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

Hello, and welcome to Investor Day 2020. My name is Evan Goldstein, Senior Vice President of Investor Relations. We have a great lineup for you today. Mark Hawkins, President and CFO, and I will begin with a financial update and Q&A, with a guest appearance from Amy Weaver, President and CLO and our incoming CFO. We're excited for you to get to know Amy. I've had the privilege of working with both Amy and Mark for many years, and I think you're all really going to enjoy working with her. Following that, we'll have a Q&A with Bret Taylor, President and COO; Gavin Patterson, President and CRO; and Stewart Butterfield, CEO and Co-Founder of Slack. We will then end the day with a Q&A session with Marc Benioff, Chair and CEO. As a quick reminder, if you're submitting questions, please be sure to include your name and firm as you submit them. But before we begin, a little bit of housekeeping. In today's discussions and discussions like these, we may make forward-looking statements. These forward-looking statements are based on risks, uncertainties and assumptions. These risks, uncertainties and assumptions can be found on our website, www.salesforce.com, and in our most recent filings with the SEC on Form 10-Q. Our goal today is talk to you about our path to $50 billion. It's a path of scale and growth, and Salesforce has some unique advantages to help us get there. Mark will share with you the view of that opportunity, and then I will share with you how to capture that opportunity. And with that, let me introduce Mark Hawkins, President and CFO.

