Salesforce, Inc. (CRM) Earnings Call Transcript & Summary

Good afternoon, everyone. It's Brent Thill from the software team at Jefferies. We wanted to welcome you to a chance to have a quick fireside chat with Bret Taylor, President, COO at salesforce.com. Special thanks to Evan and the rest of the IR team at Salesforce for making this happen. They are also on the line and available to take your questions at the end of the call. We will do a quick chat, and then I can take your questions. You can e-mail them to me at [email protected], b-t-h-i-l-l at jefferies dot-com, or you can jump in on the live Q&A session. Bret is President and COO. He leads salesforce.com's global product vision, engineering, security, marketing and communications, a very respected engineer with an executive and an impressive history of building widely used and loved products. He was most recently the Co-founder and COO of Quip, the company was acquired by Salesforce in 2016. And then prior to that, he served as the CTO of Facebook, saw the company through a successful IPO in 2012, and he's credited with the invention of the like button. Bret is also a member of Twitter's Board of Directors and a member of the Stanford University and graduated there in 2003. Bret, thanks again for joining today. Apologize if you don't have a bearskin rug and a fireplace to talk through. But maybe if you could just kick off, and congrats on your recent promotion to President and COO. I think many would love to hear how your role is changing and how that's compared to when you initially joined.

Yes. Thank you, and thank you all for joining the call. And it's funny to do all of this virtually, and if my kids start shrieking in the back, I apologize in advance. We remain working from home. Yes, so it's been a real honor to take on the role of Chief Operating Officer. You know when I arrived at the company, through the acquisition of my start-up, Quip, I really focused on operating on that sort of as an operating unit within the company. About 2.5 years ago, I took over products, working on our product strategy, and got the most recent promotion at year-end, a much larger part of the company and really focus on bringing together our product strategy, our go-to-market strategy, our marketing and acquisition strategy, to make sure that we're aligning ourselves for the next decade of growth. I think this company is, I think, really defined by really redefining the market that we're in. I talked to one of our large institutional investors, who've been in the company since our IPO, and joked at the time that they invested originally, the total addressable market for CRM was less than our current revenue. And I think it's because, we as a company, we really said, been willing to reassess what does it mean to transform people's customer experiences, and enable them to have a digital relationship and digitally transform their customer experience. And that led to, I think, a pretty robust stream of both organic product development and acquisitions, and we've really had to transform our go-to-market strategy in the process. So I'm excited in this new role to play a bigger part in that, especially at the scale we're at, it's a pretty privileged time to be in a great company like Salesforce.

I think we're all doing this call from home, and obviously, living in unprecedented times. The work from home, WFH team has emerged. How are you helping customers in this new environment? Many ask us, how you kind of reshape part of your go-to-market or your product line to help companies in this environment? It'd be great to hear your perspective on that.

Yes, it's a wonderful question. I think there's -- I kind of view this crisis, it is unprecedented. It's kind of having a few different stages. Right now we're in the middle of a crisis, and we want to help all of our stakeholders, our customers, our communities, our employees, just respond to that crisis. And we've been trying to bring the full force of our company behind that. Our software, which plays a big part for our government, customers and private customers, who are figuring out how do they engage with their employees and their customers digitally, you're on work from home, helping in our communities through our philanthropic efforts and our employee volunteering, which had been a big part of this company, and our 1-1-1 model since our inception. But I also think it's important in the time of crisis to help our customers and Salesforce look beyond it, make sure that we're preparing ourselves and preparing our customers to get back to growth. And once this crisis subsides, which I hope, with the amazing efforts of the global community, and I think the response we're seeing, I hope it can happen robustly and quickly, but honestly, we don't know. And with that, I think -- I do think that this is really creating an imperative for businesses around the globe to invest in digital technologies. When I look at our business, like our Commerce Cloud business, our direct-to-consumer digital commerce is really the one part of the economy that is still running, the [indiscernible]. Customers who have invested in digital service experiences, they can do service from home. And similarly, in a lot of our other platforms, we really see across the board, like can we help our customers sell from home, service from home, market from home. And you know well, that won't be completely the new normal. I think this event has really, I think, created a sense of an imperative for companies to have a robust digital strategy sort of in the face of really dramatic shifts to how companies engage with every one of their stakeholders and customers, and how the global supply chain depends on these technologies. The companies that are digitally equipped right now are doing much better and much more agile than the ones who aren't. So as I said right now, we're focused on just helping every one of our stakeholders deal with response, and that we want to make sure that we're well positioned to help every single one of our customers get back to growth, and really invest in what is really, I think, become a digital imperative, once this -- once we get back to rebuilding the global economy.

