CRM - Earnings call transcript Q1 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Salesforce Q1 Fiscal Year Earnings Conference Call. At this time, all participants are in a listen-only mode.

Following management’s prepared remarks, we will host a question-and-answer session and our instructions will be given at that time. [Operator Instructions] As a reminder, this conference call is being recorded for replay purposes.

pleasure the my Mr. over now is to conference hand to It Cummings, Relations. Investor Vice John President, Senior Sir, begin. you may

John Cummings

Thanks so XXXX much, for joining Brian. Good afternoon, for fiscal everyone, our first quarter results call. us conference and thanks

press can found call results, of at IR be release, a on and Our replay filings today's website our www.salesforce.com/investor. SEC

co-CEO; President the and CFO; President call on Benioff, and me Hawkins, Product is Marc Chairman Bret Mark Taylor, and With today co-CEO; Chief Officer. Keith Block, and

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

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

you, that, it hand over Marc. I to With

Marc Benioff

thanks today. hey, I'm minutes. am much, Okay, Kramer on little everyone, thank will was on and a I late working I bit here. sorry the on that John, for being XX you be so call and in

dollars quarter let are cash flow and And team just to these in than our in rose XX% just because congratulate in cash they the share want more entire in operating flow, of up XX% QX, we I just say, XX% revenue all, first year-over-year, nearly delivered that billion $X we for phenomenal. numbers to billion, constant So, in me and to are just currency. happy $X.X up

scale billion had company that's other guiding $XXX of rate. this million and days XX For is to earnings our high and XX% we representing from call. our of at year enterprise end fiscal ago up software projected growing growth QX year-over-year, at No we're the XXXX, size range, when the $XX.XX

sixth years last transformations with a It's many and really CEOs which were the it Tracker over was and more probably know who these tell YXK, and I'm Worldwide we ends the with I'll are of ranked their And buying is XX in and year digital so month, begins for ever, every for in customer. them is customers transformation to CRM digital our IDC row, the through Salesforce mind. it's to going especially than that all tremendous exciting Just the all and CIOs Software when important these number one as ago. this center front important world, them almost to is as you

a remains the think just industry. our entire huge digital I opportunity for transformation growth

MuleSoft Salesforce in combined, XX vendors And in amazing. number XXXX, vendors more one other other and leading CRM We're it's not top gained only in we're the one combined, top so than we're sales, areas. number share market we incredible. platform, service, We're a that, with this in many that's in number one million commerce to our also community model-driven also X application have marketing developers. We're and amazing gain share, integration continue and driven by leader it's platforms of in one and number

a Forbes amazing companies for advantage a innovative innovation, years most taking row. Salesforce we're through relentless have the of has We of focus is that us one ahead of which opportunity on as why X and in ranked

so this sales, intelligent well our commerce, by and service, force. XXX-degree our Customer and but our the unified just now XXX, tremendous the Customer has Customer really We and a that, marketing, and we'll vision what I'll driving customers BXC articulated every across every BXB powerful touch levels highest giving vision future, tell to Federal It point, the it's capability. communities, have product even really of customers these in tremendous call their we driving with talk that a XXX this have is government, doesn't at are, more, a about that organization industry you, customers, XXX, view for this been company matter opportunity you needs

a technical will applications. And build its is forward. custom most Platform growth engine capabilities which Services Platform, XXX infused apps core AI-powered everybody, At that continue new of Voice Einstein with app, we so to and major our and important our to Customer now thing to capabilities we're enable for going QX, announced build companies just is our way that regardless Einstein Einstein Einstein be easy skill, critical blockchain. our, it modern, Vision to Salesforce the entire and powerful customers, doing our a AI their Salesforce core, this intelligent for across product is has been line, with exact also for available just every which technology these we've few for made same because as another In Salesforce clicks, customers and

Blockchain. service platform, simple to our of industry. in can customers demonstrating blockchain other or in use the and very extend now these AI, how our at of Every customer look incredible built just CRM have our customers things just built large our they conference for all the It state-of-the-art capability applications tell you, as app. can is And customers Salesforce many blockchain into for the going deeply enabling world's on it's natively supply just our and and deeply just built simply apps. our I'll for developer not showing Minneapolis, it's solution, what into ability just easily with with you in easily do sold-out awesome so our they not of so not It's platform Last it San chain, customers blockchain and we in there's one declarative TrailheaDX, blockchain, Francisco, It's our I pretty platform. app a to every Friday, first It's on are in introduced week, mean platform mobile, drag-and-drop apps. in see this it's when many to our you at of it can every to incredible capabilities. applications, that Salesforce So, their it's build breakthrough. create

just is developing is ecosystem than than we're and platform that economy online platform more to and huge create which that one everyone. around reskilling Salesforce, $XXX empowers jobs by is going online in billion X XXXX, excited about our a learning and million so more why our Also, GDP in is Trailhead, our that

now can actually and Now people create our became like transformed just their Trailhead. of branded how changing X.X quarter, themselves customers so and their these customers, more we any of their they and generally the careers own what stories their in many learners and than we Trailhead, have you And of sure have our on lives using inspiring met and and incredible I'm their done myTrailhead new too. all product employees, partners reskill available service have million

next do for Salesforce two So jobs years. of America's Indianapolis, them Ivanka is and get more give excited it the and are House earn that make were Workers, the driver Day we they where at in White which in Trump badges and we with a top Indiana, and Americans plan these million successful we to ecosystem the our necessary Pledge X and to development, everything workforce skills why our ago, than in will our over credentials so to need be X in headquarters signed weeks we huge Trailblazer First-Ever

