CRM - Earnings call transcript Q2 2021

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Operator

Welcome to Salesforce Fiscal 2021 Second Quarter Results Conference Call. My name is Josh and I will be your operator today. At this time, all participants are in a listen-only mode. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker Mr. President Relations. Vice Senior Goldstein, of Investor Evan Sir, begin. you may

Evan Goldstein

Senior everyone, thanks Josh. conference us Investor Goldstein, for Thanks, call. President joining Relations. Evan results our and quarter for Hello of second fiscal I'm Vice XXXX

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

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

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

Marc Benioff

call time. we're has and and been much the such so Thanks thrilled today to challenging Evan this be a you Okay. with on

how figure we me us value. indicates started AT&T. we deals our year highest of which quarter a well XX% aspects ever seven increase really our margin excellence deliver only really quarter victory many of products. is able reminds platform really is but of It really look values one story we've moment change reminds return for distress great many as how our a our like when at to XX% is It we're from humbling, us our that our needed Mark, not our quite I return have when more great we going our also look than talk here also with a our shareholders been it to heard most. at am the change core many to turn billion showing a example pain to $X.XX communities I is stakeholders. this and show for It world actually And And a that to been Salesforce us a for well about for for a about phenomenal company values, at stories hearts revenue It is so stakeholder for thrilled such really a or shareholders and with platform operating and Our really was stakeholders. quite stakeholder that to this bring before that operational has ways about in thing has our great And that our for of capitalism. and platform to deliver briefly to been us this that XXX quarter this be is for over also I'm in we're capitalism as for to this the customers broken change of been that Customer about has simple and but the really have bittersweet. across so a ago, certainly core last

you I'm was to quarter moment never to be XX,XXX this faster and whether the when getting with and stores, that contact right customer can of the is every and point, you customers. And customer really want signed it place their we've this a a to quarter We've we message our is at all McElfresh you well a source tremendous the I'll has had their know first organization single there is to is have in is that visionary a interesting with stores to the deal the I been we've thing the as whether vision February because company, whether look had really thrilled and amazing they deployed there each single They a communications time see. and CEO them, touch tell from that's that that. now time faster. an AT&T hundreds in at vision point, deliver deliver customer is a for app, in had also that who need time incredible huge it is tell And a success But payments industry to thrilled they and single another a with This right tremendous at touch we've I it Jeff users. is have Wireless. you, want absolutely e-commerce, obviously rate is the their know of that's at customer. they I'll AT&T leader truth. go that Now the we success in and PayPal. it win we that's about And AT&T

so great success see them our vision, a Cloud, such So having so on SPO, journey one relationship. us of one embrace we're the see our to is and Sales deeply Cloud Service powerful. and The they have our

that in back enterprises sector work.com try needs need to workforce product think everyone bring successful stories, needs more built ever middle command of that delivery Another incredible we've success a tracing, at many so never is is has victory that product Everybody but been really the more nice. don’t faster, in rapidly. quarter Well, everyone organizations today public look pandemic And you scheduling. This shift there and this been the safely. they is contact work.com. I a center,

Lazari, example, situation customers work.com. for during difficult stories at success with like or great internationally many additional bank. a tremendous delivered it entire during Kentucky bring Rhode the so And for University so when was the was results Just whether wins for all but many or look important look distant and partner tremendous with are bringing through Veterans contributions important University our and looked to thing to our through the like the was an Banco I de learning. $XXX conversation of Oakland is work and public State or Island. quarter schools, our future their ultimately, $XX now it students Francisco and right how at other million I Administration go I back their other through that We enter so is to proud the is these financial victories Corp local them one great San of for and just most the their Octavio we a at faster of need CEO into public sector the today most TWC be guess VF with to had Bradesco, quarter public the to million services customers schools vision thing the able total

time, but that well we core that and stakeholder not products. show idea that but we do that we've same great great to can able the capitalism for at do a is only victory been have values, been have great we to great a build this core it has really company, So

like give I'd our want And just such my stakeholders. I success had during partners, gratitude to key the it to thanks everyone a So our quarter, our that, employees, with sincere over who and Mark. of our to great to customers, all turn

Mark Hawkins

be and everyone great. Well, I well safe challenging Thanks to historic Marc. And and this during continues hope time.

this crisis than described an our was guidance assumes. quarter Marc the for and Salesforce. As company navigated customers our exceptional the better Both

customers us continue important QX and to leaves in future, that optimistic performance pandemic note the remain impact is the mindful our our community. to may of about While we how it our

through Let was results in the billion, for QX $X the first growth. in the topline time a the QX surpassed some me single and you begin with was $X.XX billion commentary. I'll company quarter. XX% year-over-year take Revenue which representing of

across of portfolio. with growth marketing demonstrate far and to Cloud Sales by XX%. grew grew grew points commerce continued Other contributing and Platform that Cloud Our XX% revenue and XX%. Service XX%. strength performance Tableau XX grew the

a of that points points currency. America growth, by XX%, performance XX Asia/Pac that strong contributing year-over-year and constant Tableau with of Tableau had XX%. contributing XX region with growth we in EMEA Additionally, grew grew XX%

be Before the should I the detail quarter's earnings guidance note performance, on the compared QX against that we call. provided assumptions following please the

quarter's business four, driven was Three, large exchange. within business Two, Specifically, certain driven five, factors. the business new modestly see than obligations last performance and notably, foreign QX and the five historical expected trends. quarter consistent creating we better [ph] performance. attrition by new with I revenue higher saw generation license teleconference revenue in actions better One, outperformance