Just on that, is there 1 or 2 products that stand out where customers feel like they can get up and go in quicker? Or is this still just a big platform play? Everyone is saying, look, I just can be on this platform, and there's so many things I can take that. There's not one thing. It's a platform that's still selling. I mean many kind of go back to yesterday's comment of Nike saying, they had some big store shutdowns, but the online digital market helped them by selling online. Anything you're seeing in terms of the Commerce Cloud or any other areas that you feel are kind of standing out in this time?

It's a wonderful question. And I think when you look at the trends that you've seen in a lot of industries, to build completely digital experiences, in retail, consumer goods, the direct-to-consumer trend, a lot of those interactions are very durable right now, because those digital interactions still work in the face of social distancing and sheltering in place in the world in which a lot of people are living right now. And so I think that certainly stands out, and I heard those comments as well. And they resonated and resonated with that part of our platform. I also think that one of the other things that we've really focused on is focusing on just the communities that every one of our customers engage with, whether it's the community of their employees, the community of your partners, the community of your customers. And a lot of the success we've seen with customers engaging with communities for -- if you just take a small business, asking, are you open? What are your delivery hours? When are you open? What are your plans? That kind of community engagement technology, which is a big part of our core platform, is also something I think is vitally important. I think the -- what I think a lot of people are learning now is just a lot of the casual way, information's flowing around companies right now, really needs to be embedded in these digital tools. And so we're really trying to be a trusted digital adviser for each one of our customers as they navigate that. And it's not just the digital marketing and digital commerce, which is a huge part of it, but also how each one of our customers can get a community around every one of their stakeholders with this digital as well, so they kind of navigate these changes, which are happening day-by-day in real-time with every one of their stakeholders.

That's great. One of the big questions that everyone is asking is just around, with Keith Block's departure, obviously, very influential player on your team, and he was -- had a big presence in the field. If you could just talk through what you're seeing in the wake of his departure? And I think many are still a little concerned from this. Can you just give us a sense of what you guys are doing? And what's happening? And maybe why we perhaps shouldn't be as concerned from this departure?

Well, first, I just want to say Keith was a mentor and a deep friend of mine, and had a huge influence on, not only the company, as you all know, but also me, personally. And I think the thing that I think that's really a credit to Keith as a leader, just the bench that we have, particularly on sales side, with our earnings last -- the last earnings, we announced Gavin Patterson will be running our international business, COO of our international business. We also announced that Brian Millham, who's been at the company for almost 20 years, is running our American sales business as well. We continue to have great leadership in Japan under Koide-san, an incredible leader. So I think that -- like we obviously focus a lot on developing our executive bench, and I think I feel just great confidence in the leadership team that we have in place. We're really growing the business and really executing on the strategy that we've been forming over the past 5 years in particular, which is making sure, number one, we're a global business, and we are where our customers are, that we're speaking the language of our customers and delivering, really the most vital industry-specific capabilities to each of our customers with the vertical and industry strategy, I think, Keith really brought to the company; and then we're deepening our relationship with all of our partners, and making sure that we're really bringing success to all of our customers, which is really defined, not just by our software, but the partners of each one of our customers used to deploy it. I feel like we have a great bench and a great leadership and team in place that are really executing on that strategy.