unifying to work our world. are now but XXXX. as $XX going hear now, continue target in non-profit in .org education our organically always world our vision as business, again of we're to the opportunity And of way four already of with to our our us, has of well Finally, same from an at salesforce.org years, to time been and $XX tremendous our Keith, revenue better experience in and I'm next does part the even accelerate are part and that's billion reunified to to state excited a billion their our Salesforce, and achieving providing sitting buildings for today the empowering all of customers, at for this the as well double non-profit company officially change world. incredible and that you're revenue why fulfill the the fiscal year they fully them improve Salesforce, it's they're And our on path extremely already tightly with structure here – positioned to is missions philanthropy employees our

to And now, Keith. over

Keith Block

Thanks, Marc. Thanks, everybody, for joining us the call in today.

been across of our the better for we are positioned We than delivered future our Marc and seeing the As now. have great clouds growth revenue quarter and never in all all of industries. right we said, strong we're momentum

awesome, first revenue the for In becoming exceeded is billion time our cloud. That is sales ever, in right? $X Cloud Service the That fact, – second cloud quarter, admittedly. pretty for

Mark Hawkins

congratulations. they're time, these of that in Cloud, service billion all their know companies Service the $X not about you lot for we billion even $X.XX VIM, clouds, other quarters read cloud doing a

Keith Block

No. amazing. It's pretty

run it billion, second is revenue Marc cloud, as pretty our rate annual So becoming of an to $X which incredible. said, is surpass

Marc Benioff

It is pretty awesome.

Keith Block

by year MuleSoft, capping also had anniversary of record Salesforce. celebrating an way, And first off in QX, a as outstanding here the part its

as prepared, XXXX. also billion goal on Marc XXXX deliver to of $XX said well our for are FY year we revenue billion fiscal and to Now, our $XX goal in

that. and about take we're competition. outpace So we share continue to excited Quarter-after-quarter, all the

think I that's clear. pretty

that's And both our for proud in and continue XXX-degree meeting world, of XX% in Marc is those in demand been CEOs of view market the we why XX% segment. providing in every that EMEA of and Salesforce new APAC; this, that customers Americas; transforming And across world in the you industry, the currency, to, around XX% and we're year-over-year solutions very results. theme customers the and importance existing common very, constant from than something a can see better hearing that's experience revenue every massive As to growth the have customer with it's we of see anybody, customer. the results, alluded our and the their does value

quarter, their who importance example customer the great understand with of who's done important. strategic transformation customer Next deliver Best automated a a and is Dell, a and really customer, of more a intelligent fantastic Dell customer Einstein and in Bots in experiences customer a they're the transformation very, with they us long-time is predictions expanded to Now very experience. In Action, job around partner. service the

In agencies. marketing QX, leading in million and They're world and Financial a Tokio service including around some the agents they on Services is also Salesforce Japan's providers. one And with very, and we've of sales the relationships XX,XXX very Holdings, deploying standardizing of Cloud built companies over were which also cool. largest insurance of to Marine strengthened

happening. also We is also company came with week. this company. globally. last Australia. million over expanded We ongoing a Choice in utility This relationship a Hera unions Italy, credit citizens. Again, an see largest of And what's phenomenon Credit excited can we with that very, back Italian very the an People's X.X new Union, from Group, with formed I one as serving is just

We of our continue the the and streamline federal its to loan. with platform of Department deepen student with as millions Education recently relationship modernize experience of citizens Salesforce The Federal Government. U.S. to selected

Southwest knowledge and Airlines, centralized their has creating awards experience employee to an communities. using build entirely new for a certified which customer won service Salesforce with world-class is on

services Southwest more mobile is their of for delivery chat employees. new HR than service and capabilities with XX,XXX transforming sales

importance all not of It's were adopters partners a our in our customer's QX, the some of in also know business our and they our to well. but only about as transformation play continue and role XX% our partners critical leading they partner new ecosystem. in We were involved of

talent continuous leveraging that of in, it's top leadership were value Accenture for intelligence, these about business Accenture important, culture myTrailhead, like re-skilling think the their is selected on the artificial learning topics all and content their employees and about bringing and development. providers other provide this table. talent and and networking very to Again, custom for business still clients

conversation. CEO CEO beyond to We're recently alluded and the discussing reskilling great for also was It the the board up its win Australia's for in workforce the as top strong with strategic common their the mind in States, single quarter. every world. Telstra the Marc every and seeing momentum is myTrailhead I another importance comes theme of United of with

continue value we intelligence financial This for for Financial the Einstein quarter, In launched vertical Cloud CIBC. platform Our success and Analytics QX, we wins to our drive clients solutions the Services first in for customers. is banking. incredible had and wealth with services. complete In

outcomes. again, to factor's care complete enabling health providers new patient's capabilities that improved to released a also health, contribute important, deliver provide a We new to very, very better and cloud

chose Cerner, continue health information QX, In replace care technologies in a provider of consumers their and Salesforce to their transforming EHR they leading current providers. engage CRM how with their to and

– Enterprise absolutely we're been was for Magic the with company and Gartner recent us In API thrilled year Platform to it's MuleSoft April, acquired that named a I only we leader a a as for as be the company as and recognized Quadrant Gartner's Life these mentioned, in since Finally, Cycle the the makes and Quadrant the Integration combined most Service Full both Management. MuleSoft leader only in success. Magic

