Q4 2021 Salesforce.Com Inc Earnings Call
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Thank you Andrew.
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Tom.
Ladies and gentlemen, Mr. Scherr Operator, today's conference is scheduled to begin momentarily until that time. Your line will again be placed on music hold thank you for your patience.
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John.
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Murray.
Volume three.
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Mark.
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David.
John.
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David.
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Steve.
Bill.
The future is now.
Keith.
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Peter.
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Yes.
Welcome to the sales force fiscal 2021 fourth quarter results conference call.
At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. Please press star one on your telephone keypad.
<unk> further assistance please press star zero.
I'd now like to turn the call over to your speaker today, Mr. Evan Goldstein Senior Vice President of Investor Relations You May go ahead.
Take a picture.
Michelle Hello, everyone and thanks for joining us for our fiscal 'twenty, one fourth quarter on full year results conference call on Evan Goldstein Senior Vice President of Investor Relations. Our results press release, SEC filings and a replay of today's call can be found on our IR website at www Dot Salesforce Dot com investor.
With me on the call today is Marc Benioff, Chairman and CEO, Jamie Bieber, President and CFO, Bret Taylor, President and COO, and Gavin Patterson, President and Chief revenue Officer.
As a reminder, our commentary today will primarily be on non-GAAP terms reconciliations between our GAAP and non-GAAP results and guidance can be found on our earnings press release.
Some of our comments today may contain forward looking statements that are subject to risks uncertainties and assumptions in particular, our expectations around the impacts of the Covid mentioned comes on it on our business acquisitions and results of operations and financial condition and that of our customers on partners.
Certain and subject to change should any of these materialize or should our assumptions prove to be incorrect actual company results could differ materially from these forward looking statements.
Scripture of these risks uncertainties assumptions and other factors that could affect our financial results is included in our SEC filings, including our most recent report on form 10-K with that let me hand on the call Tomorrow.
Yes.
Alright, well, thank you very much Evan and thank you everybody for being on the call today, it's great to be here and I hope everyone's families are safe and healthy.
Through the magic of <unk>.
<unk>, our test Steve made possible by visiting medical here in the Bay area.
Through mass safe distancing and being outside hands, a gorgeous San Francisco day, I am here together sitting at the table with Amy Weaver, our Chief Financial Officer, and Bret Taylor, Our Chief operating Officer, Gavin Patterson, our Chief revenue Officer, Evan and Mark Hawkins.
Our CFO ameritox.
It's great to be here with everybody.
And.
We haven't really done on outside conference call before but welcome to the new pandemic World that we are in and we're going to make this work.
So this is a reminder.
We are definitely on a new place.
We can see the beginning of a return to our offices in fact, I wasn't on Salesforce tower yesterday and Hell Dara.
Mobile all hands call, we can see a return to restaurants to.
Maybe even the sports arenas in the concerts, one day, who knows where we're getting closer with <unk>.
All of the advancements in technology.
But the reality is that even with the vaccines were not really back to the way it was and I was the only one in the Ohio, Florida Salesforce tower and.
We can all I think agree that this pandemic has forever changed our world.
And how we are working in.
On living and educating ourselves.
From anywhere.
Our sales force futures, Peter Schwartz, who many of you know probably said it recently to meet best when he said, we're just in a new pandemic world.
As this is going to evolve and shift, though we don't know exactly but we're going to kind of make it work and that's the idea of being outside here doing on earnings call. It's an all digital its work from anywhere World, where every company and every earnings call. We have to be able to work sales service market collaborate and analyze our data.
From anywhere.
Sales force was somehow already built for this world before it existed.
And that's why over the last year sales force has become I think significantly more strategic and more relevant to our customers than probably any time before and today 22 years. After founding the sales force, we can see it right here that more and more companies around the globe are turning into sales force to deliver.
Success from anywhere and Thats why even the midst of the global pandemic, we had such an incredible year, an incredible quarter and you can see it in these incredible numbers and that by delivering success from anywhere on a revenue rose to more than $5 8 billion up 20% year over year truly amazing for a company of our XI.
<unk>.
And for the full fiscal year 'twenty, one revenue was 21 on a quarter billion dollars, which was up 24% year over year.
Based on this strong fiscal year 'twenty, one results, we're raising our fiscal year 'twenty two guidance to 25, and three quarters 1 billion, which is now at the high end of our range, representing 21% projected growth year over year, there's never been a software company over $20 billion in revenue that is growing as fast as we are and.