The other big announcement last quarter was the acquisition of Vlocity. It fit into what you had mentioned with Keith's passion for the verticals. What does this bring to your portfolio that you didn't have?

Yes. So first, I think David Schmaier is just an incredible leader. I've been in the CRM business for a long time, and I'm personally really excited to work with him. I think he brings an incredible track record, not just from Vlocity, but with his experience at Siebel. And the team there really understands, really what it means to bring customer relationship management and these industry solutions and ways to other teams in the world do. And then as I look at the product offering, the capabilities like communications and media, insurance, they really complement our product suite perfectly. And they've been, as we -- I think you know, a partner and an ISV at Salesforce for a long time. So their solutions are -- have been designed to really complement our capabilities. But it really means that our capabilities, which we've been building out in financial services, in health care, most recently in manufacturing of consumer goods, and now in media, communications, insurance and others, I think we'll end up with by far the most robust set of industry capabilities in the market, and really enables us to get almost every business, particularly enterprise business in the world, and come with a really complete set of industry capabilities, which is really a meaningful change how we go to market, how our customers really look at our platform, and enables them, candidly, to sort of start on third base, so to speak, when they're deploying Salesforce. Because so many of the industry-specific workflows will be built and working right out of the box.

Last year, you did roughly $17 billion in acquisitions, adding Vlocity brings you to $18.5 billion. Many investors say, Bret, you're a product guy, like, take a break. Where's the organic innovation? There's been a lot of kind of pushback of why you need to go at this pace. Can you just balance this between the acquisition side? And could you just take a break and digest what you have, and show investors that the type of growth on the top and bottom line on the margin side without having to do this magnitude of acquisitions?

Firstly, I think, as Mark said pretty recently, we are intending to retake a pause and make sure that we integrate Tableau successfully. I think Vlocity was a bit of a special case. We've had a long-standing relationship with them and an opportunity to -- there was time base to really get this asset at an incredible price. So I do think that we're really focused on making sure that we absorb this acquisition successfully, and just want to reiterate that. But to speak to the broader philosophical point that you brought up, we, I think, as a company, have what -- I think Mark called a beginner's mind, as it relates to innovation. And when I look at -- and we believe that a lot of innovation will come organically and developed by our products and engineering teams. But we see incredible innovation that could provide value to help build our Customer 360, which is our product strategy, and really complemented in unique ways. We're open to it. And I think when I look at the success in the acquisition of, say, of MuleSoft, which brought deep integration capabilities to our Customer 360, I think that package has done incredibly well, both from a financial standpoint, but perhaps, even more importantly, it helped drive success for all of our customers, because it means that they can more successfully deploy their Customer 360 and integrate with all their legacy systems and deploy it faster. And so I think we're going to continue to have a beginner's mind as it relates to building, partnering, buying, and just making sure that we're doing it responsibly. And I think we have a good track record of integrating, not only technologies, but integrating machines. I'm somewhat biased being in project of one of those acquisitions, but a large portion of our leadership team that's driving here have come in through these acquisitions, and I think really helped form the Salesforce as we know it today. So agree with you when you hear responsibly, but also I think we take great pride in our capability of successfully integrating these acquisitions on behalf of our customers.

Yes. One of the things that stood out, I think you had presented this at Dreamforce, was around marketing and commerce in this concept of headless commerce, where if you're selling a product, you want to be kind of wherever, but you have to fulfill and be a back end, and you guys can help fulfill a lot of that demand. Can you just expand upon what you're seeing? We've obviously seen this when we log on to Instagram and Facebook, with shopping taking over and Zuckerberg spending a lot of time saying it's one of his biggest initiatives. How do you benefit on the back end? And for those that don't really, truly deep-dive -- dove into this topic, what you're seeing around the marketing in Commerce Cloud?