XX% all representing revenue Our obligation QX remaining billion, at under ended approximately up future year-over-year. contract performance $XX.X

strategic intangible this a business CRPO in reminder foreign a be the that obligation includes structure billion, taxes. the metric EPS rate company up generally no $XX.X XX a expected EPS new performance discrete as revenues certain contracts. Current that to our $X.XX of investment company GAAP was or revenue which EPS non-GAAP as IPO. next included the with $X.XX. last benefited benefit note gains portfolio non-GAAP tax These impact as benefited quarter's GAAP long international and year-over-year. transaction. adjustments driven the the recognized under and future deferred renewal unrealized which non-GAAP all from revenue projected mark-to-market approximately is had As contract in term events. the notably $X CRPO, utilizes strong months remaining telecom approximately a EPS XX% $X.XX. as related $X.XX inclusion well EPS QX non-GAAP which large new excludes under higher by was corporate business tax and also nCino as both on outperformance, The consolidation properties billion is the to by to exchange, of $X.XX EPS by effects due was performance its resulting and the favorable foreign by was fixed quarter approximately of changed Please and benefited this in realized outperformance net renewal GAAP

flow, to flow year-over-year. cash million operating a defined cash in XX% to flow Turning QX free cash as million down the cash X% million $XXX our less leading up flow for $XXX operating was year-over-year. of quarter was CapEx $XXX CapEx

strong guidance QX to Vlocity. for revenue $XX.X XXXX, and our to of of This approximately to from full guidance includes year approximately pleased million we acquisition of XX% $XXX fiscal to XXXX turning $XX.X be growth. raising a coming result, our fiscal billion off XX% representing future Now billion to are guidance revenue

$X.XX For XX% revenue growth. $X.XX QX be representing billion approximately to our to we billion expect

and quarter company reminder, will the a year-over-year normalized. in As growth therefore QX Tableau's rate the represents third be

continue half may and pandemic modest strong the demand were performance consistent business remain guidance the our attrition that and mindful in assumes Therefore, on the impact assumes during trends of we our revenue the after we second to customers While growth XXXX. deliver QX's fiscal QX, how remains new with community.

We perspective mind, from and deliver customer half that over the the to are taking pandemic and highest and relevance enhance is as not quarter-by-quarter success this will our fiscal way business we through of re-imagine our are In and only year. innovation. evolve the that we continue to level

to out for look customer important investments digital our this shift to over company and success months work from is today we and XX growth we continued all environment. to realized better make the us a for As XX strategic anywhere new it next in position

we of for for planned allocating resources accelerate business into be be growth that fiscal this we originally incorporating margin spend and priority our increase non-GAAP in growth are aligned our half improvement with able With year. be will second the the As prepare of market these are to operating investments to to as raise longer year pleased we'll company our year-over-year in will in fuel strategic half. points. and resources These second intend some in that part be pull means to will are areas. being our areas the revenue in no this, redirecting basis to planned Furthermore, This go in deemphasized. that to next of to expenses updating guidance XX the they growth a after of XXXX said, we and guidance, product

updating $X.XX. $X.XX will are diluted GAAP we be to to to EPS result, XXXX $X.XX while diluted a EPS fiscal $X.XX non-GAAP be As our

non-GAAP For while EPS to will $X.XX $X.XX is $X.XX. EPS diluted QX be diluted to $X.XX GAAP expected to be

mark-to-market for guidance As reminder, future required ASU XXXX-XX. EPS a by our assumes contribution no accounting as

For raising growth. guidance we the XXXX fiscal operating are XX% cash XX% to flow year-over-year to

XX% flow by XXXX free We is the incremental growth for be growth rate cash XX% cash to revenue continue flow expected investments. be X% these a of to approximately impacted expect to approximately to of in Operating fiscal CapEx fiscal in year.

expect in at third strong in QX a the rate landmark close, quarter. have year-over-year therefore delivered we to the second represents fifth ourselves face the company now We set as growth and of fiscal grow approximately And XXXX To XX% adversity normalized. and half and a year-over-year quarter beyond. reminder the CRPO Tableau is for QX up of

and successfully are I'd stakeholders serve to for community your And like our the up We safety and open change families our support lead firm continued of your each the through continue shareholders proud you, ability our to our world. I'll to above our to employees, our customers, our and for partners, all their and around with call thank wellness. of which questions. that, and