Well, good morning, and welcome to the Salesforce Investor Day. Last week, we started Dreamforce. And of course, this year is a little different across the board. We know that. But really, a great start to Dreamforce. And I'm so glad you're here today at the Salesforce Investor Day 2020. This is my 7th Investor Day at Salesforce, and it's an honor to be here and speak with you today. Our theme for today is around a generational opportunity, and it's really building on our core strength. That is fundamentally the opportunity that I want to talk to you about. We're going to go through it in great detail. And I hope you'll agree, it's really a very unique opportunity. And of course, when you think about an opportunity like that, you need to define the opportunity, and that is the fact what I'm going to do. But I'm so glad you're here today. Look forward to sharing a few insights with you and talk about a company that has -- it's the right company at the right time in a pole position with the right customer-centric vision and customer-centric values. And really, in a world where there's a secular tailwind helping us, including the digital transformation, to go really serve the customer in an even broader and bigger way, and we really see this as a generational opportunity. So I'm looking forward to talking to you a little bit more about that. Where better to start than thinking about the future enterprise and what does that look like. If you look at this chart the first thing you notice, on the left, is you see the global economy, and you see how the economy is bifurcating between a GDP-driven digital economy and a non-digital economy, and how rapidly it's going to digital. That, of course, we see, we feel, we know that the world is going digital, the economy is going digital, companies are going digital, customers are going digital, families are going digital, individuals are growing digital. It is a huge secular trend, and it's a tailwind to Salesforce. And it's contributing to this generational opportunity. If you look to the right of the chart, the first thing that you'll notice is that you'll notice what enterprises are doing to prepare themselves in the future is it's a little closer to home. They're looking at information technology spend in the world. And they look at the trillions of dollars that are dedicated to non-digital transformation IT spend versus digital transformation IT spend. And again, you can see that inflection point, that huge secular trend that we are right in the center of, and it really is a profound and durable opportunity for us in the future. And we're very excited about it, and we are well positioned to help our customer in this change. Well, that's great. We know that we're the right company at the right time. We see a great secular tailwind economically and also within our industry. And then you come down and say, okay, what about, what is the c-suite of our customer need? Well, IDC, I did a great survey here recently during the pandemic time and talked about here are the things that are the prioritized key things that the C-suite needs right now in this environment as we look to the future, and it's really been reprioritized. But the first thing you'll notice is that 7 out of the 9 of these top customer survey C-suite needs are met squarely by Salesforce. And so that puts us not only with a great opportunity, a secular tailwind, a great market, but also adjust the skill sets now, today to serve the customer and help them to transform and prepare and modernize to -- up for the future of their enterprise. And in fact, that is why they're calling Salesforce today because we have the capability, we have the focus, we have the vision, and we're going to talk more about that. So speaking about that, one of the things I've talked to you about before is how I believe values drive value. And in fact, we have very ambitious vision grounded on that whole premise, and it's grounded on a vision that I want to talk to you a little bit about. And that vision is something that drives every employee in the company. We're leading with our values. Salesforce is the trusted guide, accelerating customer success in the new, all-digital work-from-anywhere economy with Customer 360. We are #1 CRM, #1 analytics and #1 integration company. And now, of course, the #1 engagement and collaboration and communication company with Slack, which we couldn't be more happy to have. But here, that is our vision. And when you look at the values of trust, customer success, innovation and equality, those literally have guided us all the way. They help us as we begin to find our pathway to this vision to fulfill it and really drive success with it for our customers, first; and for us, second. And so that brings me to something that is one of the most important parts of our company today, which is Salesforce 360. And when you think about what that is doing, I just want to talk about that a little bit. The first thing you'll notice is that the customer is in the center of everything. Values drive value. We're doing everything we're doing with an imaginative understanding of the customers' need. That's what we're doing. And we're applying that by listening intently to them and then applying innovation with a customer-centric approach to go make them successful and to give them a 360 view of their go-to market, of their customer-facing capabilities and beyond. And in fact, when you look at this, we started with Sales Cloud, we listened to the customer, we keep building out, in Service Cloud, in Marketing Cloud, in e-commerce, in analytics. And you can go all the way around but what you learn is that the customer needs help as they prepare for this digital world to be a future enterprise and we're just the company for them. This is a huge differentiator. I want to tell you, I've been at the World Economic Forum many, many times. I've been all over the world when I could travel. I talked to customers virtually every single day at the C-suite level, and I have never found one that said, "Hey, Mark, I want 8 different partners to help me get a 360-degree view of the customer." That's not the way they think. They want a single partner, a strategic partner to help them modernize and prepare for this digital world that's happening so rapidly before us. And we're just the company to do it. We have a unique offering with Customer 360 and everybody else is offering a point solution. We have a huge differentiation, and that's helping our customer. And when we deliver that, that's helping our company as well. So then we look at, okay, that's great. How big is the opportunity? And the opportunity points us right to the total addressable market. And as we've been listening to the customer and as we've been building out every step of that Customer 360, all the way around that circle with them in mind, with innovation in mind, with customer success in mind, it's led us to expand our portfolio and expand our TAM. And today, we're weeks away from FY '22. Weeks away. And here, we're talking about in FY '25, a $175 billion TAM in a fast-growing market, one of the most attractive parts of enterprise software, which is one of the most attractive parts of technology in the world. That is a huge opportunity. That creates a generational opportunity for those that are successful. And we are in the pole position to do that with our Customer 360 differentiation, with our vision, with our values and our customer-centric focus and with the digital tailwind to help us as the world goes digital. We're just the one. So I am very excited about this. It's a huge opportunity, and we're just the company to deliver on that. But let's break that TAM down. Let's transition and break it down cloud by cloud because there's a vision and values, and then you need the pathway to the vision. And in fact, we have the pathway. And I want to talk to you about that for each of the different clouds. When I look at Sales Cloud, of course, that's a great place to start, right? That's where we began and change the world with the first SaaS application in the world with our innovation and our pioneering mindset. And of course, we've never looked back. When you look at to the left, you can see all the progress we've made with the blue bars, and we're super proud about. I really truly am, of our Ohana, our 55,000-plus team that are maniacally focused to help the customer. And yet what I noticed when I go forward with that TAM, is that even in the most established market in the world, in our space, there's tons of room to run. And that is what excites me. There's tons of room to better serve the customer, to help them be even more successful in how they connect with their customers. So let's break it down into more detail. When I look to the right, I look at an offering that's gone from a system of engagement -- system of record, system engagement to a system of intelligence that is super powerful and it's allowing a whole new way, a more modern way for the future enterprise to operate in the sales capacity. And you can pick any one you want. I like the revenue by cloud. You can go from CPQ to billing, to order management to PRM, we're offering modern solutions that help our customers be more successful. And that's one pathway. And I won't go through all these. But let's look at another cloud. And let's go pathway by pathway on how we're going to succeed over the long term. And when I look at Service Cloud, it's an even bigger market. And it's a market that we have been strong in for years and years. And again, if you look to the left, you can see all the progress we made. And all the innovations that we made is #1. We're #1 in service, the same way we're #1 in sales, because we're focused on the customer and the success and the innovation we're pioneering, we're delivering amazing organic and will complement within organic innovations to make sure their needs are covered. If I look to the right, I look at the growth opportunities, and you can pick whichever one is your favorite, but one of the things that I would say to you is the omnichannel engagement, when you think about uniting voice and chat, the messaging and bots is one example that's what a future modern digital company needs. And that's, in fact, what we're delivering. You can pick any of those. I like field service Lightning. We talked to you not too long ago, and we said we're going to get into this. It's now greater than $400 million of ARR, rapidly growing because we're meeting a need of a customer. That's another pathway in a great marketplace, super exciting. So let's look at Digital 360 next, another powerful opportunity. When we look at our marketing and e-commerce cloud. Wow, we -- again, same idea. You look to the left, you see all the great progress we're making as a premier asset, #1, #2 in the other markets, super strong in this market. And then you look and you go to the -- you start to see how big the opportunity is, the room to run, the room to innovate, the room to change the world in this industry by providing even better value and innovation for our customer. You can pick your growth opportunity on the right. But these are things that are the pathway to the future for us. Let me just pick B2B and B2C. We have both capabilities, and that is so critical in today's world. And then customer data platform. In a world where data requirements are changing every hour, and how does the customer build on all the knowledge and data they have and make it more valuable, we have powerful offerings to make the customer more successful. And that will be the key to our future growth. And by the way, with GMV growth in e-commerce, I mean, Q3, we talked about our strong core growth. 79% GMV growth. Super happy about that. And even more so, the ideas and the innovations for the future to help even better serve the customers. So there you go. Digital 360, lots of opportunity, lots of room to run, going back and forth between #1 and #2, but we see an opportunity to go and go and go there by serving the customer well and staying customer-centric. And then if I look at platform, and I like our platform capabilities, same setup. You look to the left, you look to the right, huge opportunity, huge progress. But what I like is the pathway, the pathway with the best ecosystem in the world. The best -- biggest B2B app exchange in the world to support our customers. And it provides extended reach, extended innovation, extended success for our customers. We have a series of SRIs that are so powerful, they extend our ability to serve the customer and to take care of them and then to grow as a result of that. And that is super powerful in that way. And whether it's low-code development, where you want to do drive and drop, clicks, whatever the case might be, so people can develop even faster, the platform is awesome in the sense that it helps our customers develop their apps even faster as well. So that's fueling a lot of opportunity. Look at companies like nCino who are part of our ecosystem. Powerful success there, and it just goes on and on. Including the employee apps, which are just creating great employee experience opportunities that, again, is part of our pathway going forward. But let's look at data. Data as a CFO is super important to me. I love data and I love the facts. And when I look at that, let's look at this chart of analytics and integration. And it reminds me of a couple of the M&As that we've created, combined with some of our own innovations. But you look at Tableau, you look at MuleSoft. When you look at that need to see and understand data and that need to unlock data, disparate data, and free it up so it could be utilized and bring value to running a business. And then you apply Einstein for predictiveness. You can see and understand, you can predict, you can open up the data. That's a universal challenge across all systems and all environments, and we're there to help people. And there's just so many opportunities. And by the way, speaking of MuleSoft, it's got a $1.2 billion annualized revenue at 37% growth rate. Great additional asset, and just a great example of we know how also to do surgical M&A and do it and be successful with it on a repeated basis. And really pleased about all the great work the team is doing in that respect. So anyhow, lots of opportunity, lots of synergies and all focused to help the customer in a clear pathway to the future of growth and serving. So that brings us to when you stay focused on your values of innovation and success, when you stay focused on the vision of really serving the customer in a centric way and really aspiring to do great things, how are we doing? Well, here's third-party data. We've been in the Magic Quadrant for years and years and years. Not with one product, not like most people are out with a point solution, across our Customer 360 offerings. A Magic Quadrant leader across the way in all of our offerings. We've had -- Sales Cloud has been 12 years in a row of recognition. Service Cloud -- excuse me, 14 years in a row; and Service Cloud, 12 years. That is powerful. And I just want to say, these are best-in-class offerings because the values drive value. When you value innovation and you keep it center on the customer, you get this kind of recognition. And that's part of the pathway to a generational opportunity and a huge TAM in an unfortified hill that we are just the company to go take care of and help and serve and win. But it's beyond horizontal offerings. It's also around industries and verticals. And we talked to you years ago about how important it is to be able to speak the language of the customer, but even more than that to be able to deliver products that meet their need in a vertical way. And in fact, we're doing just that. Today, our ARR is more than $2 billion and growing rapidly. And you can remember when we talk about we're getting into industries, and that is rapidly growing. We're very excited about that with lots of runway in front of us and expanding TAM. But when I look at the coverage, and this chart is set up to show by industries where we covered with our classic Salesforce activity. Then Vlocity, oh my gosh, David Schmaier, a great CEO, joined us. We're a destination employer for great entrepreneurs. And we have lots of coverage together. But there's yet an opportunity for more coverage, which is, again, more of a pathway to growth. We have expanded benefits. You know that when we -- and based on last year's Dreamforce, industries have higher ASPs, they have lower attrition rates and they expand our TAM. That is going to help us on the pathway to this generational opportunity. And so the other part that I really want to call out that's directly linked to industries that's trying to go deeper in covering the needs of the customer. But if we go deeper with our ecosystem, including our ISPs and our app exchange, as noted, biggest B2B app exchange in the world, all designed to help the customer with innovation and success. The ISPs are so powerful. And you look at the coverage here. And I really like this chart actually. Because I'm a big fan, and you've heard me say again and again, better, better, never done. That's great. We have coverage. Some areas, we have really high coverage. Some areas, we have medium coverage. Some areas we have okay coverage, and some areas we have minimal coverage. I focus on where there's areas for improvement, and we have it. We're excited. And even though we have the best and biggest business-to-business app exchange in the world, it's about being better further on behalf of the customers. This allows differentiation. This allows lower attrition rates. This allows customer success. Again, values drive value with more than 5,000 app listings. And by the way, that just expanded with Slack, which we're delighted about. We're just scratching the surface on this opportunity. But now let's talk about a couple of other things that are pervasive across all of our clouds as we deliver Customer 360 differentiation to our customer. And then you start to think about things such as Einstein predictions. I remember how proud I was to talk to you when we actually crossed 1 billion predictions per business day. It was like, "Wow." And that was not long ago as you can see on this chart. And here we are today, 80 billion predictions per day. And I'm here to tell you, we're just getting started. This is what our future enterprise looks like. These are the kinds of things people need. These are the kinds of things they want, where they want to unite voice and bot and all the omnichannel capabilities to meet the needs of a changing world and a digital world. Very, very exciting. That is the beginning of a trend that will extend and benefit all of our customers across all of our clouds. And how do we get there? With innovation. How do we get there? Innovation focused on what customers could actually use and need. And so that brings me to a point in the discussion where I've talked a lot about the secular opportunity, how the economy is changing to our advantage, how we are extraordinarily positioned with capabilities that are not someday. They are today, which is why people are calling us. And then to look at an expanding TAM and by cloud, the pathway to the future of serving our customers and really tackling that fortified hill of that TAM and deliver even more durable growth in a generational opportunity way. But I want to summarize something here. When I think about like, "Okay, well, how did we get here? How do we get in the pole position of the most attractive market in software?" Let me break it down for you in a competitive advantage that really underpins this generational opportunity: Values drive value. Focus on the customer and innovation, the trust, all in the ethos of equality drive tremendous value in everything we do organically or inorganically. Customer success and innovation, we've talked about. M&A execution, we are actually very good at this. And I say that only based on fact. As a CFO, you look at what we've done with ExactTarget. You look at what we've done with Pardot as a derivation of ExactTarget. You look at what we've done with Demandware and MuleSoft and Tableau, and we're so excited with Slack joining us. Think about best-in-class go-to-market capability. Obviously, we're in a large and growing market to capitalize an entrepreneurial spirit where entrepreneurs stay at Salesforce because this is an entrepreneur's company. We are focused to serve, do well while doing good. We are stakeholder capitalism. We need to take care of our shareholders. We need to take care of our customers. We need to take care of our partners, our planet, our community, our employees, everybody, that is a focus that's going to generate more long-term -- wealth creation over the long term. A culture that is a destination employer culture, a transformation that is the wind in our sales. And a Trailblazer community where you have literally millions of people that are being trained that work for our customers to make our products successful with our customers so that they can make their way to be digital and make their way to have the capability of a future enterprise, and then an ecosystem that's unmatched in our market space, all designed to deliver technology success for our customer and better financials in the end. That advantage is what got us here today. And the pathways you see are what are going to get us going forward. And that results in being a global leader in CRM. And in fact, I talk to the entire employee population to say, the customer first. When they succeed, someday we will succeed. And that's why we're maniacally focused, and that's what happens when they're growing, when they're healthy, when they're getting value, we get to grow. And guess what, take a look at this again by IDC. This is not my chart. This is their chart. This is my favorite chart I've been showing you for years because, at the end of the day, customers are voting with dollars. What kind of value are they getting? What is this persistent trend that has gone on for 20 -- nearly 22 years? How is it happening? We understand the competitive advantage I just talked about, and this tees us up for a generational opportunity because it is all about the future, and that's what we want to talk about even more, and we will talk about even more. But when I think about that opportunity, let me put it in a quantitative term. I'm talking about $50 billion-plus in FY '26. I'm talking about a company that has been fastest to $5 billion, fastest to $10 billion. I remember when we were stretching to try to go from $5 billion to $10 billion. Fastest to $15 billion. Fastest to $20 billion. And we are excited about the $50 billion aspiration. And remind you that we're weeks away from the beginning of FY '22. It's a very exciting opportunity. That's what we're pursuing. And you can see the pathway. You can see the advantage. You can see the pole position, and we need to execute relentlessly on behalf of all of our stakeholders, including all of you. So that's what is compelling. It's exciting to serve the customer. It's exciting to serve the shareholder, and that's our ambition, and we're -- that's our focus. Values truly, really do drive value. And so at that point, I hope you can see the defining of a generational opportunity. I'm very excited to talk about that. Now I want to turn to capturing the opportunity and then turn it over to Evan Goldstein.

