Salesforce.com Inc (CRM) Q2 2020 Earnings Call Transcript

And that’s what we’re doing. We’re doing everything we can to build deliver this incredible vision. And we couldn’t be more excited to build out our Customer 360 platform organically, as well as through the acquisition of some phenomenal companies and some phenomenal talent. Now, with Customer 360, we’ve just never really been better positioned for the future. In fact, we’re at the beginning of enormous wave of digital transformation. I’m certainly seeing that here in Geneva. IDC forecast global spending on digital transformation reached $1.18 trillion in 2019. That’s an increase of nearly 18% over last year, truly quite amazing.

And Salesforce is at the center of this massive shift because every digital transformation of every single one of these companies that we’re talking to begins and ends with the customer. In fact IDC also forecast global spending on customer experience alone to reach $641 billion by 2022. Every company needs a intelligent 360 degree view of their customers. They need to personalize every customer experience. They need to predict customer behavior and anticipate their customer needs. And they need to build modern mobile apps quickly and deliver the right services at the right time on any device.

Well, that is Customer 360, our vision for bringing companies and their customers together, and it will be a huge growth engine for us over the next decade. And for our customers it’s their aspirational goal. They’re all trying to create a Customer 360. They want a Customer 360 to see what’s happening with their customers in this incredible time of change. And they want to understand their customers and connect with them like never before.

Salesforce is the number one CRM, and our Customer 360 platform is a leader in sales and service, marketing, commerce, communities, integration, app dev, and more. Customer 360 includes amazing platform services such as absolutely leading artificial intelligence and breakthroughs, envision and voice in mobility and security. And because they’re all built into the foundation of that platform, they’re available to every one of our customers to every app and everyone

We’re operating a tremendous scale. Just look at some of the daily milestones our customers have helped us achieve with our Customer 360 platform. 4 million sales opportunities, and 4.3 million leads generated today, 77 million service case interactions log, 4.1 billion messages and email sent, 4.2 million orders processed by 53 million reports and dashboards created every day, and 700 million commerce pages.

We’re delivering world-class AI with Einstein — Salesforce Einstein in Customer 360. It’s actually generating now and I know many of you have been following this, and it’s been incredible for me to see this. But we actually do now 8.6 billion Einstein predictions a day using our market leading artificial intelligence platform. We’ve also made Einstein Voice and Einstein Vision available to every Salesforce app. And these AI powered capabilities are the future of the customer experience. We’re also extending the power of Customer 360 with new services like Salesforce Blockchain, Salesforce Maps.

And as I’ve seen this quarter, specifically, Salesforce Blockchain is the world’s first declarative blockchain solution for CRM, built natively on our platform. And with this new Salesforce Maps, well, we’re adding intelligent location-based services that improve productivity for sales and service employees to the field. We’re really building out that Customer 360 vision and our team has just done an incredible job getting this in the hand of customers.

At the heart of Customer 360 is our incredible community of our Trailblazers. They’re using Trailhead, our free online digital learning platform to get the skills they need for the jobs in the digital economy. We’re more focused on this digital education than ever. And we realize to achieve this vision of a new economy, that we all want we have to deliver this next generation vision of education as well.

We now have 1.5 million learners changing their careers and changing their lives on Trailhead. It’s a 50% increase over the last year. And really cool, just last week, we announced a partnership with Southern New Hampshire University, one of the fastest growing universities in the U.S. so that Trailblazers can now earn college credit for free on Trailhead. That’s just an incredible lean forward for Trailhead.

Well, Salesforce skills are in high demand. For those of you who watch what happen, I think just now about a week ago, we saw that the Salesforce developer was ranked as the second, number 2 on Glassdoor’s list of jobs, with the best career opportunities. That was amazing for us. A huge economy is developing around Salesforce, one that will create more than 3 million jobs and more than $860 billion in GDP impact worldwide by 2022. And we’ll continue to create opportunities for everyone to participate.

With our Customer 360 vision, with amazing Einstein innovations, the millions of Trailblazers and innovating on our platform, Salesforce is incredibly well positioned to help companies transform their customers. And you’ll see all of this at our — all this innovation and all this amazing customer success at Dreamforce, which this year will be November 19, in San Francisco. You probably know, it’s almost sold out, so you better register now. We are really right down to our last few seats. And we’ll be bringing together to the thought leaders, industry pioneers, amazing innovators, incredible customers, and of course, all of our Trailblazers for four days of customer success, trust, innovation of quality and learning. Dreamforce is an expression of our core values, our commitment to giving back, which have been the key to our success as a business over the last two decades.

For those of you know, we also — something about to come out, which is my — our new book, Trailblazer: The Power of Business as the Greatest Platform for Change, including many of the concepts pioneered by Klaus Schwab here at the World Economic Forum Geneva. It comes out on October 15, so you can pre-order your book now. And I hope you’ll get a chance to read it and let me know what you think at Dreamforce. And until then, I will look forward to see you — all of you in November.

And now, over to Keith.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Keith Block — co-Chief Executive Officer” data-reactid=”61″>Keith Block — co-Chief Executive Officer

Hey, thanks, Marc. And thanks, everybody for joining us on the call today. As Marc said, we have an incredible opportunity ahead as more and more companies invest in their digital transformation. Across every industry, every geography, they’re turning to Salesforce as their trusted advisor into our Customer 360 platform with the foundation and catalyst for their growth.