Operator

Bellini ahead. from comes question Instructions] with go Goldman your [Operator Sachs. Please first And Heather

Heather Bellini

did taking just little I what for Mark, but show thought you us customers it did what again, Obviously progression the or if you in shape hearing how were you bit you question. just you. what gentlemen up Thank Marc are much than have the unfolded if were put might of much and expected, quarter just what guidance all the the in I so better thinking versus this you wondering to it. thank from of the [ph] how a Einstein was kind appreciate quarter could Great, you a now? you slope your versus progressed? what

Marc Benioff

Well, that question. for thanks heather

things profit We is we And the going to with closer values to to to that adjustments aspect that our moment customer the look those you believe changes knew teams, job. out quarter we just schools of You that going ever make have going speed was lot time going decision very we saw as mean, schools fashion. a was our us, mean the know, our were quarter to I and We like to amazing a change powerful. saw closer down really started to This And for us everything piled were honestly, of were the or to a we can't the a to of made for if has fashion. going work We values a just as that this incredible brought to changes. to up teams, we shifted company be bittersweet. number the challenging been and I are our be to way basically the that but were fantastic the safely and than that customers. both started keep employees and a to is with work.com, critical a that are the pipelines or our improvement We we it time QX call We're is home. to we we The such said we of remote work has were doing that we of those engineering started and so all working We're to in of had back of called after then company. businesses been shift. going shift. the these it to third as happened that you it many really and that second you to to to decision safely, before, see make on quarter. succeed this are a at And if to are to operational families, build. results increase end incredible. you see you reshape momentum right just to as we to values, now it delivery non teams aggressively mean there operational change to just help doing beginning going stress a did paid where I We at so we we was have had I and increase doubled XX,XXX in back operational humbling in we know the I going that we technology change quarter it made at in these for going on to get that well. core this as for this, and much get we've our and moment from got understood to a what moment or

so core said So through us this I there now where values. are watching She our that in And so many Island. in very at stories to one And to products went value. whole state our and and is one the has company is This whole really for entire moment is that's values third I address that some a as attention our core Raimondo very think I powerful company the the of bring for I is, done about what Gina paying of accelerator. that when many, look watching really the what company. is been really then but powerful but success are is going our is the Rhode

this to know going that things state. of have us now, steady an stage to to She is this incredible to came do. amazing There's we're make we're You our safe. going governor

going have is Of wear course to masks. everybody to

going shift us things crazy. that have want and these that's and back reality are the very, and others is never able how other powerful get XX so very help happen. that's to to going for but all because to her need were, to testing, center. to doing to deliver states to many scheduling. we're and to we a increase we're command do going We're to things teams have all be So new our I have our going do I to need to

work going and means we're to digital Bret, to want you in these how make in just we're digitally, of adjustments. responded? are that organization educated it the have We're that living world. world and about we're how the all to digitally, the engineering new talk with We kind do digitally,

Bret Taylor

talked mean, entire being about I you lot our acquired, seeing base. just research company, essentially a technologies we're how And you're in across Marc. incredible are Yes customer our transformation just seeing and that numbers. our some

one go months saw year-over-year think is channels and Like the I house. direct-to-consumer. shifts many XXX% up almost an Chat They WhatsApp as And our our Cloud. of think Cloud deployed revenue been they direct-to-consumer our Commerce text that Commerce year-over-year my trying our and XX% I six and an example, in messaging for Cloud it’s -- time is increase Sonos. Marketing a in like saw this of gone consequence. is XXX%. a it and all of and in We and I incredible growth of customers exam, great our all consumer Apple products, an like customer the in communities this just illustrates all use digital employees, has past a in Probably so music [ph] really also to terrain use move of to to think go at customers. play they This story, But great incredible our that behavior, developers implied, you of there’s Sonos direct-to-consumer. commerce had best and the sustainable the as

a so of agility. sure can empowering navigate I XXX company it’s to Customer them that so the our represent crisis like that Sonos trying Raimondo, help successfully. to a like they values themselves to listen And our is all able crisis. customers you this deeply we’re one of the And this be said, as key as privilege to great and Governor customers navigate with we’re making

Marc Benioff

I was Banco other late in all what Gavin, their also, with the Gavin, customers seeing you CPG desire of about with we’re met huge from from and speed. of It to for give And Octavio seeing can illumination had with much capitalism. customers also We’ve transformation meeting a one last well mean, Lazari. for your us them, just morning with ESGs paying so company. customer I aligning a a position and attention tremendous base? they’re stakeholder some with De met you’re customers. so we France. many night a Bradesco