Yes, it's a wonderful question. And I think broadly, we're just seeing, with digital technologies, commerce experience, the marketing experience of being really going where the consumers are, which means there's lots of really experiences being embedded in popular consumer applications, whether it's Facebook, as you mentioned, or Pinterest or messaging applications. And when you are a CG company that's trying to go direct-to-consumer or you're a retailer, you want to really create integrated experiences, where you can grow your brand and enable commerce and you make the discovery of your brand to happen wherever those consumers are. And that -- the technology term has had both and it just means that behind that, you still have one management, you still have all the inventory. You still have all your product listings. But it's not just powering a website anymore. It's powering commerce, it's really integrated into all these consumer experiences. And I think broadly, this really fits into our product strategy, which is, we're not just a service product or a service platform. We're not a commerce product or a commerce platform. And I think when we think about enterprise capabilities and building for the most sophisticated and demanding brand in the world, it means that we need capabilities that can move at the pace of consumer expectations and move at the pace of technology trends, which means deep extensibility, deep platform capabilities. And so I think it really gives us and gives our customers a strategic advantage at sort of navigating this extremely rapidly changing, sort of consumer landscape where these experiences are being embedded.

Yes. I want to make sure when we get to investors' questions, again, you can e-mail me at bthill, b-t-h-i-l-l at Jefferies dot-com. I have a few questions already in the queue. There are definitely a lot of questions around the environment. I know we're not here to update people on the environment. But maybe even for Evan and the IR team, just when you think about, there's a lot of questions around the mix of commercial and SMB versus kind of what you saw in the past. And I think you've seen commercial build and SMB at the beginning become a bigger percent of that, but that piece is now overshadowed by the enterprise business. I don't know if there's any thoughts you can talk about that mix and in kind of what you're seeing among that client base today.

Yes, we talked a little bit about this at Analyst Day, where we've seen that mix shift a little bit more towards enterprise. But we're really happy we sort of have a nice breadth across both segments. And we feel really good about how that has progressed, especially with the environment.

And when you think about some of the SMBs who may have just started with sales or kind of 1 solution, are you starting to see that SMBs move to more of a platform approach? So I guess, if you fast-forward, if you're just taking sales and you're a small SMB, and you have an issue that goes on versus you're running multiple aspects of your platform on your side, you would theoretically have a lower likelihood to churn off. Are you seeing more SMBs take the full suite versus just a one-off product solution set?

Yes, we -- the trend we're really seeing in truly super small business, call it sole proprietors, like under 20 employees, is really seeking out more integrated solutions. I met barber shops that we go service forward platform in the same way an enterprise would. But we're really trying to meet that demand with a new product we call Essentials, Salesforce Essentials. It's an integrated sales and service products with 1 product, which is, I believe, $25 per user per month. So really simple packaging for really the whole CRM. We've really tried to address that to, I think, bring the spirit the way we're talking about, which is the complete solution for small businesses that's easier to use and easier to onboard. And I think broadly, I do think that we really take pride in serving all segments of the market. And I do think there is a divergence and requirements and needs that we -- if you look at really the ethos of Salesforce, where it started, it was an innovative business model with Software-as-a-Service, innovative delivery model with cloud, but also, I think, Mark, having sort of a fun quote, which is, could you make CRM as easy to use as Amazon.com. But I think being inspired by ease of use, is a really big part of why our customers are more successful with our technology than others. And our focus on SMB, I really think helps hold us accountable with keeping that simplicity, I think really defined our company from its inception.

There are a lot of questions around the demand environment, and we're not going to go there. But I guess the one thing is, kind of a question that comes out is, kind of, in the last downturn, what did company kind of learn in the tips and tricks to kind of help customers through what we're going through right now? Is there a message because -- a piece that kind of keeps you more insulated in this environment that you've learned from past downturns?