So customers, employees, our to results this our thank close, I partners, want our to our strong quarter.

that, I'll Mark Hawkins. the over with to And turn call

Mark Hawkins

And our delivering pleased margin record operating cash strong Keith, with year-over-year Keith. thanks, Well, clouds of quarter our of flow. we're as Marc heard geographies, results, quarter across and from revenue first a operating growth each and improvement and you've

take for me details through you some QX. Let of the

and XX% XX% in grew revenue constant quarter dollars First in currency.

full points in a As growth you QX, basis we $XX two million represented year-over-year. experienced which headwinds on or of dollar can see, FX

subscription dollars XX%; U.S. billion and Service which including $XXX growth Marketing XX%. grew deliver $X Sales is million license. treated Cloud MuleSoft, as quarter, revenue this annual grew approximately and term XX% Cloud and for and industry-leading strong commerce as rate. support support Other the year-over-year. XX% grew revenue portfolio of Our in run continue subscription Platform and XX%, U.S. in noted, eclipsed grew product in to dollars;

mind, on well more, bit into MuleSoft the each in Driving for headwind a continue execute affected with FX similar $XXX the revenue to basis. clouds in proportional the total quarter. revenue million Keep of contributing total first for MuleSoft we a

our to color revenue as discrete While forward this MuleSoft MuleSoft, we final additional appropriate. is going of reporting intend for provide on quarter

in healthy continues attrition remained remain dollar renewal to and rate XX%. QX below Our

by GAAP first the GAAP of $X.XX investments in in and our fact, QX year-over-year $X.XX. adjustments attrition modestly year-over-year improvement continued non-GAAP strategic EPS similar saw quarter Required to EPS our rate we non-GAAP to both the In $X.XX. last quarter first in approximately that the mark-to-market QX improve was benefited attrition quarter was XXXX. and in

the I of first XX% the flow quarter, to was which Turning our operating strong with cash pleased up $X.XX billion, flow. drove very in collections cash cash year-over-year.

in In cash did fact, generated year we more our operating in entire we fiscal QX, than flow XXXX.

million, as cash CapEx of as up defined QX XX% for year. flow $X.XX to less CapEx $XXX cash billion, was free operating the of quarter over flow, leading last

revenues Our remaining the performance under over $XX.X approximately obligation future quarter contracts up ended billion, representing last all XX% first the at year.

revenue more XX% unbilled and business expected year-over-year. recognized constant-currency months considering Current that is an $XX.X billed both up cRPO, in XX RPO $XXX FX approximately to or is million. On balance be which was is was and basis, a as headwind up the next than after of billion, cRPO XX% year-over-year

see make While cRPO, to we not these sales see you every did as can organization to QX, on we material changes our a our in as results. impact do we

XXXX the let to Salesforce.org me to FX turn -- on of related the and combination Before guidance, touch and QX environment impact in FY I the turn guidance.

First, regarding FX.

decreased pound, X% substantial As decline rates seeing by for The evident euro a quarter same British period. we're call. over example, our Great fiscal fourth our and results, our XXXX declined in call QX X% our approximately approximately earnings the since FX is in our since

Second, regarding Salesforce.org.

our settlement announced $XXX we charge in with with incur million the And million GAAP EPS recognized non-cash to guide expect previously to of QX approximately closing, which With approximately in second $XX Salesforce.org to million quarter accounting related FY Salesforce.org, million our non-GAAP will discussed, a we approximately of to million continue XXXX agreement reseller to by approximately $XXX one-time $XXX QX. to to the as $XX in $X.XX. impacts of revenue this in revenue recently contribute

more our we'll the combination in targets to to provide Analyst revenue long-term our fall. Day be during detail Salesforce.org the annual and of We expect additive

XXXX guidance. and FY QX to turning Now

the but associated We and pressure to combination our headwinds relatively to pleased margin this revenue with for are $XX.X expenses along transaction in and north well. in points of basis we're XX headwind the context dollar XXXX delivering were increase given for experiencing to And still million headwinds expecting the flat to euro, able these of FX context, XX% an we the year-over-year. year. $XX.XX GDP are billion and to $XXX with year-over-year strengthening growth revenue, billion of absorb with operating pleased non-GAAP guidance XX% to now have be FY of the to to margins to that of Salesforce.org, only able we be also of improving as in also integration maintain not operating And plan finish

to $X.XX diluted a $X.XX. $X.XX FY and EPS contribution guidance by EPS result, our XXXX-XX. GAAP ASU diluted our As as non-GAAP no for to we $X.XX to required are to mark-to-market as And EPS assumes a future reminder, accounting raising our XXXX

our maintain we cash flow, XX%. XXXX to guidance flow cash XX% FY operating For of operating

expect of to For the $X.XX in loss $X.XX billion; share of we non-GAAP earnings $X.XX; billion $X.XX. diluted revenues per per $X.XX range to and diluted $X.XX share QX, of to GAAP

We to the expect in XX% second approximately are also cRPO XX% year-over-year quarter.

of To quarter in organic maintain $XX employees, close, results to billion track of our achieve and FY goals billion XXXX on customers, long-term strong be partners FY shareholders another and to target like and and we our had we their revenue for for I'd profitability to thank support. continued XXXX. $XX

like that, call the With for open I'd up to questions.

