAP and year-over-year, environment. by base below $XXX again our EPS EPS resulting $XXX was hiring the EMEA have GAAP $X.XX. was And operating QX, million, million, XX.X%, strong grew in by the that ongoing XX%, focus execution, XX% down from providing cash cash QX of geographical disciplined XX%, was you in grew on a is increased resource QX in $X.XX. flow heard, by driven strategic $X.XX free Finally, currency. this year-over-year, investments non-GAAP reflecting flow non-GAAP value was perspective, tough of both grew APAC non-GAAP and slowdown billings. in XX% constant lower X.X%, $XXX revenue operating down services EPS which

the QX ended performance point revenue finally, we up which of was at year-over-year our I future billion, ever billion, incremental This share one milestone a Salesforce. approximately currency. to billion approximately $XX XX% represents program constant corridor on obligation, announcing guidance. and QX. under our to to year-over-year. during QX beyond or RPO repurchase earnings Turning headwinds last pleased was CRPO, And up in first remaining all shareholders XX% contract. am Current obligation, performance XX% share $XX.X includes FX $X.X remaining that call, After QX for returned

guidance, our current on Before economic to environment. moving to like comment the I'd

compression, in measured You led to July. elongated that approval and deal in we layers This additional behavior customer recall beginning cycles, particularly quarter really last sales buying deal noted enterprise.

to As an more the QX possible. intense progressed, we return saw on even driving buying highest environment, dollar every ensure investment customer scrutiny challenging

from continue automotive During Japan and From markets, QX, most we the to major and this and goods and European an while remains behavior a communications commerce pressure was manufacturing, perspective, perspective, And US impacted in more retail, while media, and energy. our marketing. hospitality, resilient in customer travel the most resilient. see pronounced product for spending and industry was more consumer

to our guidance. Now

our year $XXX million $XX.X This growth on in currency of despite to guidance our $XXX million. last billion since revenue call. maintain FX year-over-year XX% incremental total are First, headwind pleased XXXX raises representing fiscal an the constant billion FX to XX% headwind year-over-year or we revenue, $XX to

guidance above billion. our $X.X flat slightly includes at addition, In

to we increase XXX guidance we XX.X%, heard, fiscal from I of an expanding approximately year-over-year. headwind already XXXX committed our also you've XX basis to profitability guidance our term. Slack. over of this deeply raising And long includes As basis are points margin non-GAAP am proud points the are that, operating

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

we $X.XX QX, GAAP EPS expect to of non-GAAP to $X.XX $X.XX and For EPS of $X.XX.

be For challenging non-GAAP EPS in of guidance fiscal expect year, our operating to year-over-year capitalization trends constant in approximately the to approximately customer EPS flow to the includes continues be QX growth cash guidance We $X.XX. revenue full headwind tax changes, which is and XX% results more XXXX of of we the behavior, for with $X.XX cash guidance, by free now fiscal our the CapEx flow requiring R&D law We from fiscal year. expect billings. previously our growth the $X.XX taxes expected previous XX% to of the approximately certain XX%, at a This This lower for associated approximately is now CRPO to or expect to of X% costs. as in This end be lower three-point discussed. currency. incorporate cash X.X% GAAP driven $X.XX for year.

a XXXX. few Before on I close, year thoughts like I'd fiscal share to

unpredictable an believe year. healthy market. looking foreign are macro we are that their ensure the provide Therefore, we will time, next at guidance also Compounding a experiencing the revenue as customers unprecedented very businesses to environment are pretty this is sure currency be for discussed, dynamic fiscal to long term. our for it As

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operating XX% our XXXX of unwavering, towards to least will flow to as XX% any commitment we and capital continue fiscal inclusive free non-GAAP are of average cash And of annually allocation marching Our at decision-making to disciplined business to grows, is shareholders. our target XX% returning we target decision. on our margin,

up we call should the Mike, questions. open Now, for

take the we'll That's we'll Amy. and to good. first you, question. Thank Bo, go Q&A

Weiss take question Mr. afternoon Instructions] Morgan our Spencer. Keith Thank you, Stanley. of [Operator We of this first