That’s clearly reflected in our Q2 numbers as we continue to see great results across our clouds, our industry solution and our regions. The hundreds of customers that Marc and I meet with every quarter are looking through a vision. They’re looking for a strategy that will help them propel their growth and to get closer to their customers. They’re asking us about the future of their industries. They’re asking us about their peers, their competitors, and how are they transforming. They’re asking us about best practices from other industries. And they’re asking us most importantly about how to innovate. But it’s not just about technology. They also want to learn about Salesforce culture and our values, and how we can help them drive success for their customers, their partners and their employees.

Throughout the quarter, we continue to build and strengthen our relationships with leading brands around the world. FedEx selected Salesforce in the quarter is the platform for their customer service transformation. FedEx will use Service Cloud Einstein in their call centers to drive agent productivity, with our AI-powered recommendations and Einstein Analytics to get a deeper understanding of their customers’ needs across their business.

The Union Pacific Railroad system, one of the world’s largest transportation companies chose Salesforce as its unified CRM platform to deliver faster, more proactive service. Now, that includes automated shipping notifications and tracking updates, so the customers can plan better and improve their shipping experience, very important. Airbnb turned to Salesforce to power its global messaging program. Airbnb expanded with Marketing Cloud to continue to deliver meaningful, hyper personalized communications with its community of guests, hosts and travelers, engaging with all Airbnb users across the globe on a single platform.

And we continue to expand our relationship with Marriott, one of the world’s great companies, which is using Salesforce to better anticipate each guest travel needs, and display relevant offers during that state, and provide a more personalized customer experience. Now, in May, we have announced Einstein Analytics for financial services, giving wealth advisors, managers and retail bankers the AI-powered insights they need to better serve customers and grow their book of business.

Our momentum in financial services continues. We expanded our relationship with HSBC and formed a new relationship with UniCredit in Italy in the quarter. In the public sector, the U.S. federal government increased [Phonetic] its Salesforce investment, including the Bureau of Land Management, the USDA and the U.S. Department of Housing and Urban Development. A critical part of customer service for many of our customers is also field service. It is incredibly strategic to their operations and differentiates them, and that’s why, as of Q2, field service lightening is growing at nearly a 100% year-over-year.

Now, in the quarter, FOX Sports chose Salesforce Lightning to manage production workflows, employees, equipment, facilities, rentals and more [Indecipherable] And with our recent agreement to acquire Click Software, we’ll be able to deliver even greater field service innovation to our customers, so that’s we very, very exciting.

Our international revenue growth continued in the quarter, super strong with EMEA growing at 30%, APAC growing at 27% year-over-year, both in constant currency. AXA, one of the largest insurance companies in the world is on a journey to a global 360 degree view of every customer. And in the quarter, they made a number of strategic investments across several region — divisions, including deploying service filed to give their insurance agents a complete view of every customer, enabling them to have smarter, more personalized conversation.

In EMEA, we formed new relationships with HDM in Germany, the largest global manufacturer of offset printing presses, and fashion retail organization, Esprit, both choosing Commerce Cloud in the quarter. In Australia, we expanded with [Indecipherable] and formed new relationships with Ramsay Health Care and the Australian Department of the Environment and Energy.

In Japan, we expanded with Hitachi and Mitsui Sumitomo insurance. Our partners very critical to our strategy, continue to help us deliver customer success. In Q2, partners were engaged in 68% of our new business. And these partners continue to invest in their Salesforce practices. Global partnership certifications are up 40% year-over-year. That just keeps going and going and on. All seven of our top consulting partners run their practices on Salesforce, and Salesforce is their fastest growing enterprise practice.

Strategic partnerships are absolutely critical to our future and that’s why we’re thrilled about our new relationship with Ali Baba. It’s a global company. It is important for us to support our multinational customers wherever they do business. And finally, we closed our acquisition of Salesforce.org in the quarter and we continue to see incredible demand in the non-profit and education verticals. We work with more than 44,000 non-profit and higher education customers. And our employees have given more than 4.3 million entree hours, and we delivered nearly $300 million in grants, which is pretty amazing.

Last quarter, I mentioned making investments to fuel the next chapter of our growth around the world. Now, part of that investment is bringing incredible talent into the Company. And we’ve been very fortunate to add two extraordinary executives in EMEA and APAC to our international leadership team. Later this fall, Jayne-Anne Gadhia will become CEO for Salesforce U.K. and Ireland; and Pip Marlow will be joining us as CEO for Salesforce Australia and New Zealand. And we’re very excited to have them both on Board. They’re both great executives.

In closing, I’d like to thank our employees, our partners and our customers around the world for their support, and of course our Company’s great execution. So thanks to everybody.

And now, I’ll hand this off to Mark Hawkins.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Mark Hawkins — President and Chief Financial Officer” data-reactid=”76″>Mark Hawkins — President and Chief Financial Officer

Well, thanks, Keith. And as you’ve heard, we delivered strong results in the second quarter, including generating durable organic revenue growth and organic operating margin expansion year-over-year. Here are a few highlights.

Total revenue grew 22% in dollars and 23% in constant currency. Excluding Salesforce.org, our total revenue grew 20% in dollars and 21% in constant currency. CRPO grew 23% in dollars and 25% in constant currency. And we continue to put up solid organic revenue growth across each of our clouds, and in our geographies. There are few moving parts for Q2 results, so let me take it through some of the additional details, starting with revenue.

Total revenue for the second quarter was $3.997 billion, including $54 million of acquisition of Salesforce.org. Just as we saw in Q1, we continue to experience FX headwinds to revenue in the second quarter of approximately $34 million year-over-year and approximately $20 million sequentially. Looking at the drivers of growth by cloud, we continue to see strong subscription and support revenue growth year-over-year with Sales Cloud growth of 13%, Service Cloud growth of 22%, Marketing and Commerce Cloud growth at 36%, and Platform and Other 28%, which primarily includes a $159 million of MuleSoft. Approximately 54% of MuleSoft subscription and support revenue is treated as term license.