Look, I think, first, it's really too early to tell, like, the extent of the impact of this because we're right in the middle of it. So we have to be thoughtful. But I do think we're really fortunate that we have a really durable business model. 90% of our revenue is ratable. About 70% of our FY '21 revenue guide is already booked. And we have a really durable business model. So I think we really want to make sure that we're focused on the long-term despite unprecedented interruption in the short term. And I think that we want to make sure that we are focused on the success of our customers, helping them respond to this crisis, helping them get through it, and then also, when this -- when it will end at some point, we can help our customer base to get back to growth. And I think the privilege to this we're in is, a big part of that will be their Customer 360, to help digitize their customer experience and really take advantage of the growth that these consumer experiences are providing. And so we're really trying to think long term. We'll be responsible in the short term as we deal with a very unprecedented situation.

Yes, that's great. A lot of questions just around more complex implementations in an environment where it's harder to get people on site. How you actually are dealing with clients in this time with some of these more complex integrations?

Yes. You're absolutely right. We're definitely in unusual times. I joked about my kids, perhaps jumping in my office here as we're on this phone call. The fact that I'm even saying that, I think just illustrates how unprecedented this is. So our sales teams are working remotely, and we're switching a lot of our customers on to virtual only. One of the ones that happened a few weeks ago was our -- we had a world tour event in Sydney. We did it entirely digitally and got incredible engagement, but digital engagement. And honestly, we don't know what impact this will have, just because these are unprecedented times. But I do think that we're going in it to sort of evaluate it by day by day, and make sure it's here, again, leaning into the agility that new technologies afford, meeting with customers digitally and just changing the way we operate in the face of it -- of unprecedented times. And I feel -- we feel very good about sort of our ability as a company to deal with adversity and deal with change. And then especially given our deep -- obviously, as a technology company, deep investments in technology ourselves.

I think you obviously have a pretty big inside sales team, and many kind of ask about the go-to-market and how you continue to stay in front of new clients right now. I would assume that you're leveraging your technology. You're using an inside sales team. But in terms of the go-to-market, how you approach the team in this environment, to making sure they're staying engaged? What -- you have these virtual summits. What other things have you kind of found useful to stay and engaged at this point with clients?

I think the main thing we're trying to do is [indiscernible] and make sure we're there for our customers. We're dealing with a lot of business challenges they didn't anticipate before. So we start every conversation just asking, how can we help? Because I think this function in the short term, we just need to make sure we're there as the trusted adviser for all of our customers. And then, I think we're -- I think over the medium term, as we sort of settle into this -- we're working from the home environment for this current period of time, is making sure that we're there with the tools and technologies our customers need to continue to do business in this environment. And that's sort of the stage we're taking. We're trying to be humble trying of focus on our customers' success and trying to listen. And again, trying to sort of evaluate the system day by day, and just make sure we're there for all of our customers.

Yes. There are a few questions just around the M&A strategy. And I know you said that you hope to take a break after a pretty big period. But I think many are kind of observing a lot of the asset prices have come off. And given some of these changes, does that change your philosophy or not about trying to take a break in the short term?

It doesn't change our philosophy, first of all. Our philosophy, as I stated, which is we're really focused on integrating our acquisitions. And -- but I do think that our philosophy of having a beginner's mind is enduring, and there's an incredible opportunity, we would always look at it. We're never going to say no to look at an opportunity. And I do think that in this environment, opportunities may come up. But it doesn't change our underlying philosophy. And I think that's important to say.

Great. And then many are kind of thinking about just the marketing in Commerce Cloud, and just trying to understand how that's priced. Is that based on volume? How are you approaching customers with those discussions around the pricing?

You're asking about pricing of what? I'm sorry, I missed the first part.

Yes. So for marketing and commerce, how you work through the pricing strategies with clients in terms of kind of what you're basing your prices for your services on for them? But just more around that go-to-market and the pricing structure of that individual line?

Yes. So I think we have a variety of our platform, we have a variety of different ways of pricing our products for the majority of our commerce capabilities. It's really proportional to the gross merchandising volumes that our customers are doing on the product. And that's really the basis of the value we get from it, and that's true with most of our digital products. But as -- we've talked about in a lot of calls too, our relationships with customers are pretty nuanced. They're not all just about 1 technology. They're usually a real Customer 360 solution, so it really varies customer to customer.

