Salesforce, Inc.

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Salesforce Q2 Fiscal Year 20 Earnings Conference Call. At this time, all participants are in a listen-only mode. Following management's prepared remarks, we will host a question-answer session, and our instructions will follow at that time. If during the conference today you require operator assistance, press star then zero, and an operator will be happy to assist you. As a reminder, this conference call is being recorded for replay purposes. Now, it is my pleasure to hand the conference over to Mr. John Cummings, Senior Vice President, Investor Relations. Sir, you may begin.

Thank you so much, Brian. Good afternoon, everyone, and thanks for joining us for our fiscal 2022 quarter results conference call. Our results press release, SEC filings, and a replay of today's call can be found on our IR website at www.salesforce.com slash investors. With me on the call today is Mark Benioff, Chairman and Co-CEO, Keith Block, Co-CEO, Mark Hawkins, President and CFO, Brett Taylor, President and Chief Product Officer, and Amy Weaver. president, legal, and corporate affairs. As a reminder, our commentary today will primarily be in non-GAAP terms. Reconciliations between our GAAP and non-GAAP results and guidance can be found in our earnings press release. Some of our comments today may contain forward-looking statements which are subject to risks, uncertainties, and assumptions. And should any of these materialize or should our assumptions prove to be incorrect, actual company results could differ materially from these forward-looking statements. The description of these risks, uncertainties, and assumptions, and other factors that could affect our financial results are included in our SEC filings, including our most recent report on Form 10-Q. Before I turn the call over to Mark, let me provide a brief comment regarding Tableau. We're incredibly excited about our acquisition of Tableau Software, which closed on August 1st, and have provided revenue guidance for Tableau for Q3 and FY20. As previously disclosed in our 8-K, The United Kingdom Competition and Market Authority, or CMA, is reviewing the transaction and has imposed a full separate order pending completion of its review. Due to the whole separate order, our ability to discuss Tableau today on this call is limited. We're happy to be working constructively with the CMA to conduct its review. And with that, let me turn the call over to Mark Benioff.

All right. Hey, thanks so much, John. I really appreciate it. Hello, everybody. I'm actually in Geneva, Switzerland, and the team is in San Francisco. I'm in Geneva at the World Economic Forum headquarters where I'm attending our annual Board of Trustees meeting and also our International Business Committee of our top 200 CEOs in the world. And it's been a fascinating meeting, but I'll tell you one thing that everyone is really excited about here is what happened in the United States, which is that business roundtable one of the top two business groups in the U.S., published an incredible statement this week on the purpose of a corporation and talked about how the purpose of a corporation is to serve all stakeholders. Why that's exciting here is many of the words that they were using, almost the exact phrases, were written by Klaus Schwab, the founder of the World Economic Forum, over 50 years ago when he was at UC Berkeley. It's great to see the BRT take this incredibly progressive stance, and I'm just very grateful to them because, of course, at Salesforce, we do believe that business is the greatest platform for change. Well, I want to just thank you, John, for introducing that, and also thank you, everybody, for being on the call today. As you can see, we had a... Just incredible quarter here. Revenue in the quarter rose to $4 billion, up 22% in dollars and 23% in constant currency. And we ended the quarter with more than $25 billion in total remaining performance obligation. That was up 20% versus last year. It's really amazing what's happening at Salesforce. With our organic growth and our acquisitions of Tableau, Salesforce.org, ClickSoftware, we are raising our fiscal year 20 revenue guidance. to $16.9 billion at the high end of our range, representing about 27% growth year over year. Now, we have really been very strategic in building out our Customer 360 platform. This is our vision that really is at the heart of what's happening at the Fourth Industrial Revolution. Everybody knows the Fourth Industrial Revolution is underway. Everyone and everything is getting connected. But behind all of those things is the customer, And certainly all the customers that I'm working with here in Geneva and all the customers that we work with around the world, well, they realize that behind all that Fourth Industrial Revolution is their customer and that they need to build that customer 360 platform. And that's what we're doing. We're doing everything we can to be able to 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 an enormous wave of digital transformation. I'm certainly seeing that here in Geneva. IDC forecast global spending on digital transformation to reach $1.18 trillion in 2019. That's an increase of nearly 18% over last year. It's really quite amazing. And Salesforce is 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 forecasts global spending on customer experience alone to reach $641 billion by 2022. Every company needs an 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, in service, marketing, commerce, communities, integration, app dev, and more. You know, Customer 360 includes amazing platform services such as absolutely leading artificial intelligence and breakthroughs in vision 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 to everyone. We're operating at 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 logged, 4.1 billion messages and emails sent, 4.2 million orders processed, 53 million reports and dashboards created every day, and 700 million commerce page views. You know, 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 you'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 leap forward for Trailhead. Well, Salesforce skills are in high demand. For those of you who watched what happened, I think just now about a week ago, we saw that the Salesforce developer was ranked as the second, number two, 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 innovating on our platform, Salesforce is incredibly well positioned to help companies transform their customers. And you'll see all of this at all this amazing innovation and all this amazing customer success at Dreamforce, which this year will be November 19th 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 the thought leaders, industry pioneers, amazing innovators, incredible customers, and, of course, all of our trailblazers for four days of customer success, trust, innovation, equality, 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 who know, we also have something about to come out, which is our new book, Trailblazer, The Power of Business is the Greatest Platform for Change, including many of the concepts pioneered by Klaus Schwab here at the World Economic Forum in Geneva. It comes out on October 15th. So you can preorder your book now, and I hope you'll get a chance to read it. And let me know what you think of Dreamforce. And until then, I will look forward to seeing all of you in November. And now over to Keith.