Let me call out a few other items related to the various cloud growth rates in the quarter. First, the FX headwind of a total — for total revenue that I mentioned earlier, represents approximately 1 percentage point of growth year-over-year. And that affected each of our clouds on a similar proportional basis. Second, our acquisition of Salesforce.org represented approximately 1 to 2 percentage points of growth year-over-year across each of our clouds. Third, this was the first quarter of a normalized year-over-year compared with MuleSoft. So with MuleSoft now in the base period, the rate of growth platform and other moderated in Q1 to Q2 as expected.

Adjusted for these items, we were very pleased to deliver robust organic constant currency revenue growth across each of our clouds in Q2. Attrition also remained healthy in Q2, as we have seen over the past several quarters, with dollar attrition continuing to decline modestly year-over-year, remaining below 10%.

Turning to operating margin. Q2 non-GAAP operating margin was 14.3%, down 349 basis points year-over-year. As a reminder, our Q2 operating margin and EPS results were affected by the settlement of our reseller agreement with Salesforce.org. This one-time non-cash accounting charge of $166 million as reported as a discrete line item on the statement of income and was slightly lower than we anticipated. We continue with our efforts to improve our operating efficiencies, and we’re pleased to deliver Q2 non-GAAP operating margin improvement excluding the Salesforce.org non-cash accounting charge of approximately 66 basis points year-over-year.

Q2 GAAP EPS was $0.11 and non-GAAP EPS was $0.66. In Q2, below the line mark-to-market adjustments, benefited GAAP EPS in the second quarter by approximately $0.10, and non-GAAP EPS by approximately $0.11. Business out-performance in the quarter, along with the lower than anticipated Salesforce.org settlement charge benefited GAAP and non-GAAP EPS by approximately $0.08.

Turning to cash flow. Second quarter operating cash flow was $436 million, down 5% year-over-year. Operating cash flow in the quarter was impacted by our recent M&A activity, as well as continued FX headwind. On a trailing 12 month basis, we are pleased to deliver operating cash flow of 25%. Capex for the quarter was $178 million, leading to free cash flow defined as operating cash flow less capex of $258 million, down 10% over last year.

On a trailing 12 month basis, we’re pleased to deliver free cash flow growth of 26%. Remaining performance obligation ended the second quarter to approximately $25.3 billion, up 20% versus last year. Current RPO, which is approximately $12.1 billion was up 23% year-over-year and on a constant currency basis was up 25%. Salesforce.org contributed approximately $200 million to this amount.

Now, turning to Q3 and FY ’20 guidance. We’re pleased to be raising our full year FY ’20 revenue to $16.75 billion to $16.90 billion for a full-year growth of approximately 26% to 27%. This guidance includes approximately $550 million to $600 million of revenue from our acquisition of Tableau, approximately $200 million in revenue from the acquisition of Salesforce.org, and approximately $25 million in revenue from Click Software. Excluding these acquired businesses, we expect top-line revenue growth of 22% to 21% year-over-year. This outlook reflects approximately $200 million in FX headwind for the full year.

Turning to our outlook for operating margins, we now expect FY ’20 non-GAAP operating margins to be down approximately 50 basis points year-over-year. Our FY ’20 non-GAAP operating margin guide is the result of several factors. First is the one-time non-cash settlement charge of $166 million related to Salesforce.org reseller agreement. Second is the blended margin profile of the recently acquired businesses, namely Salesforce.org and Tableau, which we anticipate at roughly breakeven non-GAAP margins for FY ’20 inclusive of the purchase accounting, and Click Software, which is modestly dilutive along with the associated transaction cost.

In fact, excluding the impact of these acquisitions this year, we expect our FY ’20 non-GAAP operating margin improvement year-over-year to be more than 150 basis points, which is higher than the improvement we initially laid out at the beginning of the year. For EPS, we’re updating our FY ’20 GAAP diluted EPS of $0.28 to $0.30, and our non-GAAP diluted EPS of $2.82 to $2.84.

For operating cash flow, we’re pleased to be maintaining our FY ’20 operating cash flow guidance of 21% to 22%, despite the increased expenses from recent M&A and the cash impact of FX headwinds. For Q3, we expect revenue in the range of $4.44 billion to $4.45 billion or 31% growth year-over-year. This guidance assumes revenue of approximately $300 million from Tableau and approximately $75 million from Salesforce.org. We also expect Q3 GAAP diluted loss per share of $0.21 to $0.20, and non-GAAP diluted EPS of $0.65 to $0.66.

We expect CRPO growth of approximately 24% to 25% year-over-year in the third quarter. This guidance assumes around 2 points of growth from Salesforce.org, and 2 to 3 points of growth from Tableau. Click Software does not have a material impact on our CRPO growth. And excluding this acquired CRPO, we anticipate that our CRPO growth would be approximately 20% year-over-year.

Lastly, regarding our long-term FY ’23 revenue target, we continue to be on track for this and to achieve our long-term revenue goals on an organic basis. And as previously discussed, we plan to update these targets, factoring in recent acquisitions during our Annual Analyst Day at Dreamforce in November.

To close, we delivered another strong quarter of durable revenue growth and organic margin expansion. We continue to invest to full proof — future proof our technology, and scale of our business globally. And I’d like to thank our employees, our customers, our partners and our shareholders for your continued support.

And with that, I’d like to open up the call for questions.