Operator

question line [Operator our Thank come from Instructions] the of Heather with sir. Goldman first you, Sachs. And Bellini will

now Your open. line is

Heather Bellini

able we could how the some MuleSoft. reach And new had within for success Thank with it's could existing into a helping the how much might I brought examples bit question. you spend was any Marc, you your customers morning. taking share And expand to fold? time I a about if more be it's Salesforce us your of customers. you share so wondering just little Good couple. you if on

had Mark quick just follow-up Hawkins. a I then And for

FX. FX thank with expecting in were could expecting cRPO the -- So you an you mentioned for where you that's getting because in the headwind -- we're the us you Were you. well? the you -- from things quarter headwind that cRPO quarter Just as share

Marc Benioff

thanks. Well,

And a Let the regards what our of hard we're we this you to we've able in company, and doing we And is to over idea our be it our for really to opportunity, call take me entire lot MuleSoft. want pivoted seen customers of because this just pivot I'll now, about with company briefly. right check is Customer do on excited that momentum tell customers. year something they're XXX. It's us their that that last so pretty everything a just into to that and tremendous

mentioned, I to sales, bring as journeys, customers been three and their the trying as marketing, a we're been States, Customer who I've has systems, deliver on or their a that their by well. are happened interesting learning like or in it commerce of are wrap their road. I've then it customer building, with because in years, the all and well. the you and programmatic bow is employee their whether a it it's on using I really been they're to this. XXX. capability, put and us meet over systems in It's last this do two industry, throughout secure, together, years quarter, communities, reskilling and All together, APIs And Japan, I've all I've make the on that and been they're as to what through so the Keith the the and it the becoming technologies it to service, Europe, customers. ones only experience kind United and nonstop all know basically for it call phone, amazing their just as put all important all that custom it all world, integrate it's blockchain, those engagement applications that And the analytics, apps vision AI, So developers building incredible voice, these with

and has us MuleSoft the into for “wow,” customers ability say – when have ability us And everything back our that this hard going all yet do is vision. what given go are basically accelerated execute we're because MuleSoft is for bring us, to into is customers XXX. to it's what these it it we and really trying And in to come this a the you and tidbit our to and come and has

to all together to to the we're application is our that ability giving connect platform not of be all We're your this going going not into systems a building you one. silo, be about we're that

stories into but on, just customer And so, go vision. that little could touch so to that deeper you many Bret, around of kind exciting a I that do want

Bret Taylor

mean, really just our Yes. a We had week, San actually I highlighted. time. Conference in it's TrailheaDX last Francisco was great Developer MuleSoft and

One and on was vision stories keynote that about. talking Marc of that really the that was capture Customer ASICs, XXX they of the stage,

talking data a app so mobile it said, [indiscernible] trapped. were about that and system, legacy wasn't customer In technology, was systems, on-premise Marc their the all that order we management about our building one-to-one and was is systems, XXX, ASICs ASICs experience. has customer story, e-commerce just every experience, about their and the as the It just that personalized

smart And create is you they are watches TrailheaDX if trapped floor mind. is smart legacy why customer was vision and such to who the talk MuleSoft integrate smart TVs trying are trying to has you to are thermostats. that to systems legacy week, barrier everyone's accelerator and for on been the last smart transformations, in the digital and these experiences if walked which MuleSoft those in and Their an around technologically, systems that do with speakers CEOs next-generation data

the the think of our and thinking about MuleSoft companies and really We launched APIs are this you their becoming of enables each companies lingua around can and the the really other, ecosystems about communicate integration orientation the which technologies Community thinking Community of create with product transforms I Manager, companies data convergence how see APIs. called way and API franca our Cloud strategically. MuleSoft are

Heather Bellini

because talking maybe is. about social with and a we’re comes but of they happened about thing the make at vision that what Customer last I Bret, week was a implementation that, are decision is building talking this to they're story a when lunch, XXX, much we're everything you that of another about their where The customer across concerned a just really just going and said

call Maybe their marketing decision sales unified bring their center their service decision to to to together. have they're their here, customer a about want customer view. or they're maybe They over They be need making making all around apps. systems the it a force able or

a easy companies for or So, challenge them? going is daunting that how that are these for make you to

Keith Block

is. it Yes,

e-commerce were an just We example. about take as talking ASICs. Let's

If a it's your you with about you week, a are modern to and retailer, customers that's be to where making just integrate day and Pinterest to able you are, evolving have not show anymore, by month Instagram, have by storefront by day, week month.

The digital as you, think technology isn't integration Chief And of just that And think is from MuleSoft profitable. more solution, clock the that the a team tell CEOs MuleSoft Officers deploying and a of will what company fundamentally is increases that increases. is, it's sure strategic making I hear their I pace transformation. the a focus speed Digital I most

Heather Bellini

on Okay. and And MuleSoft you some little a been unfortunately, color fill Keith bit this just important left to give the just room, and how Mark, touch do us company? in want

Mark Hawkins

just Platform that. has and great It's have been great Customer entire MuleSoft When offering for this We're we it, happy more customer for super sure. Success to for mean, Well, that's sure. helping talk great about our how them. I to is a with been a enable going response. It's customers us who us.

positive more So that is marketing.