Thanks, Mark, and thanks to the broader investment community for welcoming me into what has definitely been a unique year. I look forward to once this pandemic is over, meeting many of you out on the road. My goals today are twofold: first, update you on some metrics and introduce some new analysis that we've done; and second, touch on subscription economics again and talk about why we believe investing in our go-to-market resources is the right thing to be doing to address the opportunity that Mark outlined. Before we get started, though, I think it's important to revisit the cube. This is a graphic that you've seen before. It's how we measure and how we think about the business. We began 20-plus years ago selling Sales Cloud in America. And now today, we sell a best-in-class portfolio that has global reach and addresses customers of any size. And we use a number of different metrics to measure this. Now the 3 metrics on this slide are metrics we've shared with you in the past. And frankly, the big takeaway from this is that we're on track. As of the end of Q2, there have been no major changes in our new logo versus installed base mix. And multi-cloud adoption and international expansion continues on the progression that we've shared in the past. One highlight that I would call out is as it relates to land and expand. Going forward, we're going to start including Tableau, and their mix has shifted a little bit more towards installed base. And so you'll see that mix shift in numbers we report going forward, and we've sort of called that out for you on the box here. So digging a little bit more into land and expand, let me show you a new analysis we have for you this year. We've gone back and done a cohort analysis of new customers over the last 10 years, and really wanted to understand how their spend with us has changed over that time. Digging into the FY '17 cohort, we've actually seen that their ARR has doubled with this over that time. And it doubles with us in 1 of 2 ways: one, spending more money with the existing products they have, whether it's incremental licenses; or two, more clouds. And what we've actually seen is that they've done both. And the number of clouds that they've added, they've actually increased the number of clouds by double, going from 1.8 to 3.6 on average. But I think it's also really important to see a really crisp example of this, so let's take a look at one of our longer-tenured customers. This is a large technology company based here in the Bay Area. They began their journey with us at Salesforce in FY '06 with Sales Cloud and less than $3 million of ARR. 15 years later, they're one of our top customers. They have 6 clouds and over $70 million of ARR. This is the type of experience we want to have with our customers. We want to be giving them the best-in-class product that they see great return for. The other thing I'd call out on this slide is the role that M&A can play. When we're acquiring the best-in-class assets, we're providing the best-in-class experience that our customers want. Now we've talked about enterprise a lot, but we can't forget about small businesses. We've done a really similar analysis, but we've opted to go back a little bit further because of the nature of the churn associated with the small business. Over the 5-year time horizon we've outlined here, we've actually seen small business ARR grow at 36% CAGR over that time. I would be remiss if I didn't talk about the attrition. We know that the attrition in this business segment is going to be higher, right? It's very much into sort of a venture capital portfolio, right, where you're getting some of those big wins. But for us, starting the journey with customers early is critical, right? We want them to graduate at different phases of their development with us. We have a platform and a product that enables that. It's very different than something like a GL where you start with Excel and then go to QuickBooks and then eventually migrate your way to a large-scale ERP solution. Those are a lot of switching costs, and we don't want our customers to have that experience with their CRM. And that's why we are focused on customers of any size. In fact, of this cohort that we did, you can see that 3 of those customers have actually grown at 200% CAGR. And some of those names you probably recognize. Totally, that gives you a sense of how the business is performing, so let's go back to the cube, and let's talk about subscription economics. Now I'm pretty passionate about the cube. As many of you know, I spent 8 years in FP&A before coming over to IR. And this is, in many ways, the language that we speak in FP&A at Salesforce. We talk about cost to book. We talk about cost to serve, we talk about attrition. This is really how we think about it. And we believe very strongly that having the best-in-class portfolio and if our economic margins are either holding or improving, we should continue to invest for every dollar of ARR. So before we dig into some metrics, let's just recap how we think about subscription economics. Subscription economics relies on 3 metrics: attrition, cost to book and cost to serve. We calculate lifetime revenue by one divided by attrition. Our cost of book is our sales and marketing expenses divided by incremental ARR. And then our cost to serve is all the other expenses related to supporting that revenue divided by your lifetime revenue. You sort of put all that together, you could calculate your unit economic dollars, divide that by your lifetime revenue and you're with your unit economic margins. When we make investment decisions, we use subscription economics to make those decisions. And we know that could create pressure on the short-term P&L. But understanding the trends of these metrics is really, really helpful. So let's go through some of them. So here, we have seen cost of book increase over time as we made investment in go-to-market. We've seen cost to serve sort of flatten down a little bit as we found some efficiencies in G&A. And then we've seen attrition improve over that time horizon. Putting all those metrics together, you actually have seen unit economic margin improve. But understanding how all these interplay is really critical in how we resource and allocate. So let's talk a little bit about cost to book. Now we have said to you all in the past that we're focused on enterprise, international and verticals. Now when you need to speak the language of the customer or where you need to be where the customer is, it's going to require additional investment, and we've made that investment. And you could see some of the trends here on this slide, right? But again, it's important. We believe that this is the right choice. We are no longer selling one product, one workflow in one country. But the benefit of this investment is attrition improvement. Here, if you take a look at our attrition in enterprise industries and multi cloud, you actually see them lower than our FY '20 average. And that is actually what's been driving our attrition down over time. We are getting higher quality ARR through these investments. Now when you put those 2 metrics together, you really understand how this improves unit economic margins. Our cost to book has increased 3% CAGR over that time, while our attrition has declined 7% CAGR during that time. We have a broader portfolio. We've made critical investments in go-to-market, which has yielded better ARR business. And that fundamentally results in lower attrition. We become stickier, and we become a customer adviser. Now when you put those altogether to calculate subscription economics, this is what we've shared with you in the past. When we started talking to you, we talked about mid- 30s. Last year, we updated you that we'd be at about 40%. Now we expect FY '21 to have some slight pressure as it relates to the pandemic. We shared with you earlier this year, we expect attrition to increase, but we believe this will be transitory over time and expect to get back to 40%. However, our decisions to maximize for subscription economics has created some impact on the short-term income statement. And you see that, you see our sales and marketing flat over time. But we fundamentally believe that this is the right thing to do for the annuity and to help drive our revenue growth. Back to you, Mark.