Gavin Patterson

weeks in but the have Well, business down the the passed, we I’d first to saw been through the Marc. to One that the we saw of couple imperatives, afford read transformation to with any is, as things, closing realize be they confidence just so of touch moving remotely, it went last companies call digital on call, a And longer. builds once we put of couldn’t had we would quarter. we begin off this couple shock managed did out and

for probably take quickly. Bret as deploy So I and months, it been. deliver a make company. quickly they what think but sometimes relevant. together now our are proposition periods powerful leaders customers. a weeks we is I ever the question about is put up customers through quarter, pivot team think It’s very say. and can we had a the We to relevant days, core and is we they I That - have We agile our we were higher that were to performance customers was than have not that clouds it’s key like that. demonstrates That there And difficult means if very sales what and work.com. we spin can we for they the And things high no actually would would that was great quickly quickly with word, us to these able were very for saw where there from help typically the products the decisions

it’s with real which business. But think been I in achieved the site the context in. confidence in say the I’d it’s sensors, tinged real, there’s

question of There’s into our still no something of the away. what that's the want. customers we increasingly that. carried undoubtedly look about year. getting But offer not uncertainty really lot is There’s a half as we We’re second

Marc Benioff

to during so there been you’ve and lot about year, about of Could Revenue highlight many you’re little us you of delighted as I we welcome absolutely Well, team I role thrilled part saw of what the and more a action of but a a in you, as the but in public few thank saw Officer be were bit for we Chief in officially running more sector, to You’re now and way also our team. the couldn’t officially. sector mute, the you with them, we’re mentioned know we Gavin, Amy. have the on a Amy, quarter? stories. public by

Amy Weaver

would myself take at if I did be some not up It to a not point. yet call forget

first public and quarter, it’s Dave a the entire has think trust give I collaboration that to second I keeps sector type his the success and of quarter the real great to been both our team. that in shout financial Ray, a have and [indiscernible] just and building. out

thought partner it’s new situation the that and with you, but do And saying stood just I do. there were to we this. you. for get across struggling professionals governments showed And and and other to new what this said, Salesforce despite mobilize with to some Island, of on Salesforce really just a things can world. of within collaborating out how a in believe team to deploy pulled from of and know would isn’t reach in me were hours, We quickly, and values a focus the where to Rhode together We Dave team us. didn’t have that I partnering seeing terrific know states, our team to it we to and not the how They out a have the know around really they say.

Marc Benioff

Heather. much, right, you All good. so thank Very

Operator

Your RBC. next question with Zukin Please from go ahead. comes Alex

Alex Zukin

a congratulations the the of and stunning around Marc, maybe this get questions meaningfully some how the about an And is, year and possible confidence pretty selling in are world a days improvements we scenario it that too this a still If XXXX you think you you of that just or in about in week-by-week Thank confidence question, just you pipeline digital on my that Is set Virtual about stage? converting us pipeline, I Dreamforce see tell end to And that is what guys. on far around relevance absolutely does coming particularly taking out of and the increased - Gavin you recession, your meaningful XXXX or all pipeline based there these quarter. in it. questions. hope of acceleration think guys can the the crisis? then from for Hey, new relevance? kind given we lot of in well, your guess how where a referenced you’re and that do that? safe I accelerated

Marc Benioff

them, little is faster. I've looking us Gavin to Salesforce. executives that Well, how kind that I Francisco, as you crisis forth a just see And phone. Francisco of have or heading so and people here. third major I, bring my that tends an appears one in this different one all I'm Well, to with video from what's to appreciate been that each really I that be that accelerator the I future their the has great of each maybe speaking And Each my home. crisis through of the fourth the isn't that And you at are in crisis change? Metallica all and so take I and and is that London, moment complicated in Amy, there phone and to, But San a I'm future, ask as a images to are are thing to each yourself, these advancements is of month in happening continual we're been next San like question. it. in in your different. -- Bunch such or Look, is where quite CEO Dreamforce? of we a But alluded screen Were is Dreamforce looks guess things We is But We're The not Dreamforce Dreamforce? you how know not the for important that. can't I XXXX. no you to about question we acceleration. tell to playing. CEO, with. on because, that. going get many I it's think Brady ready

we're to not investors. employees, that, yes, You together our going a grief. in that as all grieving you we're is going There's And there We Ohana, our keynote a we're sadness know, our being room. know, customers, not one together. be the all love

back and Hotel all in Hawkins room Investor have I court first I thing dealing mean, Day. together Mark We're unusual hope so. where I such year, And no holding it's, is pandemic. We I characteristics. sure? that all don’t sad. this my there has big mean, will this with with really at we a a and virus everyone so of I Regis again? we're a big St. in Am a a the know. global lot is is pandemic, be we're

So clients to made that now are in how participate. we employees their advising get changes to we've Salesforce make, our to