Questions and Answers:

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Operator” data-reactid=”95″>Operator

Thank you , sir. [Operator Instructions] And our first question will come from line of Mark Murphy with J.P. Morgan. Your line is now open.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Mark Murphy — J.P. Morgan Securities — Analyst” data-reactid=”97″>Mark Murphy — J.P. Morgan Securities — Analyst

Yes. Thank you very much. Congrats on a superb quarter. Marc, I wanted to ask you, we’re witnessing such a bifurcation in the retailers’ results this year. We’ve seen companies like Target and Walmart, and Home Depot doing well, and at the same time, it seems like Amazon is hurting some of the others, whether it’d be Sears, or Barnes, or Nordstrom, or the Gap or others. I’m wondering if you’re finding the retailers that adopted Demandware are actually competing better. And then — and just — is this retail apocalypse kind of causing companies in other industries Q1 to adopt Salesforce a little faster, so that they don’t get Amazon or uberized?

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Marc Benioff — Chairman and co-Chief Executive Officer” data-reactid=”99″>Marc Benioff — Chairman and co-Chief Executive Officer

Well, thanks so much for that question. I’ll tell you that I think that we are rapidly heading toward this fourth industrial revolution. In that this digital transformation is hitting every industry, and retail certainly is one of the major industries that has really been taken the stand and deliver. And you are seeing a bifurcation between those organizations who are ready for this transformation and those who aren’t. It includes not just the ability to have a strong digital presence, but also being able to understand what your strength is in regards to your physical presence. And making in those to work together in a synergistic way, well, that is where the magic is. For many of the organizations that you mentioned, I work with a lot of those CEOs personally and I can tell you that they’ve done a tremendous job.

You mentioned Target, I mean, you just have to go and see what they’ve done online is matched as well as what they’ve done in the physical store. I think that that’s kind of an indication of where the future is going. You didn’t see of course Amazon moving into the physical world as well. We’ve seen tremendous success with our own e-commerce platform. We’re very excited with Demandware. And some of the customers that we’ve seen on that platform really just trounce their competitors. Of course, there is a lot of good examples, the [Indecipherable] is one, but there’s so many others. And every one of these companies needs a strong platform like Demandware. But I will tell you, it’s more of the math. It means that they have a real Customer 360 because once that customer actually gets to the store, you want to know everything about them in terms of a 360 experience.

And we have a number of luxury retailers, some that I can mention by name, but honestly, a lot of them, so I just cannot by their own request who have done a tremendous job of integrating their digital experience in their physical experience. And when you walk into one of their stores, they say to you, oh, — hey, did you know we have this new capability or that new capability where you purchase something in this product line, and it’s made a big difference for them.

So you’re 100% right, the transformation in retail is under way and we’re excited to offer that Customer 360 vision to the top retailers, so that they can offer, whether it’s in sales or service or as you mentioned, e-commerce or marketing or app development or so many other things, the ability to be competitive. Thanks for the question.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Operator” data-reactid=”104″>Operator

Thank you. And our next question will come from the line of Heather Bellini with Goldman Sachs. Your line is now open.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Heather Bellini — Goldman Sachs — Analyst” data-reactid=”106″>Heather Bellini — Goldman Sachs — Analyst

Great. Thank you so much. I mean, Marc, you’ve been one of the most strategic visionaries in the software market over the last two decades. And obviously you built one of the biggest cloud companies to date through a combination of internal R&D and M&A. And I guess that’s where my questions would lie. Can you share with us your vision for M&A as you look ahead, and how you think, especially now that you’ve kind of gotten into the on-premise market as well, how you think about the marriage of the — you’re — the cloud footprint in the on-premise footprint?

And I guess, the other question that we get asked a lot about, and I’m sure others do on the line is, how do you think about the margin trade off that’s come with that bigger TAM? And given Mark Hawkins talked about it on the call, the fiscal ’23 target there — are there any thoughts of maybe ever adding a margin target to the value, it’s an inorganic number. So I guess that — that’s where my focus is. Thank you very much for taking the questions.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Marc Benioff — Chairman and co-Chief Executive Officer” data-reactid=”109″>Marc Benioff — Chairman and co-Chief Executive Officer

Well, thanks Heather. And I’m going to — I’ll let Mark directly address the issues of guidance. But I’ll tell you that, the way we look at it as innovation is happening everywhere, and we have tremendous innovation happen been in the Salesforce, and that’s been so important for us over the last 21 years. But we are also in all of — a lot of other innovation that’s happening outside of our Company, and we’ve been fortunate to have a big enough view of innovation that it’s motivated us to be one of the most innovative companies in the world because we have the hardest both organic and inorganic innovation, I think in a really positive way.

And I have to also thank our customers because a lot of the ideas that we have created whether it’s software, we’ve — software we’ve built our companies we’ve bought, it’s really been driven by those customers. I mean, a great example just tying back to the last call is Demandware one of those luxury retailers is based in Paris, I was having a meeting with them, and they took me aside and they said, you know the company that you should acquire is Demandware, and here’s why. They had already moved to Salesforce and other services and — but they had a gap in their Customer 360 and they wanted our ability to be able to connect Demandware into what we were doing, so that they could have, be more competitive themselves.

And that has turned out to be really great for them, and augmented our vision of what CRM is and also being able to execute our Customer 360 vision. I think that when I look out and I just was thinking about conversations that I had today, we’re really at a moment in time where these C — top CEOs in the world all realize not only do their digital transformation has to be under way, their customer experience has to be first.

And I’ll let Mark answer the rest of the question.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Mark Hawkins — President and Chief Financial Officer” data-reactid=”114″>Mark Hawkins — President and Chief Financial Officer

Sure. Thank you, Marc, and thank you, Heather for the question. We certainly highly prize the operating margin expansion. It’s something that’s very important to us. Over time as you can see over the last several years we’ve been expanding that. We do make trade-offs between our organic growth and margin. The trade-offs are something that we always look at when we look at this opportunity to serve the customer.

