Salesforce, Inc.

Welcome to Salesforce 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 1 on your telephone keypad. If you require further assistance, please press star 0. I would 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. Thank you, Michelle. Hello, everyone, and thanks for joining us for our fiscal 21 fourth quarter and four-year results conference call. I'm 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.salesforce.com slash investor. With me on the call today is Mark Benioff, Chair and CEO of Amy Weaver, President and CFO, Brett Taylor, President and COO, and Gavin Patterson, President and Chief Revenue Officer. 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 that are subject to risks, uncertainties, and assumptions. In particular, our expectations around the impact of the COVID-19 pandemic on our business acquisitions, results of operations, and financial condition in that of our customers and partners are uncertain 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. A description of these risks on certain given 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 the call to Mark.

All right. 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 PCR testing made possible by Visby Medical here in the Bay Area, through masks, safe distancing, and being outside, and a gorgeous San Francisco day. I am here together sitting at the table with Amy Weaver, our Chief Financial Officer, and Brett Taylor, our Chief Operating Officer, Gavin Patterson, our Chief Revenue Officer, Evan, and Mark Hawkins, our CFO Emeritus. So it's great to be here with everybody. and um uh we haven't really done an outside conference call before but you know 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 in a new place, and we can see the beginning of a return to our offices. In fact, I was in Salesforce Tower yesterday and held our global all-hands call. We can see a return to restaurants, to maybe even to sports arenas and to concerts one day. Who knows? You know, we're getting closer with all of the advancements in technology. But the reality is that even with the vaccines, we're not really back to the way it was. And I was the only one in the Ohana floor at Salesforce Tower. And we can all, I think, agree that this pandemic has forever changed our world and how we are working and living and educating ourselves from anywhere else. Our Salesforce futurist, Peter Schwartz, who many of you know, probably said it recently to me best when he said we're just in a new pandemic world. And as this is going to evolve and shift, 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 our earnings call. It's an all-digital, it's work-from-anywhere world where every company and every audience call. We have to be able to work, sell, service, market, collaborate, and analyze our data from anywhere. And Salesforce was somehow already built for this world before it existed. And that's why over the last year, Salesforce has become, I think, significantly more strategic and more relevant to our customers than probably any time before. And today... 22 years after founding of Salesforce, you know, we can see it right here that more and more companies around the globe are turning to Salesforce to deliver success from anywhere. And that's why, even in 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, our revenue rose to more than $5.8 billion, up 20% year over year. Truly amazing for a company of our size. And for the full fiscal year 21, revenue was $21.25 billion, which was up 24% year over year. Based on this strong fiscal year 21 results, we're raising our fiscal year 22 guidance to $25.75 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 26 is now $50 billion, or basically we're going to double the company from where we are right now. That is doubling revenue in five years, and we'll reach that milestone faster than any other enterprise software company. That would make Salesforce the second largest independent software company in the world. Amazing. This is all really a testament to our employees and our customers and, you know, the technology and really this amazing ecosystem of all of this together and the millions of trailblazers who are working from anywhere and pioneering success from anywhere. I'm often asked, How is it that we're able to succeed in such a difficult time? And I'll tell you, Salesforce is accelerating at such a rapid speed because we are already in 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. There's never been a more important time when trust in government and other institutions, well, we can see it's been eroding and customers are seeking Direct customer digital relationships. And I think that as the world has evolved, especially in the last year, the acceleration of these direct B2B and B2C 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, well, we're helping our customers navigate the pandemic and achieve success from anywhere. You can see that. I'm going to talk to you in a second about some tremendous innovations with our vaccine cloud and our contact tracing capability. And innovation, well, you can see it. We're innovating, well, faster than ever before, developing these amazing new products and all these incredible new technologies. And quality, well, we're helping and... Executing philanthropy and working together across all of these communities, especially our schools, hospitals, small businesses, and the most vulnerable populations get through what have been some of these incredibly difficult times. Our values have guided us as we have 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 Salesforce and how we would succeed from anywhere. We called that our pandemic operating model. We sharpened our relevance, increased our levels of participation, enabled our employees, created new types of sales plays. And I shared our model with many CEOs that I've talked to over the last several months, and now they're applying it to their own organizations and getting incredible new levels of performance out of it as well. As we dialed into the model, we immediately saw our team's level of relevance, participation, and enable skyrocket. For example, from Q2 to Q4, our own enterprise sales teams, even though they were at home, used our sales cloud to engage in more than 6 million conversations with customers asking how we could be the most relevant and useful element in a time of crisis. I don't think we would have survived as a business without our sales cloud. It was critical to build those business-to-business relationships that are the essence of Salesforce, but that 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 Conspirity or Line or 3M or so many others to do the same. And we all, of course, we all