As we shared at our Investor day last year, our long term revenue target for the fiscal year 'twenty. Six is now $50 billion are basically we're going to double the company from where we are right now that is doubling revenue in five years and will reach that milestone faster than any other enterprise software company that would make sales.
Force the second largest independent software company in the World Amaze.
Amazing This is all really a testament to our employees and our customers and.
The technology and really this is amazing ecosystem of all of this together and the millions of Trailblazers, who are working from anywhere and pioneering success from anywhere I'm on.
So often asked.
How is it that we're able to succeed in such a difficult time and I will tell you sales force is accelerating et cetera rapid speed because we are already on this work from anywhere world. We're achieving success from anywhere for US success starts with our core values and for those of you who followed our company for a long time when these things happen.
When the world changes, we always pivot hard back to our core values and trust is our number one value theres never been a more important time when trust in government and other institutions well, we can see its been eroding and customers are seeking direct customer digital relationships and I think that as.
The World has evolved especially in last year. The acceleration of these direct b to B and B to C digital relationships for our customers, it's more important than ever before because we're in a world of all of this mistrust. So that is why this customer 360 platform is.
More important than ever and that's why it's so important and customer success, where we're helping our customers navigate the pandemic and achieve success from anywhere you can see that I'm going to talk in a second about some tremendous innovations with our vaccine cloud on our contact tracing capability and innovation, while you can see it we're innovating.
And well go faster than ever before developing these amazing new products and all of these incredible new technologies and a quality well, we're helping them.
Executing philanthropy and working together across all of these communities, especially our schools Tom.
Hospitals small businesses in the most vulnerable populations get through what have been some of these incredibly difficult times.
Our values have guided us as we've pivoted to this new pandemic world and like every year, we came into it with a business plan, but early on about a year ago. In fact, we knew that business plan was not going to hold together, we devised a whole new business operating model for how we run sales force and how we would succeed for many.
We call that our pandemic operating model, we've sharpened our relevance increased our levels of participation enabled our employees created new types of sales plays and I shared on our model with many Ceos that I've talked to over the last several months and now they are applying it to their own organizations on getting incredible new levels of performance out of it as well.
As we dialed into the model, we immediately saw our team's level a relevant participation enables skyrocket for example from Q2 to Q4, our own enterprise sales teams, even though they were at home use.
Our sales cloud to engage in more than 6 million conversations with customers acting on how we can be the most relevant and useful at the time of crisis. I don't think we would have survived as a business without our sales cloud. It was critical to bill those business to business relationships that are the essence of sales force because we had to do digitally.
And sales cloud enabled us to sell from anywhere and throughout the year. We helped other great companies that you've heard about like AT&T or or in severity or line or three am or so many others to do the same and we all of course, we all love getting on airplanes and flying somewhere in being in person with a customer, but it just hasn't been possible.
Now if you look at the magic of our marketing cloud well, we were able to create new digital experiences like Dream Force and I Hope all of you had the opportunity to experience Dream force, but we have the abilities of our marketing cloud to have those direct digital relationships at scale and instead of having 170000 people takeover San Francisco we had.
More than 140 million views of just Dream Force. That's amazing. We also created hundreds of other leadership events throughout the year for customers employees partners communities and that generated another 300 million 350 million views in the year customers like zoom like care.
For Humana and so many others also chose the marketing cloud to fuel their digital business growth as well.
And with service cloud well, we managed our own caseload has our business.
Continue to accelerate through the year as we moved our call centers and contact centers into our employees' homes with $4 8 billion interactions using our service cloud in the last quarter <unk>.
Customers in the year like gap and so knows even Uber eats who use service cloud the power success from their customers from anywhere.
Now as a customer of slack I can tell you. We're using service cloud was flat to improved performance, we've seen a 26% improvement in Pes times and close rates on 19% improvement in same day resolution. That's an example, where our acquisition of slack is made so much sense, we've seen the combination of products like service cloud on slack together.
Just make it so much better for us as a company or for our customers and we're looking forward to doing so much more of that.
Slack can be the central nervous system for any company connecting its people and data across systems apps and devices from anywhere it's really an enabler of success from anywhere and once our merger is approved but we're going to build slack.
Into more of these products that we have.
Have used today, and conceptualize and make our customers even more productive.
Going to create the most open and interoperable ecosystem of apps and workflow in enterprise software.
By achieving success with anywhere at sales force, we're delivering success from anywhere to our customers in many ways, we're becoming in the success from anywhere company, whether it's <unk> or <unk> to see our customers need to accelerate their efforts to go all digital to build direct trusted relationships with their customers and for so many.