One bigger question about the competitive landscape. Adobe talks a lot about the Customer 360 as well. And I think there's been a lot of confusion about kind of where they sit, where you sit, they've been pretty clear to investors they actually use your technology internally to run Adobe sales team, so they actually use your product. But I think there's questions around some of the marketing, digital experience solutions that they have and how overlapping. It seems like a lot of companies use both. But curious to get your view, and I think many are trying to understand kind of where they're at and where you're positioned.

Yes, that's a good question. So our product strategy is oriented around this concept of Customer 360, which is can we build and integrate an experience around your B2B and B2C sales? Your B2B and B2C service -- customer service? Can we integrate with field service, your digital service, your call centers into 1 platform? Can we bring together your marketing capabilities, your commerce capabilities, analytics, integration, communities, all by vertical? And really, our value proposition, as we talked about is, many customers start with one of those capabilities and expand with Customer 360. But our most-exhausting customers are really integrated in all these things. They have a digital marketing experience that's integrated with e-commerce experience that is deeply integrated. If you have a return or you have a customer service problem, they're all integrated on 1 platform, because that's really what it means to build a seamless customer experience and connect with your customers in new ways. And when I look across the portfolio, say, every one of those clouds has unique, and oftentimes, very great competitors. But I would say what really sets us apart of, not just companies like Adobe, but sets us apart from the rest of market, is really the completeness of that solution. And I guess bringing it up, because when you talk to the CEO of, say, a retail company, she doesn't want a digital commerce product, she doesn't want digital marketing products. She wants to compete with Amazon. And to do so is really about an integrated experience across the entire customer life cycle from demand generation to a loyalty program for their customers. And that's really, I think, our enduring competitive advantage, is this focus on Customer 360. And really the completeness of that solution. And so on the margins, we'll obviously compete with a number of different companies, but I think, as it relates to our overall Customer 360 strategy, I think we really stand apart.

Yes, there was another question, just on how do you differentiate CT from CRM in C360? Are you consolidating to one database? How does this work? And it may seem too hard to explain on the conference call, but certainly, I think there are a lot of questions around how this all works and how it all ties together.

Yes, I'll do my best, and happy to take follow-up questions. I'm not giving you the architecture guide here. But look, when I think about CDPs, it stands for customer data platform, it's a big trend in marketing right now. And I'll give you my color commentary on it, which is, I think, for a long time, marketing has been defined just by engagement, the explosion in these channels, from social media to texting into quick notifications and really the explosion and the engagement there. I think with CDPs, marketers, CMOs and B2C companies broadly are really saying, I want a single source of truth for all my consumer and customer data. And to date, there really hasn't been a great solution to that. There hasn't really been a CRM capability for consumer companies, large-scale companies. And I think that really uniquely positions us as a company to deliver that with our combined experience in both CRM and the B2B space and our, I think, unique scale on B2C technologies, like our Marketing Cloud and our Commerce Cloud. And that's what we're investing in that area. Our CDP is called Customer 360 Audiences, deeply integrated into all of our capabilities. And I think broadly, it's not -- some customers really want to put everything in one database, some people want to use technologies like MuleSoft to aggregate data from around the enterprise. I think every company approaches it in different ways. But I think the main thing that people want is a single source of truth, that's Customer 360. And that's why that strategy and that new, I think, hot investment in technologies, like CDP, really plays into our strategy quite well.

A lot of questions about Tableau. Next steps for integration. And I think there are a lot of questions to that, you've had analytics, like what wasn't working in the analytics solution that made this happen? I guess, it seems like some of this could actually be very complementary, what Tableau brings versus what you've originally built.