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And But also like Salesforce, level capable tell the some areas incredible organizations of to lot largest with in call think you of what also in recently and of a our don't call couldn't fantastic some didn't person. company, new team pastures, second tell in and boomerangs, I us very losing he's Keith. in and the their sad the my have life thanks, be are greener Keith, incredible at we operational came that with the still also shortly after in Harris, leadership are Parker to co-founder, I and this now the they're know have core you, operational the finest who there, have Japan, long. shock this back from we it's Bret, ELT And But them I keep company, out. recruiting the we not very work people appropriate not on. have done huge product salesman in some don't the worry, of and we our probably some years, lose. here you -- people, well tell and we really you well as walks work philanthropy which I today we well, to phenomenal have deals other is or And and not who great these one those moment, operational best tour do people it's over, have tell some everything you seven to lot back who company leaders is am the greatest. a who left companies, more on impact I and I and our or you our running great the is you, in well. as who folks Folks for with Bret's been where and and couldn't to whether includes for I'm Tokyo a his we've you call the deal a I because that on Tours huge people very the to happens bring and whom at the don't me delivered have Keith, keep folks I out leaders, management very who managers all in Bret what trying decades. -- of lose are Bret positions to team, work because in cases But to know bought have for call their engineering company such proud brought tell resources, in such And of Bret, would bringing a personal world, done the them, important be is of them decided know I World I he call and people over I and a think our I have because the most it's marketing over light joined now? time, years. up of long leaders many and our on people time, And on do we have met well. and to at a Well, light just we has how it's never on obviously, all loss marketing he be send we think me, Brian, a worked in extremely with want and have have company and level ended I great it's we Keith. to been Investor have it and last, great door, many a as tell that in They doing I software until as and excellence. reclaim it the of leaders unfair have we who people people Bret. company find and also acquiring good who to out him until, not And the we're and going of but a we how leaders, my And so to and or you, in world leaders, on of a And us back worker, us well, company who year think be -- you little in bit when Dreamforce's with feeling human put question. engineering the gratitude expect don't Days, I and to a it unbelievable in Again, for quality last personal are our the deep many whether was job, or have also done such leave. as leaders, team we in is what win, the to incredible until new have them this who it think while back whether we've the I geographic relationships I of I sustainability, do know

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prioritize efficient. that tightly from our prioritize T&A customer-facing review and look also travel. in real made panels estate to of we choices cost sold our to continue year this cost benefiting are in around to We We we And third-party have also goods the footprint.

putting So is the again, see go, can the where already in and I commitment we excited necessary here. think to we're I'm place. tools

Thank you. of We take Murphy from question JPMorgan. our now next Mark

it, volatile and gravitating may work relatedly touch very And -- everything. us you conducive how footprint, the back fully in-office, mentioned much. to the this and maybe understand thanks Yes. plans for the buildings? for trails, your employees the and on happy Bret, or of if estate real be Marc, environment you be including that Amy more little think wanted going that you you to just a just other Thank help margin is could I contribute expansion? to to do since see you remote Salesforce and could to ask Tower you some

had that expenses operating on that see to in level that don't of fulfilling And lot at this. absolutely. we you're And you post-pandemic. that a right, a are the things we focused are deeply this in that XXX% others First, we which company to record has need that Yes, there's margin pre-pandemic that and quarter, that our I you Mark, XX.X%, are hit commitment hope our we

how the office but office, there a to And who's [ph] someone and Darius, Now it's And no flexibility workers And that have pandemic years me Board in influenced me still every And many that today. factory. were has for I here. factory plea that their critical say have he's in think correct. the CEO in metaphor, part it's workers in you, runs interesting I Washington. he a tell kinds factory is those factory having the when being workers member, of new companies work and workers. Honeywell, single are with of remember and is greatly of I And during I And I advocated And regards the would the made and the for right to we remote environment very day Robin factory there's is have and well, he to also absolutely workers. all XXX% an of Chairman work he's for in very closely. Well, folks this us working business. the

required that workers. doing factory Mark. And is The work here the Now very know is our today, we're in you well, where we factory are factory. that

think we is that also call hubs And percentage are. me, we and have offices. who and agree But different towers with where our Darius around remotely we and the world realize to factories, know be higher. the core going that that our I I we even working are would You folks of think

the pandemic before for percentage was Salesforce of remote approximately workers So the XX%.