Companies, it's a matter of their survival with a flexibility scale and time to value of customer 360, our customers are able to quickly adapt to this new world and on any given day, our customers are generating 3 million 3 million commerce cloud transactions, well, that's up 100% from a year ago Thats not a surprise to anybody.
I'll now where shopping from anywhere and creating 4 million sales opportunities working from anywhere there home a coffee shop Alan on top.
Or delivering an average of $2 9 billion marketing messages from anywhere across any digital channel logging nearly $5 billion case interactions servicing from anywhere.
Now Salesforce Einstein, which is their core artificial intelligence capability really built into the heart of customer 360, well, that's now delivering more than $93 billion.
93 billion AI powered predictions every single day 93 billion AI powered for predictions every single day across our entire customer 360 amazing.
Customer 360 makes all of our customer interaction smarter than ever before and it's a great example, like Salesforce has been ranked by IDC as the number one CRM for the seventh year in a row.
Just the fourth quarter. So companies are turning to sales force to build trusted relationships with their customers and deliver success from anywhere companies like I mentioned like a line or Telstra are Texans are marriott or RBC, our Sigma our sports United across so many industries across so many geographies.
As a company as large companies are small and medium companies, even brands like IQ via deluxe well they turned up Neil soft, which is critical to every digital transformation to connect to all of their legacy systems and connect that data from anywhere and of course right now delivering success from anywhere also mismanaged.
Gene the pandemic from anywhere by developing technology like contact tracing work dot com well you've seen on Salesforce dot com is at the forefront of helping organizations and governments feedback the pandemic or in the case of the state of Victoria in Australia.
Basically eradicated.
And with vaccine cloud, we're helping cities like New York or states like where I am right now on California, or other could even entire country scale of vaccine operations and debt vaccine shots on arms and I have to tell you I've just never seen.
Our logistics and information technology challenge like this before and our technology is working incredibly well and you've seen some other implementations of technology in this area well did not work well for these vaccines. So now we can see more than 50 federal state local and private health organizations are using salesforce.
To manage this incredible response to pandemic series like Austin, and Chicago, New York City, California, New Hampshire, Rhode Island, and then it really goes on and on.
More than 245 million people in fact have used co.
COVID-19 data through our tableau dashboards and thousands of organizations are relying on tableau as COVID-19 data hub, such as Verizon and UNC or UNICEF are experienced and you can check that added public debt tableau dot com or just go to tableau dot com and you'll see a whole tab just on their response to COVID-19.
That's been incredible what that what our team of tableau has done that.
Pandemic has shifted this all into this work from anywhere world, but assisted beginning of a whole new era.
Era and that's why we're so excited about what we have done on how we've transformed our own organization and our technology with hyper force.
Look we've built an incredible new platform you heard about it a dream force for the first time. This hyper force platform. This is a fundamental new architecture for us it lets us run on any hyper scaler hyper force allows us to run anywhere and that allows our customers to choose where they want to manage their data.
Allowed us to open incredible new data centers in India, and Germany, and we're planning to support another 10, new additional countries. This year and all built on this incredible new architecture, and it's 100% compatible with all of our previous implementations, which is another example of how well we're going to able to help our customers achieve.
For them anywhere now finally, when we are successful we have a responsibility to others. It means we can be living examples of stakeholder capitalism in action and it's why during the pandemic will accelerate our efforts to serve all stakeholders, including our communities and the planet.
Supported frontline workers and 300 hospitals around the world by delivering over 50 million pieces of PPE. We've provided millions of dollars on grants to schools to help with remote learning to local small businesses to stay afloat into organizations focused on racial justice has that turned into a crisis here on our.
United States and with Parker partnered with Gabby the vaccine alliance on equitable distribution of vaccines across the 190 countries I'm incredibly proud of our efforts to fight climate change and protect our planet. In fact, we are a net zero operations company today, and we've also reduced our carbon emissions by 40% on last year.
With our sustainability cloud companies across the globe are tracking on reducing their carbon emissions and keeping track of their critical ESG is we're supporting the global movement to conserve to restore and grow one trillion trees.
<unk> of the World Economic Forum, <unk> Dot Org initiative, and I'm very grateful for everyone, who has done so much to help this critical.
Part of climate change with sequestration, all of which shows why when we truly serve all stakeholders business is the greatest platform for change well, that's where sales force is today and where we're going it's a new business operating model work from anywhere direct trusted customer relationships.
You can see this incredible product line all built on this hyper force architecture, serving all stakeholders at how Salesforce is achieving success from anywhere.