We have been making considerable progress over the years, but we know there is more work to be done. And that’s something that we’re always thinking about and trying to focus on constantly improving. We’re certainly going to be talking about that in February when we’ll give out our operating margin targets. And I hear your point about exploring beyond one year, but certainly we’ll be talking about the operating margin in February.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Operator” data-reactid=”117″>Operator

Thank you. And our next questions will come from the line of Kash Rangan with Bank of America. Your line is now open.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Kash Rangan — Bank of America Merrill Lynch — Analyst” data-reactid=”119″>Kash Rangan — Bank of America Merrill Lynch — Analyst

Hi. Thank you very much. I’d like to first applaud the Company for the tremendous amount of clarity and the straightforwardness as you — how you report your financials, such as the organic versus the acquired — the currency impact. You go through excruciating detail to make it abundantly clear how your core business is doing , particularly the fact that margins are projected to grow excluding the acquisitions, more than you anticipated. So I just want to give you a round of applause on the clarity and straightforwardness of the disclosure.

Now, the question for you, Marc, as you move ahead, you’re targeting a $28 plus billion dollar revenue company. With the diversity of end markets that we’ve just simply not seen in software, the prior analogs and the on-prem with SAP or Oracle. Just didn’t quite have the diversity of end markets that Salesforce.com is pursuing. So as you plan to roughly double revenues, how does the go-to-market nature of how you’re going, how does the go-to-market strategy evolved as you had talked a breadth and complexity of markets that the word has simply just not seen, and there’s no recipe to follow?

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Marc Benioff — Chairman and co-Chief Executive Officer” data-reactid=”122″>Marc Benioff — Chairman and co-Chief Executive Officer

Well, let me fill in some of it, but then also let me ask Keith really to fill in the rest. I think you said it really well, which is that we’ve worked really hard to build this Customer 360 platform. It’s taken us 21 years. And it turns out, this is exactly what customers want and really need to be competitive in today’s world. And as we go to now execute and deliver that, we are focused on how do we do that by region, by country where we’re really looking at how we’re doing that by segment, it’s extremely important.

And I think that for us, certainly we started just with Salesforce automation, that was our soul app, if you will. But it was clear from a focus to cut with customers that if we’re going to continue to build serve them, we had to get to customer — to a Customer 360.

So Bret, maybe you also want to add to that. And then Keith, I think maybe it’d be great if you build on, on the go-to market as well.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Bret Taylor — President and Chief Product Officer” data-reactid=”126″>Bret Taylor — President and Chief Product Officer

Yes. I think, Marc, you put it well, which is, as we think about our value proposition, it spans a lot of different markets, but it’s all under this umbrella of digital transformation. And I think the defining characteristic of companies in the fourth industrial revolution is the things driving the digital investment is customer experience. Customers are demanding that their interact with these companies in new ways, and that does span the entire portfolio.

The question that came up earlier about Demandware and Commerce, so a lot more than that. When you think about what it defines your retail experience, it’s about customer service. It’s about buying online and picking up in store. It’s about merging the physical on the digital. And it’s about how you get recommendations and marketing after you purchase something.

And so when I look at our portfolio, it spans wide breadth of functionality. But when I talk to the CEOs of all the major companies in the world, that’s what they need to transform it all of the above. And when they fragment their customer experience by thinking of them as separate categories or siloed, they can actually achieve the vision of the digital native companies that you mentioned before. So I think our breadth as an asset when we go into these conversations with our customers because I think we can provide a more complete vision for their digital transformation in the other company.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Keith Block — co-Chief Executive Officer” data-reactid=”130″>Keith Block — co-Chief Executive Officer

Yes. And listen, on the go-to-market side, we made a conscious decision over the last few years to really focus on three things. One is, how do you take a international company and turn it into a global company. And there is a large difference between being an international company and being a global company, a lot of that is around culture behavior and how you solve customer problems.

The second was really a movement toward selling solutions and speaking the language of the customer, and understanding an industry. And just to give you an example of that, in two weeks, I have to go to New York, which I’m very, very happy about to address the Board of one of the — would say the most prestigious retailers in North America, and talk about the future of retail. A couple of weeks ago, I had dinner with the CEO of a different company, although same industry, but it’s one of the largest retailers in the world, and they want to talk about how our Customer 360 platform can help them drive growth and optimize customer experience.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Kash Rangan — Bank of America Merrill Lynch — Analyst” data-reactid=”133″>Kash Rangan — Bank of America Merrill Lynch — Analyst

Yes.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Keith Block — co-Chief Executive Officer” data-reactid=”135″>Keith Block — co-Chief Executive Officer

So being able to understand the industry and enabling our field organizations and our entire Company on understanding an industry and being able to solve the customer problem is a huge part of it.

The third piece of this is moving from a partner ecosystem to a strategic ecosystem. And part of ecosystem is really encompassing with our classic firms that we do business with, like the Accenture and the PwC, and the Deloitte to the world, who are just well processed, but how do we extend that community to drive success for our customers everywhere in the world. And that’s why we form partnerships with companies like Ali Baba because we have to service companies all over the world, so we have global operations. Again, I mentioned the word global.

It also means that we continue to invest in this Trailblazer community., where we want millions of people who evangelize and architect solutions that drive success for our customers. And then the final component, which I mentioned on the call is talent. We are fortunate enough because of our culture and the type of company in and our values to be a destination company for Talent. And we have attracted some amazing people whose careers we continue to grow, who are very focused on customer success, as well as these other folks like we talked about with the Jayne-Anne Gadhia, for example, who is going to be running the UK eye. for us.