love getting on the airplanes and flying somewhere and being in person with the 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 Dreamforce. And I hope all of you had the opportunity to experience Dreamforce. But we have the ability as our marketing cloud to have those direct digital relationships at scale. And instead of having 170,000 people take over San Francisco, we had more than 140 million views of just Dreamforce. That's amazing. We also created hundreds of other leadership events throughout the year for customers, employees, partners, communities, and that generated another 350 million views worldwide. In the year, customers like Zoom, like CareFor, 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 as our business continued 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. Customers in the year like Gap and Sonos and even Uber Eats who use Service Cloud to power success from their customers from anywhere. Now, as a customer of Slack, I can tell you we're using Service Cloud with Slack to improve performance. We've seen a 26% improvement in case times and close rates and 19% improvement in same-day resolution. That's an example where acquisition of Slack has made so much sense. We've seen the combination of products like Service Cloud and 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, we're going to build Slack into more of these products that we have used today and conceptualized and make our customers even more productive. We're going to create the most open and interoperable ecosystem of apps and workflow and enterprise software. By achieving success from anywhere at Salesforce, we're delivering success from anywhere to our customers. In many ways, we're becoming the success from anywhere company. Whether it's B2B or B2C, our customers need to accelerate their efforts to go all digital to build direct trust and relationships with their customers. And for so many companies, it's a matter of their survival. With the 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. That's not a surprise to anybody. We all know we're shopping from anywhere and creating 4 million sales opportunities working from anywhere, their home, a coffee shop, a mountaintop. 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 in 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 predictions every single day across our entire Customer 360. Amazing. Customer 360 makes all of our customer interactions smarter than ever before, and it's a great example why Salesforce has been ranked by IDC as the number one CRM for the seventh year in a row. It's just the fourth quarter, so companies are turning to Salesforce every to build trusted relationships with their customers and deliver success from anywhere. Companies like I mentioned, like Align or Telstra or Dixon's or Marriott or RBC or Cigna or Sports United, across so many industries, across so many geographies, companies, large companies or small and medium companies, even brands like IQVIA and Deluxe, well, they turned to MuleSoft, 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 means managing the pandemic from anywhere. By developing technology like contact tracing, work.com, well, you've seen Salesforce.com is at the forefront of helping organizations and governments beat back the pandemic, or in the case of the state of Victoria and Australia, well, basically eradicate it. And with Vaccine Cloud, we're helping cities like New York or states like where I am right now in California or other entire countries scale up vaccine operations and get vaccine shots in arms. And I have to tell you, I've just never seen. you know, a 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 that more than 50 federal, state, local, and private health organizations are using Salesforce to manage this incredible response to pandemic. Cities like Austin and Chicago, New York City, California, New Hampshire, Rhode Island. I mean, it really goes on and on. More than 245 million people, in fact, have used... COVID-19 data through our Tableau dashboards. And thousands of organizations are relying on Tableau's COVID-19 data hub, such as Verizon and UNC or UNICEF or Experience. And you can check that out at public.tableau.com or just go to tableau.com and you'll see a whole tab just on their response to COVID-19. It's been incredible what our team at Tableau has done. The pandemic has shifted us all into this work from anywhere world, but it's just the beginning of a whole new era. And that's why we're so excited about what we have done and how we have transformed our own organization and our technology with Hyperforce. Look, we've built an incredible new platform. You heard about it at Dreamforce for the first time. This Hyperforce platform, well, this is a fundamental new architecture for us. It lets us run on any hyperscaler. Hyperforce allows us to run anywhere. And that allows our customers to choose where they want to manage their data. It's 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 our previous implementations. It's another example of how well we're going to be able to help our customers achieve success from 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, we've accelerated our efforts to serve all stakeholders, including our communities and the planet. We supported frontline workers and 300 hospitals around the world by delivering over 50 million pieces of PPE. We've provided millions of dollars in grants to schools to help with remote learning, to local small businesses to stay afloat, and to organizations focused on racial justice as that turned into a crisis here in our United States. And we've partnered with Gavi, the Vaccine Alliance, on equitable distribution of vaccines across 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% in the last year. With our sustainability cloud, companies across the globe are tracking and reducing their carbon emissions and keeping track of their critical ESGs. We're supporting the global movement to conserve, to restore, and grow one trillion trees as the founders of the World Economic Forum 1T.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 Salesforce is today and where we're going. It's a new business operating model, work from anywhere, direct trusted customer relationships. You know, you can see this incredible product line, all built on this hyperforce architecture, serving all stakeholders. It's 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 what we've been able to accomplish in fiscal year 21. And I'm very proud of us, even though we're freezing out here in San Francisco. But we're outside and doing it safely. We've all been PCR tested. It's all totally fine. And now I'm turning it over to our new Chief Financial Officer, Amy Weaver.