And it's how we're enabling our customers to achieve success from anywhere I'm incredibly proud and grateful for lower while we've been able to accomplish in fiscal year 'twenty, one and I'm very proud of us even though we're freezing out here.
Yeah.
In San Francisco.
But we're outside of doing it safely involved in PCR tested it's all totally fine and now I'm turning it over to our new Chief Financial Officer, Amy Weaver Amy.
Thanks, Mark and I agree I.
Thank you Bill during my first call out until I die.
Bret this is great.
I'm thrilled to be here today in his new role I really enjoyed the opportunity to learn on many of our shareholders. During the transition period and I'm looking forward to now more on the investment community during fiscal 'twenty count.
It was as Mark described we closed out our fiscal 'twenty, one with another quarter of outstanding growth at scale and solid bottom line execution.
Yes, let me take you through the cemetery freeze on Q4 and kicked on 'twenty line I'll begin with top line commentary.
Total revenues for the fourth quarter, with 582 billion up 20% year over year or 19% in constant currency.
For fiscal 'twenty, one revenue was 20 125, kellyanne at 24% year over year in both dollars and constant currency.
A well rounded performance across geographies and product offering.
Revenue attrition in Q4 was between nine and nine 5%, which were slightly favorable versus our Q3 guidance assumption on.
Our continued focus on customer success has resulted an attrition rate that everything we had to scams each coronary since the onset of the pandemic.
However, our Q4 attrition rate is still higher than where we finished the year on comp.
Our remaining performance obligation representing all future revenue under contract ended Q4 at approximately $36, one gilead up 17% year over year.
Current remaining performance obligation or CRP out.
Which represents all future revenue under contract that is expected to be recognized as revenue in the next 12 months was approximately 18, Italian at 20% or 18% in constant currency.
Turning to operating margin in Q.
Q4, non-GAAP operating margin was 17 five pre Sac does this include $184 million real estate impairment charge as a reminder, our guidance for Q4 had assumed $80 million to $100 million and real estate charges.
During the quarter, we identified further opportunities to consolidate and have raised across our global portfolio, including on time on fire happened location.
For the full year, we delivered non-GAAP operating margin of 17, 7% up 90 basis points here on for here the average.
From our guidance was largely driven by revenue outperformance and partially offset by the incremental real estate charges that I just referenced.
Q4, GAAP EPS was <unk> 28.
And non-GAAP EPS was $1 on forecast.
The outperformance in the quarter was primarily due to higher revenue as well on realized and unrealized gains on our strategic investment portfolio.
These mark to market adjustments benefited GAAP EPS by approximately <unk> 21 and.
And non-GAAP EPS by approximately <unk> 22.
Turning to cash flow on.
Operating cash flow in the fourth quarter with two <unk> debt again at 33% year on year.
Full year, we delivered $4 eight julienne, if operating cash flow up 11% over last year.
This number was slightly lower than our guidance for the year, which was driven by debt investments discussed on previous call Andrew.
I would say timing of collections at the end of the corner.
Capex for the quarter was 145.
$29 million, leading to free cash flow of $2 billion up 35% year over year.
Now turning to guidance for Q1 and take about 22.
As a result on on Q4 performance, we are raising our Q1 revenue guidance by 170 million.
587, 5 billion to $5 8 billion or approximately 21% prior year over year.
This includes a $40 million contribution from acumen solution do you do it earlier acquisition closing date of February sorry.
Additionally, please know can your stock will contribute to higher sequential revenues in historical norms in Q1 due to certain contracts that closed in Q4, but you have to start day, beginning let me say line.
We are also raising our fiscal 'twenty revenue guidance by 200 million Keith.
$25 65 billion to $25 7 million.
Approximately 21% growth year over year.
This includes 190 million kind of acumen and subject to quarter to $600 million on Frac.
For Q1, we expect to deliver ERP or growth of approximately 19 tray pack.
We expect non-GAAP operating margin for fiscal 'twenty, two of 17, 7% or flat year over year.
Pleased to keep the margin flat, despite an expected 160 basis points headwind from slack and acumen continued investment on our core business and the anticipated gradual increase of travel in the second half of fiscal 'twenty.
I do want to call out the real estate consolidation mentioned earlier will have a positive impact on the longer term P&L like it did.
Point, we did not see a material benefit in fiscal 'twenty Tam.
We expect GAAP reported EPS for fiscal 'twenty two of negative 44 to negative <unk> 42, and non-GAAP diluted EPS of $3 39.
At $3 41 attack.