Well, thank you, Evan. Thank you very much, and really a nice job on your part. I really appreciate the update that you gave. I'm here to wrap up. I have a number of things I want to say in wrapping up that I'd like to impart with you. When I look at our track record of execution, there are 3 things that I think about, and I have always thought about and talked about it with you for all of the 7 Investor Days: growth, profit, cash flow. And we've talked about the growth opportunity and the progress we've made. You can see -- to the left, you can see our operating margin on a non-GAAP basis, and you can also see the revenue in the chart. You can see the progress, obviously, and our revenue has been dramatic. You can see that as we grow, we're creating a lot more operating margin dollars and we have just very modestly been improving the operating margin over the years and always with the ethos of better, better, never done. But trying to balance of course, this unfortified hill, this $175 billion TAM, this incredibly sticky opportunity that truly is a generational opportunity for whoever captures that, and at the same time, continuing to deliver more profit dollars, and inch up the operating margin, again, over the years. And I remember in FY '14, before I joined, we were at 8.9%. This year has guided at about 17.6%. It's a progress. We realize that. We're always trying to balance that, and we can always do better, we realize that as well. And then, of course, the cash flow. You can see, again, the cash flow bar and all the progress we've made. And yet there again, I think there's opportunity to look for ways to continue taking this to the next level, looking for continued efficiencies. That is always on our mind. We're trying to balance these 3 things of growth, profit and cash flow. And we know how important all 3 of those are to you. And I want you to know that that has been ever-present in my mind and I have been very grateful for the chance to dialogue with you, and it's something that we always try to convey in all decisions is the balancing of those 3 things. I wanted to talk to you a little bit about next year. Of course, you know at our IR days we always focus on giving you kind of our outlook strategically. And in our calls in February, we always talk about the actual specific budget for revenue. We've given you a prelim view for revenue already for '22, which shows the strength of our core. And then also, the additive amounts of our acquisition of Slack, which we're very excited about. We'll talk about cash flow and profitability when we get to the Q4 call as we always do. But I wanted to talk to you a little bit about some dynamics there just so you could think about that before we get there just in the spirit of always putting forward information that I hope will be helpful to you. You can see our guide implies this year about 17.6% operating margin on a non-GAAP basis. And you know that we'll expand our core. We always do. That's our aspiration, I should say, always to do that, and we execute on that. And then, of course, because we just had this significant acquisition, there'll be M&A dilution in the form of, of course, we know there's purchase accounting. There's transaction cost. And then there's also the business profile of the business that we're bringing on board before we improve it over time, which we do. And we'll talk a little bit about that. And then, of course, that all nets itself out around a range of what will be the actual expansion itself next year net of those 3 factors. And just want to call it out to make sure everybody is thinking about all those factors. And again, we're not guiding operating margin now. That wouldn't be the right time. Obviously, we need to get closer to the close. There's so many things that we're going to see and so on and so forth. But we will certainly do that. And we know that is very much top of mind for you. And therefore, it's top of mind for me, and absolutely want to do that and the cash flow. So I just wanted to lay that out for you. And I also want to pause for a minute because I know that anytime you see something, like a dilution item, it merits a discussion. And for M&A, I think we have talked about this before, but if you look at from '14 to the current year, if you take the 8.9% operating margin to the roughly 17.6% today, that's one lens of modest improvement over a long period of time. Not -- it’s kind of lumpy, not all linear, for sure. But what's important to know is when we take on assets like ExactTarget, or take on assets like Demandware or take on assets like MuleSoft or Tableau or other tuck-in acquisitions, there's a dilutive effect there and yet we've been raising the entire company's profitability. And so I want to convey to you is we're trying to absorb some of the best assets in the world, make them better and yet take our whole company up to a higher level. And we always know there's room for improvement. I totally get that. And at the same time, we're making some progress, and I'm excited about improvements. What I'm always excited about is always the focus on the future. But I want to call that out. I hope that gives you just a little bit of context, a little bit of framing. And we can only do this when we come from a position of strength with our core business. But I'd really like to end on something that really is on my mind, which is when you talk about a generational opportunity in the $50 billion, I think one has to put it in perspective. Has to put in perspective, well, one of the greatest of the great done in our space. And I think the people -- and when we think of the top 5 enterprise software companies in the world, and how does that compare to our $50 billion ambition. And here's how it compares. This is what I mean by a generational opportunity. We'll not only be fastest to $5 billion, $10 billion, $15 billion, $20 billion, $30 billion. We'll be the fastest to $50 billion. It's -- we're going to double the company again in 4 fiscal years from the '22 -- reference point FY '22 and that is an amazing opportunity. This is the team to execute on it. We have the vision. We have the tailwind. We have the values. We have the pole position. We have competitive advantage. We just need to execute both on this, and also continuing to make profit, modest profit improvements over time and cash flow improvements. And on that note, I'd like to thank you very much for your time, and we look forward to your questions. Thank you.

Thanks, Mark. Hope everyone enjoyed the presentation. So let's go ahead and open it up for Q&A.

Let's do that.

Thanks, Mark. So let's start off with our first question from Fred Havemeyer at Macquarie. With Mark transitioning out and Amy assuming the CFO role, should we expect a new perspective about Salesforce's growth and margin framework?

Let me jump into that. Thank you for that, and we're excited to have Amy on. I'm going to bring Amy into the discussion here at the end. But one of the things that I would say as a company, our growth has always been our #1 priority. And in fact, we're pleased to show you that with the $50 billion target in FY '26, I think you can see not only the generational opportunity, but the clear pathway. So that priority continues to be intact. Additionally, we always want to continue to make some operating margin progress organically over time, every year, being more efficient with our core and at the same time, continuing to try to move that forward. And obviously, M&A will have some kind of impact here and there during that -- over the course of the years. But our general philosophy is organically to continue to make improvement year after year after year and have a cumulative effect, much like I was talking about on the call. Then the third thing, of course, is cash flow. We want to continue to grow that, and both our cash flow and our free cash flow because we know that, that's a critical metric for our company. So I think that remains intact. Obviously, when Amy comes on in February and beyond, I should be talking a lot more about the future as well. But I would say you should think about this as a continuity of our approach.