$XXX hunt a this FX expected million I we're that like we for clearly on FX management is to incremental have touch This would headwind I thing thing is at moments. only $XXX a out, we the headwind. anything our cRPO incur a team, only the about And the for as level lot for we revenue on sure. might very looking would today had And talk second call that and question RPO, in to million been regarding the did asked significantly particular. The

This guide What of happening. this is this that's pleased deliver our or I'm XX% still different we're able XXXXX growth high-end number fiscal clearly year. to year something and with absorb is

Heather Bellini

Like much this bit environment we in a for really script have how you your exchange, gone exchange little heavy making foreign it through exchange You for headwind year? us. foreign for have but foreign the touched on do

Keith Block

in For $XX example, revenue in quarter, the a took example. for headwind first we million alone,

at the place thus we -- We have that. with and think can good million news what this for we've a we're that headwind $XXX is within And and a looking year deliver that got covered I little that as we plan deliver far.

Marc Benioff

foreign is understand. it's something year deliver you're the appreciate still but This our thing these really and up you're things model, about that lot going exchange. amazing that is predictive really our I a investors with business us talk And to all we or customers think that I our what a picking it's for XX,XXX lot helps

Keith Block

which predict foreign what and can't You as I that to would hard well, exchange well…. that’s very was is – Marc suggesting second that

Marc Benioff

technically keeping agreement, Backing together.

Keith Block

not am saying I don’t not working. know – something is enough. I

Heather Bellini

Okay.

Operator

question next Thank the our come Karl And Bank. you. will of from Deutsche line Keirstead with

Your line is now open.

Karl Keirstead

you the environment for comment. whether Keith down much you're full -- I year, Thanks macro wanted assuming and and there's I set for there, think spending call this it's Salesforce? and more bit very uncertainty realizes sat a the but any Thank guide ask to Hawkins for whether as Mark you. ask to broader little everybody Marc Benioff, I that you, XQ on to any wanted out change

Marc Benioff

you a -- that's customers over I the of in and my field been I've just I'm hundreds good I to to mean, think of economist. and customers last knows that. question. are. give world just talked days all face-to-face. really I'll you I Everyone the out I've not the like I'm And mean hundreds XX call talking on an the all

very this XXXX still that Maybe we're would not this economy. is a XXXX economy. say -- economy, in I And is a strong but it's

we buy-in still these there's a CEOs. because crazy tax acceleration that have year, strong but last radical of think by course, I of cuts, all the emotion

was think I economy what's I And they it they not see in all going do anxiety as think I impact could have them, But that -- the even a right last this week, in but happy that customer on on some are with with will as trade situation. now. that I early I say coming around don't potentially how very with

really free always affect things that am, in China, see good that customers' to all company how about I'm really Are this trade that think hits obsessed so as talk the that and CEO saying eyes, us. impressed business But trade really this, do me from technologies. Now, is revenue like to we to is talk is We're just we the every quite not they I situation talking investing? and growth mostly they kind that. we're these of And into to -- and have about new I And look don't again, thing C-suite don't buying? opportunities actually they when the Keith with are a we're been I'm going ourselves, let I'll these now transformation. where which with tremendous I digital of

sales didn't say, all maybe AI, they understand understand which of is now, subtleties computer, And here understand through maybe to blockchain and didn't large that to healthcare the of that demonstration very show I the artificial your ago, company very maybe in was, understand I of at right some to about going intelligence XX we're a what two the something this table back mobility was change we the of talking amazing. to opportunity, us they have and they guess at months. CEO talking didn't Maybe weeks would the last, the but them, sitting XX

we had where supply we we've in transparency use whole then cool. how which the so shop And going we amazing. didn’t was into also that intelligence now of was Customer a secure. see of allow on chain you analysis the to demonstrated the XXX. And have it mobile phones, we blockchain bam, direct artificial of what course, integrated retail then And before. was And a And was the camera

not Information much that become shocked. or level, got was following very They're executive. think into I at kind level rolling CEO as CEOs the we along And Chief themselves, Digital of we're have Officer that that Chief now Officers of and

middle can. And deeply to from their that, executives because who you cases, many themselves. those really have chief obviously the or of coming in to And think not try I managers back, are C-suite but involved, if companies, visions lay the they you ability transform from are

way. the talk about person You're by to the right blockchain

Keith Block

None from customer here. and was world. being we're services but and loyalty, EMEA talking importance what's that economists, and digital France, the an are with about customer technology. think the points digital I experience I providing said, and in position Italy and U.K., going of all us enviable anybody transformation service transformation many on in and financial with the return have many, we the CEOs company our conference that levels we the of that providing customer the higher from they're of wish I institutions of for and with experience do Mark around So, could to

reinventing here, years years at the before two companies companies about also we companies and CEOs he's market. I ago that how their directly optimize consumer retail things patient are CPG execution there's to And these themselves so the in was think or a U.K. closer packaged here. they how companies And gets market. these begun to couldn't is that their can left for the four possibilities talking few experience and largest the years about are companies the United and ago, a was company with France the ago, I retail they a world, with world, with drugs many in where have challenged in end the and talking three with that obviously, States, of consumer retail own CPG the largest I about and with sitting and least goods for CEO relationship bringing they're the direct the

Chief Digital a Grail. Grail this company for and Chief this the Holy the become coming this I interview I the this while, been Marc that we're it. Because quite the can the have Officer them. really and is are is And in nailed of provide we mean only Salesforce. Marc customer. a a Holy and capability for company for [Indiscernible] the why Information great keep view has to CEO XXX-degree position This and Officer, customers, that's in

Karl Keirstead

there really When Where have you are transfer and seeing technology is look able still at Or you to this they transformation? Are issue? to they? point effects see it? customer's this full at ability this deploy of Are that technology technology.