And having those executives, having that talent in place, we’re passionate about customer success. And driving solution really makes us I think a very, very unique Company and that’s why you see the success and that’s why we’re optimistic about the future.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Operator” data-reactid=”140″>Operator

Thank you. And our next question will come from the line of Walter Pritchard with Citigroup. Your line is now open.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Walter Pritchard — Analyst — Citigroup Global Markets, Inc.” data-reactid=”142″>Walter Pritchard — Analyst — Citigroup Global Markets, Inc.

Hi. Thanks. A question for Mark Hawkins or for Keith Block. I think it’s been a couple of years back, you gave framework around cost to serve at Dreamforce Analyst Day. And I’m wondering, you are talking about seeing really good underlying margin progression in the business ex-acquisition. Could you update us one one of the lines of those two drivers, where you’re seeing the margin improvement, which — it’s a little bit harder for us to tell given the acquisition influence on each of the opex and cost of revenue line items, that’ll be helpful.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Mark Hawkins — President and Chief Financial Officer” data-reactid=”144″>Mark Hawkins — President and Chief Financial Officer

Sure. Well, first of all, thank you Walter, and I’m happy to do that. I think the thing that we are making progress on right now is in the area of gross margin. You will take note, we’ve been investing for quite some time to get more scale and capabilities there. And we’re pleased to see some progress on that. We’re getting also progress in our G&A areas as we look to make G&A more efficient as we scale up the Company. And that’s certainly an area that we’re making progress as well. We have a great initiative. I think our team driving even customer success there in it to really help deliver an even better performance, while also scaling. And I think these are some of the areas in the [Indecipherable] particular that we’re doing.

And Walter, I would add, just one additional point in there at the cost of book, that’s always a choice, since always a trade-off. And we just have a great market opportunity in front of us to serve our customer. And we’re obviously investing there, but always looking for progress as well. But those other areas are the key areas that we’re focused on.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Walter Pritchard — Analyst — Citigroup Global Markets, Inc.” data-reactid=”147″>Walter Pritchard — Analyst — Citigroup Global Markets, Inc.

Okay. Thank you.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Mark Hawkins — President and Chief Financial Officer” data-reactid=”149″>Mark Hawkins — President and Chief Financial Officer

You’re welcome.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Operator” data-reactid=”151″>Operator

Thank you. And our next question will come from the line of Keith Weiss with Morgan Stanley. Your line is now open.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Keith Weiss — Morgan Stanley — Analyst” data-reactid=”153″>Keith Weiss — Morgan Stanley — Analyst

Hey, guys, thank you for taking the question, and very nice quarter. I wanted to get key processing on or perspective on potential synergies from the recent acquisitions, particularly Tableau. Given the success you guys have seen with MuleSoft over the past year, where should we expect sort of the biggest synergies? What are you most excited about in terms of adding Tableau, and maybe we could put Click Software into there as well into the portfolio as we look over the next year?

And then one for Mark Hawkins. Can you repeat the the Tableau guidance again in terms of what the full-year contribution is and what the Q3 contribution is? Because it seems like it implies like a smaller Q4 than a Q3. I want to make sure I have those numbers right.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Marc Benioff — Chairman and co-Chief Executive Officer” data-reactid=”156″>Marc Benioff — Chairman and co-Chief Executive Officer

Let me address — hi, Keith. Let me address the first part of this and then I’ll ask Mark Hawkins to comment as well. So look, we’re incredibly excited about Tableau. It is a — it’s a great company, a set of great products. It’s got an incredible development community. It’s got a great executive team. And customers love their product. As far as Click Software, and I’ll let Mark talk about in Tableau in a second, but as far as Click Software, we’re very, very excited about the Click Software acquisition. As you may know, field service is incredibly strategic to a number of industries, such as utilities, telecommunications, equipment manufacturers. And we have a very strong product in field service lighting. And the combination of field service lightening which grew a 100% by the way, year-over-year in the quarter and Click Software is very, very compelling.

So that’s a great example of marrying innovation organically and inorganically. So we’re super excited about that.

And Mark, I know you have some comments, specifically on the Tableau.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Mark Hawkins — President and Chief Financial Officer” data-reactid=”160″>Mark Hawkins — President and Chief Financial Officer

Yes, I do. In fact, — and let me take the numbers first, and we’ll talk about the synergy secondly. First of all, Keith, I just want to call out for the year as it relates to Tableau, we’re anticipating a $550 million to $600 million contribution for the year. Of course, that’s net of the the [Indecipherable] down. Number one.

Number two, for the quarter, for Tableau, I just want to reiterate that we’re looking at $300 million and the Q3 time period, again, net of the [Indecipherable] writedown. That’s the first part of your question. The second part of your question has to do with synergies. And I just would call out and say that look, we’re incredibly excited, but as discussed at the beginning of the call, we’re running the companies separately right now as operating independently right now, it’s an incredible company with a fantastic product and leadership team. We’re so pleased about that and so excited about that.