Great. Thanks, Mark. Our next question is actually from several respondents. Does the $50 billion assume future acquisitions after Slack or just the current portfolio in Slack?

I'm glad you asked that. The $50 billion actually assumes what we have today and Slack, and that's it. And we -- because our core is strong, as we were articulating, and we have a huge market and a huge, fast-growing market as well, we have a pole position. We have the right products, the right market, the right team. We feel like this is very much doable for us to double the company yet again and achieve that target. Obviously, we have to execute. That's what we do. That's our focus. But that is only with Slack and our core, our strong core.

Great. Our next question is from Gregg Moskowitz of Mizuho. Thank you for all the detail. Do you think about the 40% unit economic margins as steady state? Or is the ceiling higher than that? I can go ahead and answer that.

Please do so.

We definitely think there's upside to that number, and it's about finding efficiencies in CTB, CTS and attrition. Obviously, in the short term, as I've mentioned in my presentation, we're focused on investing in CTB to sort of get every dollar of ARR, but there can potentially be upside as we think about those metrics.

Yes, I think that's right, Evan. And the one thing I would add is when you're in the pole position like we are in an amazing TAM that is fast-growing, probably the most -- one of the most attractive spots in all of enterprise software, and we have the kind of unit economics that you described and we have the right positioning, the right vision, the right values that are very customer centric, we should drive as hard as we can in terms of growing ARR because those unit economics are very attractive over the long term. That's what I would add.

Great. Our next question is from Kirk Materne at Evercore. Can you please discuss how Tableau is doing relative to your internal forecasts? And some of the learnings from a deal of that size that you could apply to Slack?

Sure. Let me take a run at that. Kirk, thank you for that question. We couldn't be more excited about Tableau and the thesis that we had with Tableau, the asset of Tableau, it's a best-in-class, unique asset in the world, great leadership team, great CEO with Adam Selipsky and the management team. And moreover, what we can do with that in a greater picture within Salesforce. And so that thesis is very much intact. Obviously, as you know, we ran to day 1 literally into the CMA, and then we rolled right into the pandemic. That being said, I think Q2, we had a great quarter in Q2. Q3, in fact, Q2 was even stronger than Q3. But then we have a great backlog and -- or pipeline, I should say, rather in Q4. So we're excited about that. And we just think that we're just getting started with Tableau. I'm very, very happy about that. And I think you should look at us and check in probably like second half of next year, I think we're going to just be -- it gives us even more runway uninterrupted by the pandemic or the large part of the pandemic. And also CMA, and we couldn't be more happy about the company being part of our company. Evan, anything you would add.

Yes. I'll add a couple of things. I think what we've learned actually from all of our acquisitions is the ability to execute. I think we started with a sort of exact target in terms of our large-scale acquisitions, our ability to use sort of our go-to-market mission. And then again, think about sort of the holistic solution that we're providing with those assets. And so I think that is a motion that's really become sort of part of how we approach M&A. And I think it will be that way with Tableau and with Slack.

I agree. I like the culture of Tableau. I like the product offering, the community of Tableau, the actual sheer product leadership and the innovation and the fact that values drive values. They're very customer-centric and such and we have a very good feeling about Tableau over the long play.

Great. Our next question is from Mark Murphy at JPMorgan. Can you help us frame up the possible long-term equilibrium for T&E and real estate spend levels versus pre-COVID? Any insight into travel volumes over time?

Sure. One of the things that I would say, Mark, thank you for that question is that we're constantly trying to reimagine everything. We're always trying to approach the world with beginner's eyes. We know in this new all-digital work from anywhere world, that the world is changing. It continues to change. And post-COVID, it will change again. We are constantly pressure testing and experimenting on how we can do more even in a post-COVID environment. We're making a lot of decisions today as we begin to think about a post-COVID environment, including we're doing some minor lease rationalizations. We're beginning to explore what that might look like in the future. And then the T&A, again, we've really experimented a lot because we've had to with the pandemic, and we'll continue to do so into the future. And to me, that -- it could be a potential source of fuel for the future as well. But we're going to take it one step at a time.

Great. Thanks, Mark. Our next question is from DJ Hynes at Canaccord. I was a little surprised to see that the sales cloud has underperformed TAM growth, FY '17 to FY '21, 14% versus 15% TAM, assuming I'm reading that correctly. Why do you think that's the case? Well, it's funny, when we were preparing all these slides, we actually had the same comment. We were wondering why that is. And honestly, I think it's a testament to the dynamic of that market. We have gained share in Sales Cloud, yet the market is still growing. So I think it's a testament to that market, how strong it is. And that's what I would say about that.

And I would say all that is true. And yet, also, when you look at even how big we are in Sales Cloud, you look at -- and the fact we're taking share continually, like you said, and we're #1, we'll look at the room to run. And as people go to modernize, it just is a huge opportunity. It remains to be a huge opportunity.

Great. Our next question is from Brad Zelnick, Credit Suisse. Why is 17% CAGR to $50 billion ex-Slack, the right growth rate? And what investment level is required to get there?

Yes. Thank you, Brad, on that one. We look at the overall opportunity going to $50-billion plus in FY '26. And we're really just proud of that opportunity. And all the work that the company and the entire team has put together, to put us in that kind of a position to do that, we think that, that's an achievable goal. And we think that our core is strong and it will lift us up to take us to that spot. And we love the Slack asset. You're going to hear a lot more from Bret and also Stewart Butterfield. And even Gavin Patterson is going to be with them, and we're going to talk about Slack and all we're going to do there. So we think that total number just makes a lot of sense for the company. And it's unprecedented. Again, we will be the fastest to $50 billion in our space of anybody in the world by a significant margin. That is, hitting that target will be the fastest in the history of software. So we'll yet write the chapters, again, not only $5 billion, $10 billion, $15 billion, $20 billion, on up to $50 billion, hitting that target would yet rewrite the software history. So we're excited. We think it's an appropriately ambitious number. And we feel like we've got the right products. We've got the right team. We've got the right customer focus. We've got the right partners to take us to that. And the right strategy in this all work from anywhere, all-digital environment. And we have the right secular tailwind, as I talked about at the very onset of my presentation. So we think that this is a very good target for us to pursue. And as far as resources, we will, again, continue to improve our organic capability in terms of our scale and efficiency in an appropriate way as we go to the future. And so that gives you some thoughts on our resources.

Yes. I guess the only thing I would add is, and I'll harken back to my FP&A days a little bit, is that we're pretty thoughtful about how we think we're going to grow. So I don't know what the question is 17% the right way, isn't that the right number? It's really thinking about the market itself. We spent a lot of time looking at TAM. We take a look at a lot of the ways, how do we invest in sort of those pieces of the cube to get us to that $50 billion. So that's kind of how I would really think about it. It would definitely be, as Mark said, sort of unprecedented to do it as quickly as we have. Okay, great. Our next question is from Raimo at Barclays. What are the greatest opportunities to help show operating leverage without hurting growth?