We have employees. XX,XXX

everybody the results these has playing be game. achieve and to us For to field the on

also the train incentive give them, to to them have keep them to We motivated. to play,

we like is person XXX mentioned I we've we're we a started, startups the the where zoom, like, and call, every week talking since That play-by-play Dow moment. are week. hasn't world who people all what our company. the is and not like companies on for had but call hands pandemic a a giving That's do. whoa, what XX telephone entering them This do. has them little happened think to around company, XX,XXX That's this know, were a all like I've an this you have the person, before, a will since

we our and work.com, Salesforce to had market that we've show us re-imagine our Leading why relevant and we realized built customers sell That's we be So, why in up because to built Through business to to also, realized customers where That's our the why build service need Change anywhere. Program. have we imagine That’s to relevance. because our we them. Anywhere, we

our enablement It example, ever Together far I'm noticed are call a through a over this like with know been that mental Change other reporting Through third of XXX sure why every in watched one million mental number people things. many are day pandemic. Leading bigger put It And reports. issues issues of are Be on people call. that another level people or than health You we just we've was who the I you anything of Well mental for know amazing. employees happened. challenges. the having is health health just done we've That's doing may have having

scale we you'll it you before protective was. find is XX never personal resources. velocity of amazing. health personal this million amazing to know to If I equipment, mentioned health I we this resources It's or bought what YouTube, go think publish mental at had protective mental didn't like equipment and pieces you We've

that. to who I software was employee know be certainly. trained. runs of become incredible every Tableau mentioned sure if acquisition We think they the in also And, it, the the ever successful And, going don't done I history know CEO, on data to the which, retrained industry, making Adam he with And best such doubling ranger Phillips, by a hub. and you we're built trailhead a way, this most that genius it's that is everyone the down mean, I we

imagined. has could never If a you go I, visualizations you mean, talking and just constantly that's to our which haven't we're seen ways in everything it find major presentation did in at should hub, Tableau of team data mentioned just scales to which have on Europe. you that amazing public.tableau.com digitally you can to we I I new management -- customers

our of us gives is also distribution to with a have organization. it the not So accountability subscale We're scale. organization, which ability

a evidenced different I that any add and talking it's us. same beginning to the of effectively able of with the up, distribution have are by company. these you a the software as we're even enterprise mean, a powerful able enterprise company. we're we all it to This you level go-to-market not values today. numbers our our we the on this. organization software core acuity have because The that to and us. patient that plays the We and has and when We're manage compete the enablement company field of has the did in These scaled ways at We're that's And the and call relevance we on all that values, we're changed tactical changed aren't were. same players then not apply, that before. pandemic well

pick their a number analytics. all from lot the these amazing. we're a A now We're But want the need from the Dan at are to to of that's integrate not like like lot look customers every the some focused tightly them Schulman for which from now, and a up one in Where from team don't Cloud, by year this success mean, years the in two field, he really going But clouds. our they're just We're singularly can [indiscernible]. at over way. I of market. we customers quarters are ERP. in CVS leadership We're We're tremendous, to focused. to evidence is, public or be incredible. ways. example, at same, their connect we one They're CRM. results together. think our They're I not in the with two that competitors him. quarter, in from in We're with do everywhere. is intention was call, now, enterprise so Or a our that need I And I we our mentioned, we new our helping of like that. and to look or Cloud, So know. we'll quarter in if We everything we we're Sales says, or PRM, they're They're for be competitors not. that in PayPal, number Service now I are a need CRM,

customer There's have for but executives imagination amazing the actually have he's work.com. XXX,XXX able powerful, had. those then how but was how That's product, one they come the to day. I they return pharmacy of Just their with and on the awesome, be have never Roberts This together each been doing show so an this a how of -- key And success. is they're player tests. integration pandemic, can and John an a tests in vision to and their, ready ramp

we big then Commerce to day, a those how, and Cloud is it's So our guess but amazing how think to other VF largest talk these vision every impressed tell not almost wear customers Cloud mean, Armour doing have our old Maybe never mean, and And Face really with North am. off I the I powerful. with I deals And ever. a we deal that capability Commerce quarter. I'll I there I called been tend we things. to jackets, great customers where be customer, technology also we've forget cold and with [indiscernible] it before. you, act was help Vans. and really one mind I on level clipped on a of on this are to my That with clipped the that that getting, on Corp. love we another speed has been Under company have I happen. was about about our especially is because how I they're

to know We best that the We're all that. continuing it's look, So unfold. doing can. we

with hearts those Our are challenges. through are going serious who

focus So very that much very this we greatest change. and businesses for just continue the moment humbling to is much is a on bittersweet. platform And

Our products change. that platform have to be

we that We continue need our to role these especially the we to that We we be play be know Our what know times. values that industry. light to during are change. in have for light, platform a difficult and

Operator

with next comes Taylor Bank. ahead. Your question Deutsche from Please go McGinnis

Taylor McGinnis

for quarter. congrats thanks Hi, taking on and my question the awesome

the solid, expenses guiding guys So was one growth in XX growth is considering revenue back year margin forward in half. and I guide mid teens improvement you it full to really the the operating are that some raise thought fuel in to the basis pulling points.

how able teeny driving from to or the wondering pull you're and quantify if able coming savings the further So down if forward see perhaps the to saw of XQ that guide, line to like break curious expect expenses? is in down much components you you're