We expect the recent M&A will be a 53% headwind to non-GAAP diluted EPS.
Please recall that our L. I N E and EPS guidance assume no contribution from Mark to market accounting as required by ASU 2016 outline.
We expect fiscal 'twenty to operating cash flow growth of 10% to 11% year over year.
The debt.
We expect to deliver cash flow impact on slack and antibody, which we expect to represent a headwind to our year over year growth of approximately nine point.
We continue to expect Capex to be approximately three percentage of revenue hits on finding talent.
Please don't think on a free cash flow growth rate of approximately 10% to 11% kind of fiscal year.
Excluding the anticipated impact of M&A negative bond gets rate would be 'twenty, one 'twenty tapering.
Good clothes in a year as far different than what we ever kind of expected.
Sales force delivering durable top line growth non-GAAP operating margin expansion and took important steps on our path to 50 billion by re imagining our business and setting ourselves up for success from anywhere.
I'm extremely proud of the way that our employees navigate the challenges at fiscal 'twenty, one with great resilience and with an unwavering commitment volume and through our Kathy Murray.
Finally, I'd like to thank our employees, our customers our partners, our community and especially our shareholders for their continued support.
And with that Michelle, let's open up the call for questions.
Okay again as a reminder, if anybody would like to ask a question. Please press star one on your telephone keypad.
First question comes from Mark Murphy from Jpmorgan. Your line is open.
Thank you I have to say.
I Love the outdoor conference call on.
Sure.
I heard on <unk> or a CRO in the background there.
Sales Force park it at some point so loved that innovation.
My question is where are you in the demand cycle for Einstein and the AI technologies, you've had such a long head start there with that vision and you been embedding it into your clouds, but it seems like right now is the moment that most companies are.
Finally, really prioritizing AI as a top initiative. It's early this year.
So I'm wondering if you're sensing any kind of inflection there with companies being recharged and more ambitious goals for Einstein and the data layer.
Well I'm going to let Bret Taylor take this over but before he does so I just wanted to say that you know what I'm. So excited with how Einstein has been received by our customers and also how we have deeply integrated it into all of our.
So it's definitely a critical enabling technology that has made everybody just a lot more.
And I've been surprised as well as other companies have divested some aspects of artificial intelligence, we continue to see Einstein.
On the critical enabling capability and differentiation that we can offer key clouds, especially what we've seen with commerce. So I hope that Bret and further eliminate them.
Question I definitely view this year and this new pandemic world as an inflection point for the adoption of Einstein.
Broadly I think we're seeing just incredible secular trends towards digital.
A lot of Ceos, just talked about essentially we did in a year what it might have taken a decade before in terms of adoption of digital technology.
In all of your customer and your partner and your employee interactions are digital.
Artificial intelligence and Einstein can make every single one of those engagements more personal to put some numbers on it.
I will just take service cloud as an example in our digital service capability has grown it just unprecedented rates this year and with the adoption of things like chat bots and powered by Einstein.
91% quarter over quarter growth and chat bots alone our marketing cloud, which is just every single one of those interactions as personalized.
That cyber week this past quarter mobile push notifications were up 131% year over year SMS was up a 171% year over year, you're seeing just unprecedented adoption of digital and I think mark covered in his opening remarks, I think is really important on a big part of our thesis as a company is we're not going back.
The people who have experienced all these digital trends, whether it's buy online curbside pickup that direct consumer trend in the consumer packaged goods industry the move to telemedicine.
One of the customers Mark mentioned Humana.
One of the things that we're doing with our platform as Humana care support which is this digital interaction between those numbers its care teams as provider communities. All of these trends are here to stay and when we think about Einstein. If we think about our platform broadly we really think that we're looking at over the next five years. How can we help every single one of our customers across all of these industries gain success are men.
Anywhere and Einstein is a huge part of that vision.
And your next question will come from Brad Zelnick from Credit Suisse. Your line is open.
Excellent. Thanks, so much and congrats on all the success. My question is for Marc <unk> Gavin how do you think about the potential for acceleration coming out of a recession does your current pipeline look like it can support it and are you properly staffed up to capture the opportunity ahead.
Sure.
Thanks for the question.
The pipeline is very strong.
And we saw that through bill throughout the year and coming into Q4, we continued to see bill and Thats in spite of having no face to face events during the year it will be done digitally.
And as Bob said in his opening remarks Dream force to you and we delivered the whole thing digitally with huge success and giving us access to decision makers.
Language.
Net pipeline.
And.
Let me reassure you we are building capability in terms of the sales force would be delighted to hear that.