Sure. I think we have been showing operating leverage organically as demonstrated by taking on some of these dilutive assets and still taking the profits to a completely different level. And even when you look at the last 2 quarters, we delivered for the first time in the history of the company, over $1 billion of operating margin, non-GAAP in Q2 and Q3. And yet we're making investment choices this year to literally invest this year, the year of the pandemic, to help ourselves separate and be even more successful in serving our customers going forward. So we have made explicit investments that we've called out in the earnings call in that way. So I think we are getting scale. We'll continue to get scale. I think that we should continue to look in all aspects of our operations to do that. Evan, I thought you did a great job on the unit economics to show the -- we are very rigorous, very metrics-driven in terms of making sure that we preserve those unit economics at such attractive rates. And we look for areas. Of course, we've scaled the G&A. We'll continue to try to do that. Of course, you think about how we -- actually, service delivery capabilities are obviously great opportunities. And we'll continue to leverage real estate and travel and all the different pools of money to do the kind of trade-offs we need to, to make sure we're supporting the company's vision and the company's opportunity, this generational opportunity to go take an unfortified hill and hit $50 billion faster than anybody in the history of enterprise software, and I do mean anybody. And so I think we got a great opportunity. We have a detailed long-range plan, and we have some rigorous economics that we're using to guide us on this mission. Evan, would you add anything?

Yes. I'll just add a little bit more, and I'll do it because I know Mark and Amy are both here on the call. I was their financial business partner for many years, and I know that they are committed to finding efficiencies in the organizations in their world from a G&A perspective. And you could see that in our G&A as a percentage of revenue, though internally, we take a look more at sort of CTS per G&A function. So I definitely think it's the top of mind for us to think about, okay, where are those places that we can find efficiencies but won't stump growth, right? Because that is our priority.

Exactly.

Great. Our next question is actually from several people. What gives you confidence that you can execute to $50 billion?

Yes. I really like that question. What gives me the confidence is we are in the pole position. And we're literally separating from the competition by third-party data that was shown. We have award-winning products that are being driven by our values of innovation. We've been a pioneer that started SaaS applications in the world. We've never looked back. We will innovate organically. We will innovate inorganically, the combination, the integration. We've shown the ability, historically, to do that. We're looking forward to with Slack to just take Customer 360, which is a huge differentiator in a world where customers don't want point solutions. And adding it to the best engagement collaboration asset in the world and that opportunity together, we believe, is just unprecedented, and I think it's going to help our customers immensely. I think that's part of it. I think our partners, our partner set is great. The ISV capability is the biggest B2B app exchange in the world. I think that's there. I think we have a digital transformation that is literally, as I showed at the onset of the presentation, wind in our sails for years to come. So it's a great market and a company with the right vision to get there.

Great. Our next question, I'm going to read this exactly, Brent, it's from Brent Thill at Jefferies. Dr. Hawkins, great run. On commerce, given massive spikes in volume, can you explain how you benefit from economics, shared economic model with clients or another model?

Yes. Thank you so much, first of all. And yes, the last thing I was going to say, just before we get into commerce, and thank you again. But I just also want to say, don't forget, we've been doing international expansion. We have outperformance. Our core is so strong. Those are all the kinds of things that are going to lift us to this long-term target, which I'm excited about. Commerce is really kicking into gear. I'm glad you asked about that. Again, back to Core, our actual -- we processed, I think, 31 million digital orders last quarter. Our GMV grew 79%. And actually, there's a latency between new business and the actual revenue that will show up over time as well, just due to the nature of our Commerce Cloud model. But we're very excited. And again, that's a great example of what customers want is they want sales capability. They want service capability. They want marketing capability. They want this digital e-commerce capability. They want the analytical capability. They want the data integration, and they want the collaboration capability to take them to another level in a world where more apps are coming, and the integration layer where things like Slack are going to be even more helpful for all applications. So Commerce Cloud is a key part of that Customer 360 wheel, that differentiator that's literally allowing us to separate. And I think we love the way that's unfolding. I think Bret will be here shortly. You can talk to him a little bit more about his thoughts on that. But we like the stats and the numbers they're putting up. And thank you again for the nice comment.

Great. Our next question is actually from several respondents. What is your long-term expectation for attrition? So let me go ahead and take this one. I think it's important just to level set on how the model works. And I think sometimes people forget it or they -- I think, in many ways, they take it for granted, and we live this every day. It's really simple. You start with sort of your starting revenue, you subtract out your attrition, you add in your new business, and that gets you your ending revenue, right? Internally, it's A minus B plus C equals D. I present this a lot when I'm training sort of nonfinance folks about the power of our model and how important that is. And so I think it's really important to level set there. When it comes to specific question about attrition, we do expect it to continue to come down, as I said, investing in sort of enterprise and international and multi-cloud gets the benefit of that. Where that floor is, I don't know. I'm not really sure where that -- where the sort of the line sort of hits the asymptotic part of that line. I don't really know yet. I do think there's some room to move on that pretty comfortably, and we're continuing to monitor that as we go through.

Yes, I would say I agree with that. And also, when you think about the ability to take, like Slack up market in the enterprise market, I mean, that is an amazing capability with credit to Gavin Patterson and Brian Nolan and our go-to-market team, we'll be able to do that. And I think there's a lot of things as we continue to go upmarket. While we're prospering, by the way, in the ESMB space, the SMB space, the mid-market space, but as we go up market again, I think that creates opportunity, Evan. To your point, I don't want to give a precise number. But I do want to come back to one thing Evan said that I think is a really important message that we want to leave with you today. It's so interesting in a SaaS model that we innovated from the beginning. It was a business model in addition to the SaaS technology breakthrough and a management model with our B2 modeling session, a philanthropic model that we've done as well. But when you think about the power of what Evan said, this is so important for all of our investors: A plus B minus C equals D. When you think about this whole notion of our recurring revenue that we have as a subscription business. And then you add new business on top of it, incremental annuities, and then you subtract away the attrition, you've pretty much predicted next year's revenue. And that allows a very unusually good degree of productivity in terms of the -- where this business is going, and it just shows the power of the model, Evan. And I just think that when investors understand those back to basics, it's just really powerful. And you can see like why we're having a good view when we talk about raising '21 and then Evan giving '22, even though we're 5 quarters from the finish of that and not a lot of companies do that in a pandemic. But I think we have a great model, and we have confidence in that model.

Absolutely. And it's been -- it's definitely a testament to the durability. It's something we've talked about through the years with investors quite a bit.

I agree.

Great. Our next question is from Derrick Wood of Cowen. Considering your investment priorities today, do you anticipate the mix of revenue from enterprise customers to continue to rise? And do you have longer-term mix targets?

I -- we haven't really guided that, Derrick. But I think that it's reasonable, given just how massive the enterprise market is to watch that mix. That mix has been shifting upward. Evan showed that in part of his presentation. But your point going forward, I think it's reasonable to assume that we probably will continue to get an upward mix just because of the sheer size of the market. What's interesting about that, though, is the fact that ESMB, we had a terrific quarter in ESMB and SMB. So part of it is, when you think about mix shift, you have to think about the numerator and the denominator. And when everything is performing, to a degree, it makes that shift slower because things are performing well. And so -- but I do think there's some upward opportunity on that mix, Evan.

Great. Our next question is actually from several respondents again. You showed us SMB attrition being higher than Core. Why do you still focus on that segment? I can go ahead and take that one. So it really comes back to the cube and how we think about the business, right? It's important for us to address all customer sizes. And that's really important to us to help customers grow as they go through phases of their development and their life cycle, and it's a critical part. It's really similar to what we shared with you guys last year when we have the different clouds, right? We have different clouds with different attrition rates and different subscription economics. And just because one product's attrition is higher than the other, that doesn't necessarily mean we shouldn't be in that business. It's about having that solution set and meeting our customers' needs because it's definitely the priority for us.