Mark Hawkins

We XX customer in for be very for investing serving the success and question. Taylor, term really of everything to that's to especially we're basis our know, you the appreciate the fact and you making thank all that the pleased stakeholder. Yes, long points that. then were I raise this our perpetuate further

got So, about investment. to go-to-market terms in areas, that. But I investing the growth acceleration particular, it in think products, in think, specifics right. about of the quantify We're we're think not further you've prepared of and I think

I frame a good way is think that. to

want course, a getting choice making but to as where and terms Of We've how the long thing margin, which is model. balance, play. operating can to but about and what a we also deliver, choice deliver, our record we're QX, strategically well, in again, of some we're a business over growth teeny is trying level profit we benefit that's our We're amazing profit we an shown in invest.

approach. our that's So

I think to in nailed I helps and the it make able raise Taylor. and some we're the of you of that to hope be really pleased investments. terms things

Operator

Winslow with Wells comes Please Fargo. question from go next Your Phil ahead.

Phil Winslow

of congrats drill want Clouds. specific on quarter Hey, strong good the I and thanks. It results. really was really some a into to down

to about obviously, go became Can quarter in continues Service how news some Cloud, last to your dynamics the growth. the and stretch that Service that really in this of And the you think continues talk sustainability basis? material seeing that biggest of gap. just that cloud there forward you on Specifically, do about And that you're deliver a Cloud? robust

Marc Benioff

and six rate is lot that a revenue grow XX%. Service They including on huge. Cloud messaging and Cloud. velocity another record added that comment let on huge. I me know, done Service The amazing had continuously it me are have huge. know, the grew than continues at to lot value due It innovations. layer very numbers at, a than has revenues growth growth The Well, to right, grow to to, the don't you're Service It's a sure, year-over-year of on as products, the built And XXX%. on level you team let The Sales a saw new are now on of in well. Cloud just use Cloud. of fantastic Cloud. then high touch job. that months all channels engineering some more last But Bret is a the fronts, has platform ask The larger Service

we that a truth And, customer, the that's for key whatever, Customer This service your plenty you're a desk a part XXX in Service desk solution, to and Cloud as of at source single vision. not it. but of our customer has or or really that day or stoke, XX% service do, isolated conversations when help have way. a idea because of be There's you're Bret deal growing companies part building quarter. XX of that XXX% at per think I per nearly the powerful log every during pace building it's of bots illuminated day of quarter-over-quarter million

to with call bring the home work to in service done to work all together and by be to way, professional [ph]. combined able vision for analytics XXX, is P the because Customer example, why other together, all it's is PayPal store salesperson that's sales it systems center the field Tableau. through needs with Our be to to like professional the at combined with has service [ph], the is because look able service Raytheon with their The a through get able combined marketing, And Hilltop interrelated. in with

that? would come like illuminate like around you vision to and in Bret, here anyway, your So

Bret Taylor

you fundamentally, go it truth to in Yes, Marc, for business. mean, characterize to single they well. coming XXX. I service, proposition when Customer of XXX, anchor at some it transform think where from. integrate anchor really that of momentum digital, it's deals that's the tenant can They change tenant the their that's it's you the value their I Customer Customer of really for that can us source and are a single is source truth. build that sales talks face of And so is can PayPal, customers about, our And customers, I of coming the the of XXX. of Mark unprecedented look And, like they their think the customers, the

And Rangers digital Standard impactful I've Customer was, that the XXX employees think is just the we that and these talking out I to do transform in call most really really not centerpiece actually the Bank. this their the complete really executive I the Service trailhead. way customer all again, the probably Gavin opportunity culture become They're on And, for XXX earnings powerful a achieving is that and things in is example to Rangers. but XX,XXX stories mentioned and customer the story of Gavin XX,XXX being around rolling Africa. with really team as centric that that to transformation. really calls done last their solution Customer down goal think illustrates the were of becoming with the past executive largest transform team power quarter become service is of transformation, this their They're of an using trailers, the Cloud power the about one great all bank platform. technology, Another in our a It's of

Operator

Your from Citi. Please ahead. go Walter with comes Pritchard next question

Walter Pritchard

portfolio? being some I thanks. question GMV customers to Hi, and know I'm and have as that Commerce just Cloud. to show degree holistic back the product, up. how how a up the a wondering paid Commerce on Commerce Can understand across sale driving in us Cloud the impact in of come help of Cloud, you and sort re quarter similar on that's they volumes

Marc Benioff

for take Bret, you that you can us? can

Bret Taylor

it's saw I our our differentiated digitization of Commerce XXX% growth it I about that when value of over Commerce. BXB proposition, the customers, all Yes, channels. reflects it's BXC broad two to And things. And, Cloud One I think their think Commerce talk really past both year-over-year do and when Marc we GMV commerce. think this I is I quarter, and looked we at and really

direct their channels, their platform do partnerships. the it's And one warehousing, can it's we're that. that Now, consumer it's really a

is of thing XXX. second rest the integration Customer Cloud, of Commerce The our the

management us technology many that everyone Cloud of for on about you our When Cloud, the the that, facilitates I end-to-end pickup, call probably Commerce customer think experienced first order online time. buy We've right? our experience. solution, that's Service really of the think the all experienced integration curbside that has that, and

on that it's world. customer the picking end all experience, been or the those from transformations up important have the never doorstep, order to you're this it and work being curb more your in of on anywhere a making But the experience, Cloud really want to part I in growth their of indicator a really we're good be that to also of a is providing our solution GMV that right broad Commerce commerce that you're all So Commerce clear to is digitize customers digital that through from whether way delivered Cloud.