We are investing significantly.
In terms of our direct.
Sales force.
To take advantage of that demand.
And I'm very confident we'll be able to meet it so I think you're hearing today.
<unk> for them as old debt.
The business is strong the pipeline is strong and we've got confidence going into the year.
And your next question will come from March and volume from William Blair. Your line is open.
Thank you.
Mark this one might be for you or maybe Kevin, but we've touched on how much the world has changed over the past year with the pandemic I would love to hear how the complexity of your deals with your customers have changed over the past year, particularly as it relates to things like deal cycles deal size multi product adoption and perhaps cut.
Okay.
On time to value and how are you adjusting to address those changes.
Well I'm going to let Gavin that take this but.
I'm going to take it at the high order bit on I've been surprised how many sales calls we were able to make this year and if I could rewind history over the last 22 years I would've been enforced a much more significant digital discipline for our sales organization I think that when we look back at all.
On the time and energy, we spent physically getting on airplanes going getting in cars go into People's offices.
Just having a breakfast or lunch or dinner.
Waiting to try to get up and make a C level sales call. When you look today at the level of access that you have in organizations to conduct b to B sales I mean, it's all the capability when you're digitally enabled.
You can you can go anywhere just much much faster and that's a key reason why with Dream force not only did we have a very successful Dream force.
Could you probably saw the video of the bread and I, but also.
We then told each of our sales.
<unk> all over the world that they were gonna have to do that.
Same presentation, but highly customized with highly customized demonstrations for each and every one of our customers, which we then did.
And customers warmly received that with large groups of their employees.
So it's really an example of you can do a lot more to build pipeline have direct access and deliver highly customized selling at.
Level of velocity, but I don't think previously was possible Gavin do you want to come in on that as well.
What I'd say is the digital imperative is now the CEO of <unk>.
The overriding theme that we've seen over the last nine months.
Previously it might've been delegated down into the business, but it has become so important.
So urgent.
No.
Take direct control over it and that has been something we've been able to take advantage of on.
On coupled with the fact that video allows us to get to decision makers faster.
And more frequently it means that the pipeline has been very strong. So you had a question about the deal complexity and.
Changing it's been strong across the board.
So we've done big deals.
But the run rate business the volume side of the business continues to be strong as well on its important. Despite both of these muscles continues to operate within.
Within our business model, so it's a very well rounded performance in that respect.
And you've rightly identified.
Time to value is I think probably even more important now.
For decision makers.
This is a theme that on.
I was sent me Bret and I've been on calls.
Back to the forefront.
The CEO and the Cdos decision, making.
So the more we can.
Ensure that.
Standard sales force and our solutions are deployed and configured.
In a in a standard way to ensure that we can get fast deployment I think is really really important so.
We're agile we're getting the right set of conversations.
On the pipeline is strong across the board.
Yeah.
Your next question will come from Kirk <unk>.
From Evercore your line is open.
Hi, yes, thanks, very much and maybe this one's for Bret Bret you all named David Schneider, Chief product Officer, and President This quarter I was just wondering if you could talk a little bit about sort of what you're thinking in terms of going more vertical from a product development perspective in terms of his appointment and maybe debt and how does that match up with how you're thinking about true.
Maybe double down on certain verticals, where you can go deeper with customers and so from.
From an industry perspective, because that seems to be one of your strength has been able to sort of go deep.
Certain industries.
Right.
Yes, it's a great question and I'm, so grateful that David at this company I was joking with Marc the other David David Schneider has forgotten more about CRM than most people know, but in this industry for decades, and it's truly an expert.
And our strength as a company is that we are experts on our lines of business, we want to help people sell from anywhere service from anywhere market from anywhere.
Digital marketing and from anywhere, but we are increasingly experts in industries and now thanks to both our organic strategy and our acquisition of velocity, where it 12 industry that we serve.
Across so many strategic verticals for our customers.
And you heard our focus which is really helping our customers and this all digital work anywhere world find success find success from anywhere and so much of that is really industry specific every industry is going through a very.
Accelerating digital transformation and consumer goods as Mark said, its about creating direct trusted customer relationships, which is a completely new digital motion and that requires new expertise new software new Ken.
And Kelly, just a new business model.
Areas like health care, you've seen the impact this year retail obviously cyber week has accelerated again by almost a decade's worth of acceleration this year and when I think about our ability to really provide success from anywhere it's really building in the industry specific processes. So they work out of the box as Gavin mentioned.
We do a lot of calls together in that time to value discussion is the first thing that comes up and our vertical solutions are a big part of it.