But let me take a step back and address the spirit of your question. We have a tremendous history with acquisitions of complementing our organic innovation and being able to make progress in that way. And when we do M&A, we’re always looking for opportunities to make these companies even better and have even greater success for our customers, which is what it’s all about at the end of the day. So I’ve never been more excited about our ability to create more success for our customers, that with the strategy, that’s what I would say.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Operator” data-reactid=”164″>Operator

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

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Kirk Materne — Evercore ISI — Analyst” data-reactid=”166″>Kirk Materne — Evercore ISI — Analyst

Thanks very much and congratulations on the quarter. My question might be for either Keith and Marc Benioff. I was wondering if you guys could just talk about Europe a little bit. It’s obviously been a real source of strength for year over the last few quarters. Just where is the market I think broadly just in terms of adoption and thinking about things like Customer 360, it seems like it’s hitting a little bit of an inflection point, and would just love your thoughts on that. Thanks.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Keith Block — co-Chief Executive Officer” data-reactid=”168″>Keith Block — co-Chief Executive Officer

Yes. So Marc and I have initially been flying around the world quite a bit. I spent about a four-week trip where I was in Japan, I was in the United States, I was in Canada, I was in the U.K., and Switzerland, and France, and Italy and meeting with CEOs from various industries in those geographies. You can see from the results, EMEA continues to be very, very strong for us with 30% growth in the quarter.

And just go back to the unit credits situation that I mentioned in the earnings call, this is a very strong Bank in Italy. I think we’re aware of situation that’s going on in Italy from a macro perspective, from a government perspective. But the CEO of UniCredit is really betting the future of UniCredit around the Customer 360 initiative and the experience for his customers that he wants, and how we want to transform that bank. And that is the same conversation that is going on in every industry. I was in Paris meeting with one of the largest bank CEOs in the world, you know the Barclays story that we have in the U.K., we have industrial manufacturers in Germany, automotive manufacturers who were trying to improve the customer experience and driving 360 degree. So the one thing that is very, very clear to me is that whatever is going on around the world, we see a buying environment, we see CEOs investing. And top of mind for them is digital transformation, which begins and ends with the customer, and that’s why they’re talking to us, and that’s why you’re seeing these results.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Operator” data-reactid=”171″>Operator

Thank you. And our next question will come from line of Richard Davis with Canaccord. Your line is now open.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Richard Davis — Canaccord Genuity — Analyst” data-reactid=”173″>Richard Davis — Canaccord Genuity — Analyst

Hey, thanks. So maybe a technology question. So I saw that you guys — Gartner ranked you guys — Salesforce as a leader in low-code. And in addition, you’re doing really well and decision support with Einstein. And then the other third area that’s really hot these days is this whole robotic process automation. So the question I have maybe for Marc is because you think about these things is, how do you see Salesforce participating in each of those three markets, because it sure seems to me that those three technologies are going to have to work closer with each other over time because I just feel like they’re going to intersect. And so how does Salesforce position itself for that kind of next wave of those three things kind of connecting with each other? Thanks.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Marc Benioff — Chairman and co-Chief Executive Officer” data-reactid=”175″>Marc Benioff — Chairman and co-Chief Executive Officer

Well, I’m going to actually ask Bret to answer the question. I mean I think it’s perfectly set up for him to to deliver. So Bret, do you want to hit it?

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Bret Taylor — President and Chief Product Officer” data-reactid=”177″>Bret Taylor — President and Chief Product Officer

Yes, absolutely. This is really our vision for the Customer 360 platform, which is a platform that works together with all these technologies that’s accessible to all of our Trailblazers. And when we talk a lot about Trailhead and we talk about this vision of low-code, that’s what we mean. The 1.5 million people earning 15 million badges are learning how to apply these advanced technologies. And the technologies, you mentioned in the first half of this year alone, the capabilities we’ve added this platform are incredible. We added the Salesforce Blockchain. We added Salesforce Maps. We added Einstein Translation, Einstein Voice, Einstein Vision. We’ve added all these capabilities and they’re accessible to everyone on our platform in the low-code way. And what that means for our customers is, it’s easy for them to leverage these technologies to improve their customer experience.

And all those technologies you mentioned, the challenges that we hear in the market is, these customers are excited about this new technologies and what they can do the customer experience. But it’s often cost prohibitive or too complex to do so. And that’s the value they see in our Customer 360 platform. That’s why, as Marc mentioned, Salesforce is the number 2 most appealing job working environment [Phonetic] Glassdoor. And in the first half of this year alone, over 72,000 new job postings for Salesforce jobs were posted on just the top two job sites. You’re seeing the draw of this platform, and you’re seeing how empowered it is for — I think anyone in the world can become a Salesforce developer. You could if you go and fill out after this call.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Operator” data-reactid=”180″>Operator

Thank you. And our next question will come from the line of Brad Zelnick with Credit Suisse. Your line is now open.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Brad Zelnick — Credit Suisse — Analyst” data-reactid=”182″>Brad Zelnick — Credit Suisse — Analyst

Thanks so much and congrats again on a fantastic quarter. After this question out up for grabs and it’s really just to dig in a little bit deeper on Service Cloud with the reacceleration this quarter, just wondering if you could help unpack that a little bit. You called out field service lightening strength in your prepared remarks, but I’d love to hear any additional color in terms of competition, win rates and also how you see the products coming together with Click Software coming into the fold. Thanks.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Marc Benioff — Chairman and co-Chief Executive Officer” data-reactid=”184″>Marc Benioff — Chairman and co-Chief Executive Officer

Why don’t I take that and then I think Bret will want to weigh-in as well from the product strategy perspective, OK. This way, the digital transformation is really fueled by so many things, right. The foundation of it is the 360 degree view of the customer. And in each of the elements of that 360 degree view of the customer important, whether it’s relative to the use case and the problem that you’re trying to solve, whether it’s sales or service or marketing or commerce.