Operator

Your go next question America. comes of from Kash Please Bank ahead. Rangan with

Kash Rangan

end certainly impactful Tableau, you excited Marc, maybe really My are profound for you, to the question software to et bounding very being statement. indicators few this finding Hi, up spell thank a sounded as much. acquisition for expansion, And could cetera. see well. growth It you you margin industry. Salesforce, rates in made about the the organic very leading most It's solid absolutely see,

look XXX picture so a help the much. do Thank paint XXXX for you digital at XXX into for can and what As a digital looking Tableau of Customer industry Customer us transformation you XXXX? and transformation

Marc Benioff

incredible think appreciate deals. analytics course, know That's so public talk rest fortunate you to very one use ability you I'm this data see brand, you It's, when us. Bob question able community either and which of that business, impacts a But incredible a Plus, sales enterprise like The because use, capability of don't spot product. great, our easy companies brands. themselves were understand It's analytics visualizations of are analytics to And that they've the was also which of impacts three the analytics, can awesome. one incredible. through culture, Well, we with it to world's Einstein very and of It's our be gone But of domain, because of that is deals companies, the at the when wall-to-wall which it's us. probably or or doing understand XX I quarter, in reports, to companies they highly exciting, you and I Moritz, this which delivered I'll call data, somebody Sales how we've compelling that's an group. much talks it's going Tableau quarter. is it, new like PwC, loved to many of really amazing really sam. of what one in tell Tableau always about says, and that deploy leading for to be platform. PwC those we're us these to market the largest tell that Cloud, plus how great me easy the advanced is talk me. year. to to they let sure types build can very you, also We CEO But the parts programmatic but And they of super and the had this were analytics enterprise it This a dashboards means it's visualizations. is But about kind [indiscernible] of class. I has the AI, software last It like so is a, that lot ability a most public.tableau.com. that you easily. these Tableau this acquire the see simple, the build impacts with

made with with conversations they And companies become that that, stuff can how basis? Tableau many see for who But you'll in. in, this is that so innovation, so that just a the a has decision lot Mark, And have their part Customer fill of lot there's of does incredible, how us And it our impact exciting part Tableau. Salesforce, are now new financial on coming of many you of a coming see XXX. announcements

Mark Hawkins

do I just share so. Yes, a the Tableau. happy And serve customers. Marc. our to such to company about I'm also It's excitement great that

things One this quarter is of overperformed. was nice that Tableau in the

all-in-all, more it of they a deals really number not offering, the Marc, what all integrates had of And we in license the in recognition. driven particular years to top year, in see further helps one we term various that, it beyond call the couple With in the of to line. sense more is by liking people how it's happens, wanted the And the the And that year. year, is digital that into also it the where in who but exciting wanting nice their a years transformation. offering us go their a for out benefit and product, us revenue multi invest just when it. But but customers even so

performance Congrats listening So it's Tableau It was been sure. the a in today. very very nice team to positive. for who's

Marc Benioff

here I'll in just well, and second. And Mark, think say, come a for I'll I and also

two years We also, we're you MuleSoft. know,

a heart Customer in two to Here's ability authenticity, these business has you you API's that legacy us you both is capability, The top bring well. companies of going can together, another, they're them on give this because for working this put integrate been say that it's so changer everything all customers the systems our with tremendous your we're for a on to Mark, accelerator thought? and game soul of extend to XXX. huge and this and and

Mark Hawkins

definitely Yes, Marc.

buying where customer. XXX MuleSoft has well. MuleSoft And a MuleSoft, And result multiple and, as was again including MuleSoft, you problems overperformance. I the so your products. most more this, to, In term and you Again, they're of really contribution will, to dialogue people contributor effect of overperformance, our MuleSoft again, if and with. nice congrats the to in selling, our when importantly, fact, you it's helps mentioned again, Marc. need solve I even product that like add, us they're members might team that on progress, this get products, core again, with help for just that, love Corporation, also QX, to Marc, or a us or licenses the customers if Tableau, favorable whether this our VF And all

XXX And with the And and is that, the these whole attrition And and more we very contributing Gavin that to Marc more products and hear our we're more we're critical clear solution talked this digital MuleSoft integration quarter we more had of imperative, over better MuleSoft our and it rate our mission mission that certainly of more that market the is part adding in because are becoming was is products, critical. that one had to expected. impairment sheer effects MuleSoft results. Tableau of notion. that's to that. adding XXX mission and more just becoming with is becoming MuleSoft One things about of is and the this performance than critical.