Because it means we essentially are starting all of our customers on third base would be industry specific processes that are important to them. So really grateful for David leadership, and really grateful for the alignment between our product strategy at our distribution and sales strategy that this verticals out for it gives us.
And your next question will come from Tom Roderick from Stifel. Your line is open.
Wonderful. Thank you for taking my question.
Mark I guess I'll direct this to you, but probably yeah.
You've got opportunity for Gavin to chime in as well from the field seems like every year you get to the fourth quarter and the big deals Elas Big digital transformation.
A lot of those do show up in the fourth quarter I would imagine over the last several years the nature of those transformations have changed.
This has been such a wild an unusual year would love to hear what your what you're hearing from the field to what customers are talking about the different.
And the way that they're going about their digital transformation, perhaps as more meal sophomore tableau or maybe even talking about messaging and engagement I know, it's an open ended question but.
Some more anecdotal evidence from some of the field on big deals would be great. Thank you.
Well I'm going to have I'm going to have Bret and also Gavin come in here and talk about this because they've really had the opportunity to work on so many transactions together.
I think one of the major transformation. So it's happened this year and I think you can really see it in your peers into the numbers as you know.
When we actually sell to our customers, we're selling our customer 360 platform and we have sales cloud you are right. We have service cloud marketing cloud with Commerce cloud we have this amazing.
Tableau is credible.
No.
Multibillion dollar analytics cloud and we have this amazing Neil soft integration cloud billion integration cloud and are.
Our reskilling platform in our services business.
And our partnerships and our full ecosystem of solutions Bill when customers are coming in and working with us and if I'm working with.
<unk>.
Maybe one of these very large companies they are not as interested in some discrete cloud I'm sure you could probably appreciate that they are really interested in deploying our platform and we have a lot of different words to describe these different parts of our code, but the reality is that they really just want us to make them.
Successful and when we look at some of the very large implementations that we've done this year.
We're quick to say well, where do we fully implemented all of these 18 AT&T retail stores with our sales cloud, but the reality is that when you talk to Jeff Medical Fresh we featured a dream force.
Who is the CEO of AT&T wireless mostly he's just wants to know that he is more productive more competitive.
More innovative and debt.
He is able to have better customer relationships all of those employees are aligned and that's what we're really starting to sell and I think that thats a powerful transformation of our company and I think it really started when we had the successful really acquisition of tableau.
It started to get customers to be able to look at us just much more strategically it wasn't that we on boarded this incredibly successful analytics business with what we did.
But it was really that we all of a sudden have us.
Truly strategic solution for customers, it's quite broad and that gives them a platform for success and then when you look at.
The pandemic, it's transformed to the platform for success from anywhere. So yes, we're going to let them sell from anywhere service from anywhere market from anywhere, but we're going to let them be successful from anywhere and that is really our platform. We used to call. It if you remember the customer success platform.
Now he's really should just be calling it the success from anywhere platform and I'm going to have Bret and Gavin.
In here because I think that you are catching on probably one of the most powerful transformational moments for sales force and it's also honestly. It's one of the main reasons that we've entered into an agreement to acquire slack because its an enablement of success from anywhere.
Yeah, I'll add a couple of anecdotes. So you know all the big customer names that Mark mentioned opening and are all multi cloud transformational deals that really are about the entire customer 360, I mentioned align before that's marketing cloud sales cloud and our platform.
I was actually just having a conversation with the Chief Digital officer Shri coli, just yesterday and it's really inspiring because they are using they are an incredible company interested incredible capacity mentioned by the way that what are the cool things about our line is that it's more reported that ever because everybody wants to make sure. They are Keith look good.
Bill.
So is there like have a huge upsurge because everyone's like whoa everyone's will get them anyway.
That is an amazing CEO also by the funding of that is it's also true but the hard part is we're in this all digital world. So how do you engage with patients and all digital world. So using our core platform, where do you expect but they are also building custom apps like my Invisalign, which is built on a relative built on our platform to build this really direct trusted.
The relationship with their patients and I think it's a really wonderful example, because when you think about as Mark said, what they want it's not a sales capability is not a marketing capability they need a digital customer experience defined success from anywhere and I think every single business is going through this in a unique way and I think that's very representative of our larger.
Sure.
Yes look I think most of the points I've been here.
My perspective.
C suite.
Conversations around solutions fundamentally and not a balance.
Product any more and looking for multi cloud solution based on our customer 360 single source of truth.
A single view of the customer.
And to the earlier discussion.
<unk>.
But a lot of the damages.