Yes. I agree. And the thing that's so interesting is an ESM -- a successful ESMB business will be an SMB business. A successful SMB business will be a successful mid-market business. And a successful mid-market business has the opportunity to be a successful enterprise business over time. And I think, Evan, your chart showed the rewards of the people who make it. Not all of them make it from ESMB to mid-market or enterprise, but the ones that do, the return is so powerful. I thought your slide really called that out. And yes. Very, very helpful. And that's all factored in, again, to our business model. And our business model is helping us get to $50 billion. Our business model is helping us have the confidence to get there as well as our values and the execution of those values in this great market.

Great. Our next question is from Arjun at William Blair. Do you get the sense that the increase in CTB is driven by hunting for larger deals? Or are you starting to rip out more modern vendors, which is increasing sales cycles?

Well, I have a view on that. The good news is we're going to have Gavin Patterson on this. I think, keep in mind, and what I liked about one of the charts that Evan showed, is we're both going international. We're going upmarket. We're going with more product. And so some of the complexity factors can go up in the short term as we continue to scale and optimize that. But the fact that those unit economics are so strong and so stable in the middle of the pandemic, I think, is a testament to the durability of our business model and how this business model is one of the key parts of the innovation that's going to get us to the $50 billion. That's what I would say. I mean, you've been in the middle of this. And also, we can ask -- we can talk to Gavin as well, but that would be my point of view.

Yes. I definitely think Gavin will have some unique perspectives. I think it's actually a little bit of both. Definitely, as we've shifted more towards enterprise, you sort of see that CTB increasing. But I think it's also about the competitive landscape, right, and how we're the #1 player now. And we definitely have to ensure that we're driving the business that we need to have.

Yes. And I think you made the point, too, through the business model when that goes up a little bit in the enterprise on the CTB, but the attrition is much more attractive, that was called out in other questions, all of a sudden, you have a mix where the unit economics are really good business in enterprise.

Great. Our next question is from Brad Zelnick at Credit Suisse. This is a great day. Thanks, Brad. You've mentioned values driving value several times. Can you remind us of those values and how their priority may evolve over time?

Sure. I'd love to do that. Four values have been enduring for us. Trust is number one in everything we do in every aspect, whether it's service delivery, whether it's how we interact with our partners, our customers, every aspect of what we do, trust is #1 at Salesforce. And hopefully, every employee ever meet would call that out. Secondly, customer success. We are driven by customer success. It is our true north for all the prioritization of what we do in our company. Everything is asked through the lens of the customer. Every priority of how we spend our money, how we invest in the success of our customers is absolutely enduring and has literally driven us to the next value, which is innovation. And we've been an innovator, a storied innovator from the beginning, including the creation of a SaaS market, which turned the entire software world to SaaS. But the key thing about the innovation is it's connected with customer success. It's innovation for a purpose, and that purpose is to make our customers successful. The way we came up with the Customer 360 vision, was listening and having an imaginative understanding of what the customer needed and applying world-class technology and solutions that actually work for them in a very user-friendly way. So they could have a solution, and they could work with a strategic partner. They could lift them up and help them be a modern corporation, help them be a future enterprise that is going to be prospering and growing in this digital work-from-anywhere world. And so that's the -- it's trust, customer success, innovation and equality. Equality is an ethos that surrounds us in every single thing that we do. And equality, in so many ways, is really the center point also of our culture, which is a destination culture, and it has really helped guide us in terms of how we work together as well. So those are the key values. And Evan, again, I'm welcome if you have any adds on that.

Yes, I think that's actually a great question for Marc Benioff later this afternoon on how those values will evolve over time. I think we've talked about with many investors, the importance of the B2mom process and how we think through that. And every year, we kind of revisit that. I think some of them will always be there. Trust, customer success. But I think that will be a great question for Marc.

Yes, it is. Absolutely.

Great. Our next question is from Alex Zukin at RBC. What kind of share dilution are you expecting from here to $50 billion?

Yes. Thank you for that, Alex. That's a topic, obviously, that's near and dear to me. We do not guide share dilution per se. But one of the things that we're mindful of is there's 2 things that can impact that. One is stock-based comp. And we have been working to take that down as a percent of revenue over time, notwithstanding M&A can create some lumpiness to that. And it has over the last several years. The second aspect of that is actually when we're -- in the past, if you look at like an M&A, the currency on that can have an effect as well. But at the end of the day, one of the things that we want to do is make sure that, that dilution is factored in. It's an important investment consideration, and we want to make sure that the shareholder is really happy over that $50 billion time frame with not only the top line in this generational opportunity but also how it translates into value per share, if you will. And so that is something that we are talking about. It is on our mind and because we know it's important. So -- but we don't guide that per se.

Great. And this is going to be our last question, from Phil Winslow at Wells Fargo. Mark, amazing run from HP to Autodesk to Salesforce. You've more than earned more time with your growing family. Can you help us unpack the core 17% CAGR? For example, Sales Cloud continues to defy gravity by continuing to grow in the double digits. Service Cloud is becoming the biggest core customer cloud and so on. How do you think high level about these cloud-specific growth rates?

Yes. Well, first of all, Phil, I can't thank you enough for that. It's been beyond a pleasure to work with everybody over long, long periods of time. And just to have the chance to interact has been the highlight of my career. So thank you all for that. And I would say that in terms of the specific question, one of the things that we like is we're literally in a position of strength today because of our core. And because of that, we're able to do something that's going to be even more differentiated for the customer with Slack. And the power of the engagement platform, a collaboration platform that is the best in the world, combined with our Customer 360 vision. And we think that, that is going to really help propel us. But to break it down more specifically, I think the Service Cloud, the market is so big, and there's so much innovation in that area that -- Evan, I'd have to say that one to me is one of the ones that leads away. When you think about the Digital 360, this power of e-commerce and the kind of traction we're seeing there, and in Marketing Cloud, which is one of the fastest-growing markets as well, we can see lots of traction there as we continue to be #1 or aspiring to be #1 in every single one of the markets that we're in and that we went through in some of my presentation. So I think personally, Evan, I think that's a huge opportunity. And it's Sales Cloud, one of the things that was very clear, even from the first question today is, look how big that market is. And look how much room there is to run. There are still people that are on spreadsheets in a world that it could not be more clear how important it is that the world is going digital. The opening presentation slide, the GDP is going digital. Companies are going digital, families are going digital. Individuals are going digital. And we think that in the sales cloud, people are just going to be wanting to continue on this path of getting away from kind of home brewed solutions, Evan, and I think right onto the best Sales Cloud capability in the world. So we're not -- like we don't guide by percents in every area. But I look at TAM, in 40 years of experience and technology, when I see great TAM and a great product innovation and a great position with the customer and a great installed base, I see opportunity. And Evan, I still see that with Sales Cloud for sure. And you can see that on long periods of time. One last thing, Evan, if I can get a sense to teed up that way. I should tell you, and this is a message to Amy, the very first question I ever had, going back 6.5 years ago or so with an investor I was meeting. Actually the first live one in Denver, they asked me, can Sales Cloud grow double digit? And it turns out over the years, it could. And we're not pointing or guiding by cloud, but you can sure see the TAM and we sure have an innovative bunch that are focused on customer success. So I'll leave it at that. And Amy, that's a note for you to think about when you're out there as well. And on that note, maybe, Evan, I think that might be a great time. I want to pull Amy in here. Amy, how are you doing?

I'm doing great, and thank you for sharing your first question with me. I'll make sure to make a note of the first question I get in February.