Operator

with go from Barclays. Lenschow Raimo Please question comes next ahead. Your

Raimo Lenschow

et talk Hey, Marc what thanks in lead about a like, and, as kind terms of like, for well. always shifting in living about cetera. maybe engagement then also, seeing a comments of event me maybe bit for new size and in And squeezing of in kind was little can that bring a that online, that generation, the earlier customer can kind of terms this was go-to-market about how deals investments? Thank congrats me Dreamforce, for bit Like, But that have targeting? Gavin, we more and in for being you the you you in environment of talked big we're Dreamforce you. are question little you're of

Marc Benioff

you like Bret, to would take that?

Bret Taylor

Yes, sure.

Marc about on focused beginner's that thing really a is, with having I one So, a mind talked lot think our we're business.

completely is So business we're the as Marc way is mentioned, this of our pandemic and first transformed. doing all

person. engage my We're of going customers their of our trying when as lot out. new ways. San to zoom be in way a I ability was behaviors Dreamforce, we've November, via being times in in analog favorite about to October, really not And media. things feel in happen completely Francisco one Marc And, digital than engagements totally a past demonstrated our said, else, sales talked year. digital own That's I'm to rather digital because we we of to the guide But transformation. not anyone I more than quarter our of digital we when customers translation. translate like I of All re-imagine into your them. like with the transformation That's a Don't think always bummed it's over this

earnings made where that Parker staring hand, said, stuck with impersonal. feels on me we're all think at the call and last a one I common he screens, it so

customers staring at and On and other I'm same the the into more of rooms, living oddly hand, colleagues time. all my it's personal

the The we've completely the our and transformed, really there's what our success not a distribution think think transform we fact, than been. as transformation of I'd confidence engage But is ourselves. our technologies, humility that a teams, changed. our has way I ability past And customer with environment. broadly, right our unprecedented I mindset think to developed is, success with our has there customers transforming the a reshaping predicting to ourselves executing say we're And in that of ever has ambitions to to that in we able So of midst digital change, met. transform over internally they on the meet the an our for constantly to the future teams, I to customers imperative think and have lot of now customers broader company developed be ability We're going be with we've where I think hard. need quarter, our to really at continue

Operator

go question comes next Your from ahead. Sarah Emily Bowler Please with Hindlian Macquarie.

Sarah Hindlian

so And how really feel all Marc, squeezing Great, in. the for and just back and specific thank up forth do much the me market? think question you a around M&A the IPO TikTok. then you my appetites questions today about M&A look and Did taking you picking on impressive are quarter, resilience of is the or going on here but better of with these could given wanted generous the understand the to merger I the normal see your stakeholders, being And from to employees your broken and really reward and that bit to commentary lastly, home? you work just of margins other be then nice it's I mainly made, shareholders. investments and balance a delivery still say new more a

Marc Benioff

the thanks. a M&A and environment in IPO. mean, Well, very certainly markets, interesting seeing in we're I

feel for you were buy they see able for because and Salesforce, companies them. I in not, environment. were Tableau have have no financially. It's these not able us moment. we're honestly lucky way, we do really not the no when we wouldn't are don't to both a very worked public we would We company There's today, an MuleSoft how math. been can to it M&A I we're think a -- did, up like it's that pick like that

But the about environment. a plan We in don't just focused We focusing and major always mind could it is, executing good see reality plays execution. Look, know we M&A of focusing we're really not these of operational always now. right it. values, what see that's XXX Maybe and that. I a complement We've business. our own we're to right on part maintain is things our are But our two see changing. think, on. made So business, don't now isn't beginner's Customer you extend these our on I that. change, things our this course,

Mark Hawkins

take the me Let for your question part that question. margins growth and be Thank on second the normal? Marc, could new the investment be and you of

to executive of, those one, We reassessing opportunities with we we the our us, we cash continue making at operating number want always to growth and the suite. deliver always expand we always are flow. to always trying we're in We're critical And front speaking. and of know that. are obviously, mindful want balance are how financially margins choices that So, three

raising. We're and the but trying are we rest keep we be positioned of we the well eye to total So the for We're forward, given serve for so balance customer have year, to an to that this opportunity, trying in on we're, be addressable our pleased going better. given always to our always market that think the right stakeholders.

it's balance and we're your we're take think be right assessing the always today. always we and better. So I trying point, to

Operator

for to the That is the all turn for remarks. closing Evan time Goldstein back we I'll questions. have call

Evan Goldstein

Thank joining the on you today. call for us

you. question, any If follow-up us please I you Thank look email on at have QX investor@salesforce.com speaking with to you and our forward results.

Operator

participating. for today's conference Thanks This call. concludes

You may now disconnect.

Salesforce (CRM) 26 Aug 202021 Q2 Earnings call transcript