Marc Benioff

many Well, are companies, in early many, think there's very I days.

for you the engaged but tell in transformation, in have than them of customers of if consulting XX% they'll the talk their fact, to you largest marketplace. room there's been of digital one strategic lot a our partners, less In

be to integration MuleSoft, that importance and Going about the transformation. CEO back the would've data And a what the to the thinking is their to thought and first brings who would table. of value being MuleSoft question about that strategic beauty of the

companies like modern because So, through helping modern Trailhead skills. and the one with this My around has Trailhead the their modern scale Trailhead My transformation them of a really And transformation what and Trailhead we to up is technology and again and worker here customers. have have these beauties that's opportunity an product the digital of provide

[Indiscernible]. So the satisfy an innovation of are we these coming at right really to the amazing time customers needs out with

Karl Keirstead

Great. Thank you.

Operator

And. will Company. Derrick from next And come with question you. Wood Cowen the line Thank of and our

Your is line now open.

Derrick Wood

highest Keith. years. were and basis. on quarter up Great. strong Headcount I adds almost QX, guess in XX% year-over-year two Thanks. in for quite a the the for It's

area? So, how there are whether guess, you're you accelerating continue geography to since any or just at and investments and function, the on product these getting you're highlight employees, large onboarding tracking threshold you and XX,XXX areas follow-up, manage days? ensure you certain And as almost so how would maybe attrition I a is touch can you

Marc Benioff

whether see customers product, to obviously headcount our to you industry our it's We've partners with a United call. think so to strategy, take commitment we as outside Look, we've certainly share. made got strong you strategy a globally, a very verticalized and So, thanks our continue for invested the very, we've that continue our significantly I well. and the States as our but international know so

certainly is growth it's of our MuleSoft, core for course, a area us, cloud.

us you to we the of end in these called And it our get ground in technology running this opportunities get marketplace around have is the And have on-boarding all But there's that rotating the think lot we for a we that advantages all us a of about than make new traditional say upskilled for would using Trailhead. at make of people, the customers. when success as these that our and that people system. amazing employees learning to through day, the these investments. one we investments faster the all hitting driving bring we So, Trailhead. -- of allows And we lot making we're sure

continue the Brian internationally to customer course, of to our invest continue end continue success invest an in is transformation key customer at That in So, been I customer the about. and the internationally what success success very we which our to and it's we'll our think to in international will States. under geographies, amazing all United day, invest very, leverage we'll because markets, in of organization in our is We'll important Mill to the continue Trailhead us. has

you your fact, ahead and go our I of that? try to life. and all website see Trailhead go In can how would and How's encourage to it change

Operator

our And question the come line Kirk of you. Thank next will with Evercore Materne ISI. from

now Your is line open.

Kirk Materne

even way force very those ground a the Thanks go to where reach perspective, from the relates that, wanted Accenture. especially had as go-to-market be comments you potential guys not Keith, Europe faster on multiplier you your become the to have on for like to -- on a but actually you to the seems comment especially demand. maybe places me historically? Can much. I Asia in It the that you in accelerate have not the myTrailhead, follow-up to demand where a might for markets around it you and myTrailhead capture people could

just love thoughts on would that. your of kind Thanks. So

Marc Benioff

people? is going this think through, transformation. let States, about broader top it's amazing going think a digital mind transformation responsible the around why whether do I'm these it do the every digital a answer thinking hundreds in this that how are of of comment in their workforce their to around quite That's they Yeah, as frankly, Bret and workers their whether has ask about care and as prospective. you if act and technology, me about Mark myTrailhead How Look, so And it's world, internationally, about transformation. their the to think CEOs, CEO from of and tens reskill because is perspective something is that this from it, do digital reskilling. charge they pivot you that I of besides about CEOs on they development then powerful. and When how and were they United they thousands or they're social CEOs people, absorb these thousands, responsibly go

how world. this on and have and example to the prepare an I see with for of the technology, in over mentioned And world how reskill but opening Marc workforce. scale their we companies about had world. with and the do same all programs comments concerned how is modern have modern not they solution, we special with And modern also about the And excellent over talk workforce. up that's Telstra meeting where they excellent people CEOs they with were again the team and I can I reskilling the conversations world. wanted this this the an the myTrailhead reports his CEO what just in they their the all them executive and everywhere our to to

force so perspective? product when a on is levels comment from do very to It about so excited you that. skills you think multiplier. about is and myTrailhead important a want So modern many Bret, more very, we're

Bret Taylor

Yeah, I'll about Keith bring I because came talking is really out up conference this think, TrailheaDX at strong that is event.

we in Women Salesforce them event Mahoney, One which her the RAD get and woman vision she Salesforce of condition become train named into just a ecosystem. was highlighted a this in certain women on Angela weeks the to to XX the that it’s experts women runs technology called

we ecosystem. to XXX think people done to into it, and trying who the with this, is help to bring what's And I This going people get just about but spread into development of the to these community end of about Trailhead. empower this organizations events content our technology big need still problem is are at all cities, want conference, us, incredible independent by workforce we on entirely opportunities something our our word ecosystem, that box they opportunity put put to technology is, at the and a the what did the we of this of in wasn't because and

ablative the spreading there's our community most think the platform. question, one in word our opportunity is comes so much Trailhead view, side. her is on on differentiators the the from the behalf mentioned our really It Bellini so of all we exactly which because significant of completely That's other is

the people that helping is our society of native result us helping are with which think more lot technology to opportunity case Our teach a world. members our about is community other the economic for I also is of of It incredible from findings technologies. helping benefit