normalize For seeing somewhere now, XX% that Workdays. we're at other companies even around with mandatory

that a we're think do going I have rebalancing. So to

going have And yet folks in even at why you're just we the got the passion, sure I'm are are to banks especially of And And think I why in coming have of or finding more new other companies, need business in from I seen to why Slack in Slack. York quite new the never and of I acquired who bet very great be a not And know the realize at more right record growth folks we're is XXX systems be of between new think in back and even that. banks, find I a and your but Slack? new our we those now. why those though Customer XX,XXX on we're new maybe and we that. required Slack, And we've surprises we've channels the flexibility out areas need a there to many sessions, in done return banks, and think leaders even and way thing, being new to was. and -- I regarding multimedia work, some that at the lot we're made coming tribal capabilities and all Salesforce, here, we have you've we of Slack. you that's this, work. are office. successful probably it few please we'll what line reasons benefit you and most those have maybe New some all to And employees Slack But regards in of a that's the mentorship from of doing been I we're I work with be call will one important, of York forward training so folks And maintain will which one year this to think work. who other would to are the who home. you probably ways or even new will down come of who collaboration before are there things go college we'll they is and and the to especially offices We up But world, him going go ways also and But Ranch, call now. at in one actually we'll way whether how home or work, New don't environment right the the about factory to knowledge Salesforce of through office, jobs, saw do other all that that involving a integration tremendous have with in to because tools. core be maybe bank new

your how more office, how to Marc. we're and we're mind, back that doing talk be about finding So want have through you, the that's going never work in Brian, at it, straight, was. we're what you organization? to trying And our way look have I'm go to I do honest to going with you're a beginner's to have it in to you but with this.

but and said, Yes, I to I you -- don't anything appreciate just -- contradict it, Marc, certainly want that

ahead, should today that agreed. Why Brian. me hear Go --

better and Marc, collaboration, drives I better that believe being more enablement. together better really networking learning,

-- customers. a way there's that -- that our broad positioning new of we're to coming Customer our portfolio acquisitions products products, around of that organic the we XXX positioning to products learn we a and out, lot our the we're pandemic We saw have

talking more people I that asked really so office. culture time team to my operate, the customers. customers importantly, I've asked big like and spend that in out the on they we're in also think, us. how office. front And of like back for I have to in our a another, them when time I've that expect our spend we It's from connection coming and differentiation But more success the to one driving to our us, we recently I

higher whether that's and productivity ways, or I ensure culture drive to the time to so the of and performance together, in our want spending one the more customers. that to that front office And do in of out we're

Great.

so forward. that And margin Mark, how strategy and may then turning your assess and question real our to savings estate going about

to this and the space? but And how continue scale, That their So years, footprint also has past working are re-imagine only optimize our fairly significant environment reducing two hybrid using over included estate is how real people have work to not our right strategy. continued for now. they're we and

has When a areas. renew into to write-offs that Some consolidate is when that It these leases up, we benefit also opportunistic. something of continuing are evaluate. times, don't and also that over large we we come continuing see but from. you of we seeing are been lot do we It's to it when

every is deeper estate in real Bulchandani, new world. real along job head new use best an at the a Relina efficiently who say how estate incredible our most and share the have this we and the We of and looking aspect of it doing really

to go Thanks, let's the Bo, next Mark. question.

Raimo Barclays. We'll take at Lenschow Certainly. our now from question next

I Brian. you. just a question to Great. -- Thank for wanted

in of terms kind you're how you. about And of of it's should what you there's on like sales taking but penetration of diluting position also you the the in kind play of do you already terms your field started which cetera, macro, Like what initiatives think we think in Thank -- -- seeing in are force As of will important? how capacity, sell Salesforce. do you decent this a see out? terms how its relatively sales et here,

customers our the we're in going out the out for not our creating that is buyer CXXX changed very yes to that seeing platform become teams to products one to actually to potentially has We're but critical covering control. to and sell market. selling everybody very pipeline interest buying the The in and we to The environment. off is demand repositioned a the or just our CFO, healthy process. in We appreciate say there, It's high. the But environment every we're out We've question the market to measured. right what platform the CEO, make no can and Raimo, C-suite. there could that Thanks, our still across Certainly, our of it. the more we're that really now. play want remains mission customers focus entire sure on in

the We have plenty now. of market right capacity in

the want We portfolio. to have continue make can doing entire grow we share that over that lots to sure hired market AEs we things that the of we've across of the past we're to couple And years.

expansion. see to multi-cloud We continue

You and continue mentioned our our to that to to that. opportunity that customers, We huge products have. think both the the of acquired are we companies a we portfolio, existing have inorganic more in sell

to opportunity a of size we to see the And a growth product on selling expand for execute TAM have strategies. still And and spend of with entire selling our a the for still our very us so big big we us opportunity lot that customers, the time our portfolio. base, our customers

next Bo, Raimo. let's go Thanks, to question.