And service is just very powerful. If you look at companies in a variety of industries, they like to differentiate themselves by service, and customer experience is a big component of that and field services, a big component of that. So as we talk to these executives about the future of growth, you can’t have growth without a great customer experience, and that starts with service. So Bret, I’m sure you want to add to that as well.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Bret Taylor — President and Chief Product Officer” data-reactid=”187″>Bret Taylor — President and Chief Product Officer

Yes. I just all had I do think that our customers are driving us here because service defines their brands, but also [Indecipherable] power of this Customer 360 platform because all of these fundamental technology innovations we’re investing in really I think benefit service in unique way, and obviously with Einstein Bots, which enable customers to provide front line support using AI. This past quarter, we added Einstein Case Routing. So we can route, support cases to people who have the best skills to provide the best customer experience at the right time.

You saw the growth in field service, which we’re really proud of. It really shows how our investment in Maps and geolocation and mobility are all sort of converging to enable these customers to provide the right support to the right customers wherever they happen to be. And so, I really want to say that this is really what I view of the power of the platform. We’re getting so much leverage in our technology investments to enable the experiences that Keith talked about.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Operator” data-reactid=”190″>Operator

Thank you. And our last question will come from the line of Jennifer Lowe with UBS. Your line is now open.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Jennifer Lowe — UBS Securities — Analyst” data-reactid=”192″>Jennifer Lowe — UBS Securities — Analyst

Great. Thank you. I wanted to circle back on some of the discussion earlier about going from an international company to a global company, and the addition of CEOs in a couple of — particularly strategic markets. And I’m curious as you add that role, what sort of the mandate there? What do you view as sort of core competencies that need to be set by global leadership versus providing regional leadership with the flexibility to make the changes or run the business in a way that they see as most appropriate on the ground in that market?

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Marc Benioff — Chairman and co-Chief Executive Officer” data-reactid=”194″>Marc Benioff — Chairman and co-Chief Executive Officer

Well, Jennifer, one of the important things of being a global company is to be able to think globally and things strategically and act locally. And we want to empower our leaders in the field, so that they can make decisions on behalf of the customers in front of the customers. There is an expression that says the best decisions are not made in the office, they’re made out in the field. And by hiring these senior executives and cultivating and growing our other executives inside the Company, so that they are empowered to make these decisions, we think this is a perfect way to scale and Company.

With respect to being a global company versus an international company, kind of the key tenet of being a global company, is that you act the same, you behave the same, you execute the same no matter where you are all over the world, whether it’s with one customer or many customers. And as we bring in these senior executives, we’re augmenting and enhancing an already incredible management team. So we’re super excited about these adds and challenges and important strategy for the future.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Operator” data-reactid=”197″>Operator

Thank you. Ladies and gentlemen, this concludes our question-and-answer session for today. I would now hand the call back over to the Company, for any closing comments or remarks.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Marc Benioff — Chairman and co-Chief Executive Officer” data-reactid=”199″>Marc Benioff — Chairman and co-Chief Executive Officer

Great. Thank you, everybody for participating in the call today. And I especially want to thank all of our Ohana, who just did a fantastic job this quarter, and we couldn’t be more pleased with the outcome. And John?

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="John Cummings — Senior Vice President, Investor Relations” data-reactid=”201″>John Cummings — Senior Vice President, Investor Relations

Yes. Thanks so much. Thanks so much, Marc. And thanks everyone for joining us today. As Marc reminded everyone, go ahead and register for Dreamforce. We’ll look forward to seeing many of you there at our Annual Analyst Day. And we’ll look forward to giving you an update on our results in Q3. Thank you so much.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Operator” data-reactid=”203″>Operator

[Operator Closing Remarks]

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Duration: 56 minutes” data-reactid=”205″>Duration: 56 minutes

Call participants:

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="John Cummings — Senior Vice President, Investor Relations” data-reactid=”207″>John Cummings — Senior Vice President, Investor Relations

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Marc Benioff — Chairman and co-Chief Executive Officer” data-reactid=”208″>Marc Benioff — Chairman and co-Chief Executive Officer

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Keith Block — co-Chief Executive Officer” data-reactid=”209″>Keith Block — co-Chief Executive Officer

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Mark Hawkins — President and Chief Financial Officer” data-reactid=”210″>Mark Hawkins — President and Chief Financial Officer

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Bret Taylor — President and Chief Product Officer” data-reactid=”211″>Bret Taylor — President and Chief Product Officer

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Mark Murphy — J.P. Morgan Securities — Analyst” data-reactid=”212″>Mark Murphy — J.P. Morgan Securities — Analyst

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Heather Bellini — Goldman Sachs — Analyst” data-reactid=”213″>Heather Bellini — Goldman Sachs — Analyst

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Kash Rangan — Bank of America Merrill Lynch — Analyst” data-reactid=”214″>Kash Rangan — Bank of America Merrill Lynch — Analyst

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Walter Pritchard — Analyst — Citigroup Global Markets, Inc.” data-reactid=”215″>Walter Pritchard — Analyst — Citigroup Global Markets, Inc.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Keith Weiss — Morgan Stanley — Analyst” data-reactid=”216″>Keith Weiss — Morgan Stanley — Analyst

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Kirk Materne — Evercore ISI — Analyst” data-reactid=”217″>Kirk Materne — Evercore ISI — Analyst

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Richard Davis — Canaccord Genuity — Analyst” data-reactid=”218″>Richard Davis — Canaccord Genuity — Analyst

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Brad Zelnick — Credit Suisse — Analyst” data-reactid=”219″>Brad Zelnick — Credit Suisse — Analyst

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Jennifer Lowe — UBS Securities — Analyst” data-reactid=”220″>Jennifer Lowe — UBS Securities — Analyst

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="More CRM analysis” data-reactid=”221″>More CRM analysis

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