Operator

And next with come will Roderick you. Thank our Stifel. question Tom from

Your line open. now is

Tom Roderick

my for questions. Thanks guys, taking good afternoon. Hi

the what changing you. around to customer? at and So you've is know of is Thank I been the love but is to general success base just to environment, portfolio, the install with, the of probably Keith, about lot question you're what and handling getting not how just I'd what you're a how that renewals beyond good and happening you do this related philosophy some role market, And questions broader renewals. hear is think as as just you reported to approach go a strategies you customer quarter strategy also the of this with and doing for that all? respect but

Marc Benioff

question. from the important the think one business renewal, that's success why you values. I Look, is our So of of customer most model, importance know our thank you for

the XX,XXX employees customer We a goes a having success beyond have believe on day, up focused organization, thing. entire amongst team customer success, focused the cultural the customer to we I wake on success success. it that every is but admit

satisfaction. are small, unprecedented, it's for is our excellent. company which very, scale. an is attrition So renewals, size with obviously a our very and indication particularly customer our I of That mean and

a the just it's loose doubled they way, benefited they again, companies forget and on a companies And experience And is we customer about companies a of company all that focus our our that's customer. what's about focus customer. This interesting on it touch that of day second really customers. experience focused But this it's have lose the because going on one, We're part sure the lot Now at relates we're is a renewals. why it the is And customer part dedicating Salesforce down along Gartner mistake made our that that us consumer. their as large if in none. driving ourselves the they way. that down size, become seamless whereas the we Salesforce to incredibly since we’ve recognized single successful And have customer is have every renewed recognition. are point to that what's an making doubled who providing transformation. to as is to And the on of experience, They have. company culture, that our strong of know not and other along an And recently strategic -- giving it to marketplace. we're, we're incredible experience, going companies

Operator

Thank you. Alex Zukin come next Jaffray. And our with question will from Piper

open. Your line now is

Alex Zukin

Thanks role doing some this maybe didn't from current kind Hi, Can on what touch taking a guys. fact reorganization this what year you really and Marc, are you for on my Two question. reorgs that you the Salesforce of impact ones. mentioned quarter. RPO or for any being quick Maybe the first sales maybe perspective kind in go-to-market market just any that's strategic organic as last talent then from Trailhead different talent and expanding the inorganic the or differentiators, your around continuous given thoughts have little to year? of you given team mention strategic important And matter? from around

Keith Block

I this Alex, Keith. the don't Hi, is Why question. take

year, at the we fiscal of beginning the some So adjustments. made look,

the about these and market to are about about they our and with demand scale. opportunity think and of XXXX the Any excited these as customers, know that our is important And decisions at we strategic we the we where that about we're has of adjustments. You the success. it that we highest endgame that's customer do getting you fueling of that which take marketplace very they plan going we why the long-term adjustments we our the here, adjustments. in and are growth are in know, right? about in to seeing When level driving we we and close periodically essential, size these long-term made, the are been are exceptional, we're optimistic have where growth And do we are make really FY support that advantage that

where So strongly we we about are. feel

Operator

question our you. ahead. -- go Thank next And

Marc Benioff

was has touch think is this wanted ours, experience since really to need to part should probably those just enjoyed have quarter is of become great the employee just a I Customer he and long-term Service Bret that of little service which the with all Southwest really customer part experience. a Airlines, employees our this have critical customer actually think on Cloud on using And I our well. is of a working information deliver XXX experience, to and of a good I to and inside too touch that they them. think this I customer bit access probably as we've been amazing of example customers,

device. experience. employee don't desk employees interception use like that's anything and benefits, Service a in between their something they that they is mobile we're manage think into that. Southwest now, experience really HR help Cloud in product use check a our and they experience But This is way rotation for and and really customers. communities and to And the and to via centralized very also enhancing going the employees XX,XXX or I any time this want turning chat employee customer use questions to to regards HRMS and much

Salesforce. here help could be desks, it it's one be on employee the HR Bret, of and XXX? getting the that experience our all collaboration for reasons employee's at the integration we've continues your you're the been And information the our and do handle which to vision be success employee can productivity acquired be and touchdown enhance experience that is Quip with system you areas doing there's up Quip customers, employee portal in many it this productivity just employee in And tremendous to product has And about a collaboration. we Customer things to all the in want for where key provided this of us. provided our into It the is customer can

Bret Taylor

provide my the it's CEOs hear, touching I in the transformation, technology, XXX. enablement. that again, How time And this through retail community human and your Customer and beings the employees that I do the is help digital about airline transformation important industry customers time Yes. or or you're the change. through just of employees around that really for words not about this most Whether empowering the from really the going and you're industry is customer hotel the the technology industry, thing it's

employee why things Salesforce learning Quip for of that's not which that and to enablement have we platform. you why productivity and So this enabled and capability collaboration for which and into about. They products. think Keith strategic That's so of like technology something every single transformation. talked important Marc our have focus of speaks we did one just that our And on own platform the embedding your it's myTrailhead, really trailblazing is

Keith Block

financial is to and I it the do we the were focused or that What one years one do when ago where but your of Bret, think ourselves, course, just the these we on and Customer positioning things. key customers fees, with years you of Yes. morphed, this will the love it and things, add has talking understand, fees, really do our to that things has XX We’ll need we're very what going doing customer I doing our -- we're We're years We're I'd take not C-suite just changed, only that evolved. the specifically we're the HR other when we of one of a on in we never When all after you. not for the have we're always word even as been say customer. things XXX, word that's it is has just that specifically company one ago. look I this different, XX that we I've at do not to is company. got X this talking here to approach and

transformation you So and how see intersection employee see going? you do where customer between that that and