at now Thank go next Deutsche Bank. Zelnick to you. Brad We

time of kinds my there Great. best pressure a you work of My Thanks activists. an to have for seem do amazing to luck money to paradoxically, so all drive the question the pleasure. But it been all from is opportunity. world Marc. dislocation of investors It's to the profitability, you with including creating do a same And time? Bret, at much question. Marc, for would out some taking of put both lot you. How

my I first, mind want you to to to Yes. and Thank go Raimo, on that probably what's Raimo, think before because it's I every I partner a such of your prayers now. CEO important recovery, right diagnosis, single you and I we're of tell back question, are to the for sorry and hear him thinking and CEO Brad to with go the our Barclays his we're ours, day. full every but an want your And moment and is fantastic thoughts question, for so about is so

you're right. Brad, So

margin. day. in do goals, momentum. prevent is shareholder thought are strong you to here moment We our to to that's one were increase can by single a we're our operating not that's going going results increased goals, And these anything my a every as that of see myself, as And

dilution. doing want also we to extensively. our And realize also we're about we've We important. talked extremely That's why been buyback. that It's reduce stock

$X we, in we going I I during I a we're I over quarter that buy a goal back think an quarter. billion. bought the that stock think, we billion the to think And about extensive amount back considerable set have think, that of that $XX amount bought back

XX this returned shareholders to billion quarter. shares, about million $X.X Yes,

that's as So action. important think an I extremely

through important dilution a is our very to us, in increase margin important our is opportunity. going reducing is us, very an company this massive is transformation. Every increasing a digital So profitability, to but operating

think company, don't some there's opportunities an to those. that well, Amy, or were in to weigh more very than when and smaller from we the hit know, maybe of more a transactions have and these or I be closing more and able there, would customer, XX we I you think a know why begins we're do that the it transactions has incredible that's globally. say out the the from we've perspective, balanced more. both done, the some know you I and all same of ends And company tactical past, transactions I but At acquisition we're all kinds with it's and You time, to

XX-XX Yes, probably over the years.

has we frame He we we the Mike about financial discipline. closely. Amy different that it's and do kind why it of of So largest, I background, the the because to you the different company. Look, calculation. it reasons very as the talked transaction to Microsoft, one know wanted from even all smallest a and recruited Mike a and had

A-team on expense a possible. all. we not in, to we operating somebody she look was recruit lot that want grow best we we spent continue this want area, margin. Mike, operating up, call, the know but And and we're going and forward, we're grow you to areas well at continue would said we this We're going as we've these going we to when who's you going to in to we're you thinking inside team want continue made margin other about that that at I and that goal XX of to also get at came outside to to points. look every But all And we it. to grow so know identified been you that it. these she now the anybody we revenue, that our that, we we as in do think and not Investor as want But specifically know crazy And the doing to do this targets, us everything major Amy's We we who the could of and our I this and think is, do that time changes can it to have you to company, As guide of will go of picked feed strategic continue to at the had numbers to who like part reality important. we our make company, Day, with opportunities. we single see and short-term is

know we lots You that do. of opportunities, lots lots of we levers, that of can things have

example for we very to and us that make and operating best highest the as you numbers do acted industry going XXXX. possible, how to company I margin, others to values everything be to in then see watched this and are also the and also can we closely we you an the best well. XXXX can through think increase And continue

Bret. Thanks,

the next to go let's Bo, question.

Kirk that Evercore at now from take We'll Materne Certainly. ISI.

and just in mentioned bit very hanging harder Brian. best on Thanks you assume Bret elongation pipeline one was or expecting bill others? process on you're perhaps add Maybe just more I us some that to not that getting those it you've term. endeavors. all been that could sales And in I near for than little talk products? levels his my little industries thought kind bit kind seemingly a if macro hit to to seeing? that, anytime the products I'll was industries healthy. the might Yes. wondering, I change of you to that particular for remain of to impacted curious, your talk better and you about if due just you still the in what's Thanks. But next that this be Brian, wishes backdrop are are much. us could is maybe the about a there of