Thanks for the the.
Industry Bill team, so that they can use it out on the box. So I think we're touching on all the key theme I think there's one other thing I would mention is.
We're getting into more conversations with customers around outcome based initial.
Initiatives, so whenever they want.
Our services business is to be involved as part of the design.
And there is a real focus on that.
One of the outcomes and how we can underpin those so.
I think we've touched on most of these things already today, but.
Certainly the complexity of the conversation the sophistication of the compensation is increasing.
And your next question will come from Frederic half on Meyer from Macquarie Macquarie. Your line is open.
Thank you.
Mark I wanted to ask a bigger picture question.
The portfolio of clouds engage customers offer workspaces for employees and enable business introspection with tableau and Einstein that was block essentially integrated third party apps and automate API drug could work across the ecosystem.
So if we bring all this together how do you think about the future of work and sales force is role in enabling humans to focus on more meaningful value add work.
Well I think this as you know.
Really where we're going in.
I don't know if you watch my presentation from Singapore, but.
I want to Singapore, with Bret and we did our company kickoff there than we.
We were in person with customers there and we are in person with our employees there and we're really looking at the future of work there I think that they're really living where the rest of us are going to be which is why we went there you know the pandemic is very much something that and in many ways is behind them their businesses in their offices and their hotels in.
Our open there's still wearing masks and mediums, but they have very low virus rates and.
When you look at what's happening there and you look at how they restructure do you look at how often employees are coming into the office.
Before.
This is what I think the world that we're about to get into and anyway. Bret was what was your reaction.
I think it's a really wonderful point I think the future right. Now we are at this inflection point, where every executive including Mark including me how does this once in a lifetime opportunity to really transform the way they are companies work.
If you had told me a year and a half ago that we would execute this entire year without being an office without getting on an airplane.
It was impossible, but we did do it and we did it without any notice and every executive and every company, including ours coming out of this it is really asking the question on what does the company we want to be on the other side of it.
Sales medians are going to get on the airplane for is that contact center as it used to be a building that is now something that exists on the cloud are going to go back to the building or just embrace the cloud and I think it really everywhere.
In Singapore and talk into a bunch of companies that had reopened on when it stood out to me Mark was actually how many of the pandemic behaviors actually remained.
I think that's a really interesting glimpse of the future and you're seeing it across across our customer base. There's a concept called flexible work that every single sales medium I'm in it comes up which is weighing on our employees going back to the office and notably what employees arent going back to the office and I think it's a really interesting time for digital technology, but as you.
You said I think it's a really interesting time to think about what the future work looks like and it's part of what drew us to slack in that company's vision for the future because it's not just the digital translation of the way we used to work. It is truly a vision for a new way to work and I think there is really just incredible appetite for that from our customer base.
Yeah.
And your final question for today will come from Gary Coleman from Keurig Securities. Your line is open.
Yes, thanks for taking my question.
I guess Bret maybe it's for you I remember asking at the analyst day about CDP and your All's effort. There I think you had said something about how you have some large strategic opportunities that we're working on but I'm kind of curious.
What kind of.
Benefits did you see from the CDP product in <unk> and how much it drove marketing cloud and how big can this business be enough.
<unk> 'twenty.
'twenty two.
I'm extremely excited about our customer data platform our brand name for that we call customer 360 audiences.
I think theres a couple of details I'll add Mark mentioned hyper force. This is really the architecture, that's enabling our customer data platform and notably actually not just in our marketing cloud and not just for market tiers, but actually enabling b to C scale across our entire platform.
I really do think that you know.
CRM for a long time was for BW sellers backward Marc and Parker started this company 21 years ago. That's what people thought now every single company of any scale on every single Department wants a single source of true core to their customer data they want to create segments. They want to integrate all of their data from legacy data sources and proprietary data sources and then they.
To activate that across every channel digital channels in person channels and customer 360 audiences generally available we saw really strong performance in it.
<unk> first few quarters of being available to customers and we really viewed as a foundational for our marketing cloud in the coming years.
So maybe we'll take one more question from Kash Rangan from Goldman Sachs. Your line is open.
[laughter].
Sure.
Cash your line is open.
Yeah.
Okay that clears that.
Brian Smith to the end of our Q&A session I'll turn the call back over to the presenters for closing remarks.
Thank you all for joining us on our Q4 FY 'twenty on earnings call do you have any questions.
On Investor at Salesforce Dot Com and we look forward to seeing you at our Q1 call. Thank you.
Thank you everyone that will conclude today's conference call you may now disconnect.