Yes. So this quarter is, practically speaking, really our first quarter of integration due to regulatory approvals obtained in November. But we're sort of really full speed ahead, focused on integrating our go-to-market capabilities, like territory accounts, sales, competition, just make sure we're getting alignment across all the teams so that every single one of our mutual customers can find out about our integrated value proposition. Speaking to the broader question about where it sits in our other capabilities, the analogy I would draw is really MuleSoft. So MuleSoft is a general-purpose integration platform. It can integrate any product to any other products. Not just Salesforce. It can integrate SAP to Oracle, right? And that's why it's such an amazing, robust platform. But by bringing it into Salesforce, we're able to take that capability, bring it into our strategic C-level conversations and say, hey, if you want to build a Customer 360, this is a strategic capability. You have to integrate all those legacy systems, which can really accelerate that digital transformation. And you've seen that acceleration in Tableau's business because it takes 1 technology sold to 1 buyer, brings it into a more strategic value proposition. And it really, 1 plus 1 equals a lot more than 2, in that case. Tableau is just an incredible product, an incredible community around analytics. And much like MuleSoft, it's really technology-independent in a really, I think, differentiated way. You analyze data in the cloud, you can analyze data on-premises. And it's really designed to be empowering. So as easy to use as a tool like Microsoft Excel. So it really -- all of us can be analysts, and it's not relegated to simply a team producing a dashboard, but it's really empowering concept. Our -- what I've heard from customers over the past 2 months, and I've talked to a lot of teams, a lot of CEOs about this too is, in this age of digital transformation, of which our technology has played a huge part, we're just producing much more data than ever before. But most of the CEOs I talked to say, I know I have more data than ever before, but I can't say with a straight face I'm getting insight from it. And we really think that Tableau is an incredible asset for these companies going through these transformations to say, how do you create a culture around data? And when you're building this Customer 360 and you have all this new data about your customers, how can you empower everyone in your company to actually derive insights from those data and make better decisions? So you think that, that's a really wonderful, complementary value proposition. And like MuleSoft, I really hope that, by bringing these things together into a value proposition, where we're trying to help our customers transform their businesses, grow. It's really unique in that context.

I had one last question, then we'll go to a couple from the line. Again, if you want to e-mail me, you can. One of the questions we've gotten is, I think, obviously, no one saw this coming in the overall environment. But many companies were kind of caught flat-footed and don't have an agile infrastructure. And so many have said, we all go back to an office building at some point that the move to cloud is only going to accelerate. It's been moving, but does this create a bigger tailwind that we maybe have never seen? Because companies just don't want to be caught in this position again if this happens, and hopefully, it never happens again, knock on wood. So just your thoughts in terms of how you think this catalyzes this move to cloud.

Yes, it's a great question. I mean, obviously, in the short term, we really don't know how it can impact customer spending, just because we really don't know the scope of the short-term economic impact, and I just want to acknowledge that. Long-term goal, I do think that the companies that are surviving right now are the ones that have robust digital strategies, who have what you described as agility, which I definitely agree, which is, do you have a customer experience that exists in all these different media, so that when something like this happens, hopefully not globally again, but even in a region, you have alternative ways to engage with your customers, grow your businesses. And so I think that, as companies come out of this eventually, and they'll be looking at what would have mitigated the business disruption that we're seeing right now, and the answer for most businesses will be an investment in these digital experiences, to build a Customer 360 that is not wedded to a single customer touch point, which is really flexible, durable, exists in multiple channels, especially digital channels. And I think, I believe that it's going to create that sense of imperative so that as companies look to be prepared for the kind of business disruption we're all experiencing right now.

That's great. Tiffany, can you poll for any questions?

[Operator Instructions] There are no questions over the phone at this time.

Bret, we really appreciate the time. There have been a lot of questions on the e-mail hotline. A lot of these around the overall environment. And I know we can't really address those, so that's the predominant list of questions. But thanks for sharing your perspective today. And thanks to Evan and the rest of the team at Salesforce for hosting. So we appreciate it, and look forward to staying in touch.

Thank you for having me.

Thanks, everyone. Have a good day.

This concludes today's conference call. Thank you for your participation. You may now disconnect.