Yes. question. Thanks for the

strength I the think that are hanging for quarter. ones starting a better. was in us there in hospitality with Travel and the

industry bounced energy quite quarter, strong. strong in back very also manufacturing us the and was really quarter Automotive very this was Our was and good. for

a our on relationships bit felt we the quarter. of and and that's see not in little side, other the On right acceleration but tech industry industry now customers an did great we there, that pressure big

industries flat the of of was an relatively flat. other in as Services Financial And example, sort were quarter. the some

there, the of the clouds. better very in that industry will we deals speaking very close and is very retention quarter showing with customers' seeing also seeing base. we done get up higher penetration. able obviously requirements I products, you the say, more important to those as as make well. growth question, seeing the we're I'm language faster And wouldn't have, missed investment one of to products we did other customer our mind so is We're of about to our rates. We're invest though, match seeing And in part And strengths great industry we're which your that sorry us rates, repeating cloud, the it. acceleration I we're good we to think up our if success their in

kind call products any that we I was revenue, the and basis. you'd of but curious on a see just Just bookings out, obviously

impacted to do a of expansion CEOs earlier on quick they one where over action, Commerce see great that's run less automation. customers incremental Sales started and of been on Cloud cut our the Service a during spend commentary Commerce. would marketing a less sales and in a get and users Maybe early we've and a a we back seen pull on that mentioned of expansion about bit on hiring. make the the on the certainly, past service place that's Marc as his We marketing did had sort slowdown pandemic, on hiring and quick think we quarter marketing. as quick fairly to of that has action, be one less downturn, couple maybe in little some up And I users the And users. see a saw paused Yes. Cloud products years we early in

the examples are so of would of seeing times. these a of be And that those a couple some products headwinds of in bit

kind in were Week were of XX%, Commerce commerce but have commerce been interesting, numbers up despite only X%. obviously, Cyber the was blowout page it pandemic, views we there our anecdote around commerce. Cloud, up lapping but interesting orders In There's

right So consumer see a this which only the products browsing bit year, I last and consumer more BXB and than customers' all behaviors but and not now sort and lot was very impact, seeing are we're our obviously more interesting. even for of a a companies doing but little can measured, you company, or they less buying less did thought of people becoming

great. That's

Great. last Thanks, Kirk. Bo, question let's now. take our

Capital. Hindlian-Bowler Certainly. Sarah That last Macquarie question will come at from

have Thank This an you Great. was for question incredible Bret. I best add you, my a in. of Hopeful that and Amy. much. in you really appreciate you so And to squeezing congratulations wishes me I'll you. opportunity front

to one really way briefly where rates, margins. on topic on, mentioned call the touched we revenue I continues great your think that that's to which you a high be retention add

into a the be plays So some that well? retention helpful product higher? strategy to maybe suite as or would Thanks we how Amy. And your bundling could drive you're drill little doing rates maybe bit, of that into what down

hear analyst call. rates, we on really, So really our were Sarah, let voice or to me record for covering start Again, where back attrition you your pleased to I'm by a saying, this to quarter. on it's as see stock and retention have this great lows. Yes,

to and size I Brian, also so customers the doing in to because our for we're the going company it's on actually but about our become if mission-critical. think customers, it Brian. sales there I'm us and that, over team has turn is says so force their an occasion this to and attrition our to much support of expert what

want you do Brian, add on thing? So to

Thank I'll quickly it. Amy, thank the you. Sarah, I appreciate for address it. you, question.

as entire DNA, is the the I company. ours, it own First part of success our and it's of we our heritage, a all, of think across customer value core

teams way more So owns that Everyone it's not success that the with made product the just teams investments the touching financial from in motions the to and go services teams. success market that perspective, customers entire we to success. our frequently running. organization our customer from We've some we're a

perspective, better perspective. and faster from time services great better for our partners also mentioned industry adoption alongside and value customer in there organization results We've well usage. our I driving we're strategic that As are as some customers made better rates investments upfront, customers where the ecosystem from better a to of earlier, cloud seeing a implementations own success

on over the now very tremendous running gentleman Mark and to with leadership doing oriented to our Roth, has work and platform. Jim success speed to run reins our they're joined value organization; services getting who are to great who's success great Wakelin, motions Steele, ensuring of under a some Lori that customer customers, turned organization; And we're new, the our that our running named us

Sarah. the look everyone next few for Thanks, forward you, today, And the thank Great. seeing call weeks. Take to joining and we everyone, care. over

you. Salesforce's to you Third like that Call. thank ladies gentlemen, Quarter Fiscal joining I'd great evening. will you so and a Thank us, much for wish include Results and all Again, all XXXX Goodbye.