Marc Benioff

with the now I a thinking someone, service be agent is be means I even agent, gate might on with doesn't through your data enabling talking employees the what it the me, customer information. XXX that think serving your to pharmacist, it and really everyone with stakeholder from to in When doctor, Customer is about you start we helping customerswhether a provide why XXX a main a those surrounding Mark, engages a customer stakeholder. to make the XXX It customers up about or phone really am right constituency be might might be it the which think makes Customer it you might your that sure all for it’s this providing that the we're Trailhead, employee the and a MuleSoft it transformation become deter your us. is to every enabling that Quip key it's unlock Customer presenting customer. with digital But word

Mark Hawkins

I'd that that been do Amy to Amy, which two has -- the XXX, thought and one a given going so players and I customers is how privacy a really on key team our or see really has quarter privacy last sure these data our in say evolving making all Well take light security because didn't be on. and regards you remiss [indiscernible] shift of that is that you here, what I if major when our over Customer the privacy on have of us the

the through we that? GDPR certainly are with going I shift, going think where worldwide,

Amy Weaver

as GDPR, Thanks, first Sure. birthday. Mark. celebrated its you mentioned, just

happy through that are year to the we and I'm So first going have on.

passed comprehensive think strong CCPA and our that's a an been a regardless federal the state advocating why protection really advocate federal as States for the step At the you that's step, with privacy law. is know, very they're first which in of and IDC for all important California, the big in, privacy next the looking code, but United we've I Americans law.

Marc Benioff

privacy … state-by-state speak be the this So laws nationally which national like California is would first

Amy Weaver

Yes.

Marc Benioff

you domino are a federal and national saying really law, like to up government we have that want effect, now? the deliver on privacy what is … step

Amy Weaver

work have and That than U.S. the to law systems real currently. all from which And personal know as privacy accountable something about they their in be we law need for what in are Europe to well was data they with privacy need to GDPR. to we also That's companies for frankly companies We a companies expect benefits of what their actions. their do one as for they work all of went be more control over transparent Europe. the that the held practices of patch of really one required of wherever individuals can

Marc Benioff

for Customer Thank just think that's anything don't would an as States think than in you Europe. accelerate I I Well, vision. the awesome having United that. vision our XXX more that

Operator

of Tillman will with question the line next Terry from our SunTrust come Bank. And you. Thank

now open. is line Your

Terry Tillman

fitting for do you as the to of last that, investors Thank just relates we the the Customer the gentlemen. couple how help on rest and has question Yeah. My in been progressed with of questions to year we fiscal answer focused in XXX and metrics products conversation? be to or Is more likely pulled Just cloud wanted because at success? barometers some on of that. looking XXX deals? perspective figure of it and Thank cash through terms Or seven, to of eight a you. certain learn Customer more

Keith Block

Well, this is Keith.

Let me answer that.

opportunity not thinking customer phenomenon. XXX. the a This XX-year-old that's age about really in you important the is the and in we of means besides and growth is in there way CEO Customer they're a to center When really technology disruption that growth. your is era. important really age back world to the think what's thing about you with their of which to bring we're growth. prosperity cut of employees, if about are anymore, a amazing should incredible this this go We're about So taking is And where where growth with care in modern most the

So when looking for grow, a to with Customer customers, about we're solution, for they platform we're our think XXX. out a looking there to want talking we're

their the of stakeholders obligation CEO all about the I And every about strategic in and it has that is think all putting that is way growth So would world. mission to the center it an around success. customer and a

So C-suite in we we that their one and and that problem customer these CEOs that's putting because world. just number deeper Their one become of we're strategic, out with growth were when the will the problem. about being talking solutions, a is center have relationship more number solving

the about a whole relationships and through of customers. is strategy into I this new strategic deep thinking would Salesforce So in this terms that way brings with position that is this be meaning the the

worked cloud, but Bret motion if cloud, cloud, providing the then the some We organization, MuleSoft, maybe have organization. has the our that cloud this amazing about a also service have will, sales clouds, on been the you we going on of in the integration single talking one was little bit.

And continuing you a to them share. market customer vertical you between existing a of build and logo, you go whereas multi-cloud the kind logos taking work you transactional or and applications, then a this make customer throughput have once to new on vertical then and balance customers that do see how new or have

Marc Benioff

we're here solve solutions product transformation. we But maybe have may new a both right for And means right the these an to a and which Well, base healthy time they're for of particular and be area to at success or logo we whole focus motion, that continue end a position customer the very do the us. day, them. well very, be install as drive as a motion the solution at

turned for is also prepped why logo recently case motion still been is the to customers company new this we're that transformation And the expand call successful amazing those on we [indiscernible]. a enterprise like be and clouds That's growth and call, that time able and more some logos receding has first some motion we or land successful or and a continue as what that that we us more of deep in will march on one transformation the it for our for with and the and were not the XXXX. were to goals hard to

Operator

thank program Ladies we gentlemen, and have you. a Everybody and participation Thank call. day. your today's does disconnect. you on conference may This conclude our wonderful all for

Salesforce (CRM) 4 Jun 192020 Q1 Earnings call transcript