Exactly. Well, I just want to say a couple comments to everybody with Amy here. I've had the great pleasure to work side-by-side with Amy for 6.5 years. And Evan has too. Evan has -- had been business partnering with Amy and supporting me and done an amazing job, I might add as well. But Amy and I had worked through, Amy, I can't -- untold commercial deals, untold LRPs, untold M&A decisions as part of the broader executive leadership team when they’re -- under the guidance of Marc Benioff, of course. But we have worked side-by-side in so many operational aspects of the business. It has been a true pleasure, and it'll continue to be because I'm -- Amy, as you know, sticking around. I am so excited about that to support you and the ELT and the company's success going forward, and really looking forward to that. But I just want to say in front of everybody, I'm really honored to pass the baton to you. And I can't wait to work side-by-side with you to help in every way. So on that note, let me turn it over to Amy for a few comments.

Great. Thanks, Mark. I really could not be more excited. And it's great to be here today, though of all years, I truly wish we were at the St. Regis [ in west county ] this year, so that I could meet all of you in person. Hopefully, as the good news keeps coming around vaccines, we'll have that opportunity very soon. As Mark said, we have had many successes and adventures together over the years. And it's been truly great to work side-by-side on some of Salesforce's most memorable and most important milestones. And Mark, I'm really thrilled we're going to have the opportunity to work even more closely together over the next year as I'm transitioning to the role of CFO. Mark has also built out a world-class finance organization with a deep bench of talent. And I'm looking forward to working more directly with all of them, as well as with all of you. As many of you know, the CFO position continues to evolve. Today, it's more strategic and cross-functional than ever, and I'll be leveraging my years of strategic and operational experience here at Salesforce to ensure that we continue to drive strong results, and to allocate capital efficiently, in ways that both create value and drive new levels of growth and customer success. At the same time, I'm a strong believer in transparency and communicating with investors and analysts has never been more important. I had the opportunity to hear from many of you over the last week, which was educational. Frankly, not always easy, but I appreciate your insights deeply. I'm incredibly excited about the future of Salesforce, and I really look forward to sharing more with you about our plans. Now all of you in the investment community are important partners, and it's going to be a priority for me to be reaching over the upcoming weeks and months to schedule time to introduce myself and more importantly, to hear from you. So in the meantime, thank you, as always, for your support of Salesforce, and I'm really looking forward to meeting all of you very, very soon.

Amy, thanks for that. And I just have to do one add that I agree with Amy, world-class finance team and to multiple levels throughout the organization. And I couldn't be more grateful for that team and just want to say that on this call, for sure. So absolutely huge gratitude. So on that note, I think, Evan, we're getting -- it's getting that time to wrap up, I believe, yes?

Absolutely. We're going to take a break until noon, where we'll kick off with Bret, Gavin and Stewart. And as a reminder, if you're asking questions, again, please include your name and firm, and I will see you at 12.

Looking forward, thanks. [ Break ]

Thank you, and welcome back. I'm excited for our next session. We're going to have Bret Taylor, President and COO; Gavin Patterson, President and CRO; and Stewart Butterfield, CEO and Co-Founder of Slack. And with that, let me turn it over to Bret for some opening remarks.

Hi. Thank you all. I'm really excited to join Stewart and join Gavin for Q&A today. And I assume there's going to be a lot of questions about not just our product strategy but particularly Slack, which is obviously the largest acquisition in our history and something I'm personally deeply excited about. I wanted to start by talking through the strategic rationale and really what brought Stewart and I and the 2 companies together. And I will start by showing you a slide, which I think many of you have seen before, that shows our product strategy. Fundamentally, Salesforce builds the Salesforce Customer 360. This is a single source of truth. They connect sales, marketing, commerce, analytics, custom applications by industry to help all of our companies -- all of our customers go digital fast. And one thing you heard a lot from Mark and Amy and others is this pandemic has really accelerated the move to digital. Sales have gone from conference rooms to Zooms. Contact centers have moved from buildings to distributed teams, agents are working from their homes, really a complete digital lift and shift of what a contact center is. You look at Black Friday and Cyber Monday, we just call that Cyber Week now. E-commerce just is commerce at this point. Doctors' offices have moved to telemedicine. And I think one of the terms that Gavin uses quite a bit that we hear from the field is really this is a digital imperative. And I think that really captures the gravity we hear in our customer base. You saw that particularly in the strength of our Q2 and the strength of our Q3 and the guidance that we gave. We're really seeing that despite the economy being in a somewhat complex place to say the least, the tailwinds of this digital imperative are really driving incredible momentum in our core CRM business and something we're really proud of. The interesting thing for me is really the conversations with our customers lately. It has pivoted from talking about this pandemic as something temporary, something that our customers are getting through, to talking about what are the enduring consumer and customer habits that are going to remain on the other side of this. Just think of Cyber Week. Do you think next year we're going to have less e-commerce? Absolutely not. I think fundamentally, when we think about what does the future look like for our customer base, it looks a lot like right now. We're not going back. And throughout our company's history, digital collaboration and communication have been extremely important to us. Mark, prior to my time at Salesforce, hosted an entire Dreamforce about the social enterprise. I've worked in digital collaboration and communication for years of my career. And I would say that it has become more relevant than ever before in this new normal, this new normal which we've been calling this all-digital work-anywhere world. And as Mark and the executive team and I were talking about what is the value proposition we want for our customer base next year, in 2 years, in 5 years, in the face of this all-digital work-anywhere world, it looks a lot like Customer 360 plus Slack. And I'm going to walk through, I think, really how Slack amplifies the value proposition of this entire platform. If you look at this clock, which really represents our entire product portfolio and just start at the top, for sales, you have Slack Connect, which is the incredible capability that Slack has to not just connect with employees, but connect with partners and customers. That's an incredible tool for partner relationship management, for account management. Internally, it's an incredible tool for team selling, for approvals and all the business processes that connect sales teams. For customer service, it's case swarming. It's that digital contact center use case I talked about. It's connecting field service to the contact center for real-time troubleshooting, really enables the entire digitization of the customer service process. For marketing and commerce and the digital teams, I talked to so many customers in Cyber Week who are using Slack really as their central nervous system for Cyber Week. Really, it was the engine behind so many digital departments a couple of weeks ago and something we're really proud of. For the employee experience, it's HR, IT ticketing, knowledge management. So that's number one. I really say Slack amplifies the value proposition of every single cloud in the Customer 360. Secondly, I think one thing that Stewart and team have done really uniquely, particularly for a company that's only a decade old, is really growing the ecosystem. And I'm extremely excited to bring these platforms together. One of the announcements that we had at Dreamforce was around Einstein automation. I really think that Slack is the perfect interface for every workflow and every automation, both for the back office and front office of all of our customers. Stewart has an amazing way of talking about Slack as an integration platform. And we've obviously -- it's been something we've invested in over many years with the acquisition of MuleSoft. And bringing out Stewart's own words, if MuleSoft is integration for all the computers at your business, Slack is integration for all the humans. And we think this is an incredible opportunity to connect just the proliferation of software at all of our customers. And in particular, if you look at the AppExchange, which is one of our main competitive advantages, bringing together our AppExchange with the 2,400 apps and million-plus weekly active developers on Slack, just an incredible number, this is an incredible opportunity to really, I think, create one of the most meaningful ecosystems enterprise software. And then finally, I think there's just the -- really the vision for Slack where, I think, Stewart started the company, which is helping companies succeed in this all-digital work-anywhere world. As someone who's an entrepreneur, who is much less successful than Stewart at really defining a new way to work, Slack is really one of the few companies in the history of software that set out to change the way people work and actually succeeded. I've had so many conversations with Slack customers and has changed the inner workings of their company for the better. We truly believe this is the next generation of the way companies work together in a way that I think is being demanded by customers more than ever before in this all-digital world. So really excited to have Stewart at the company. I think we're going to open up for questions, but I want to start just before I pivot over to the Q&A. I just want to reinforce what I think Stewart and I are really excited about as we look at the synergies between our companies coming together and accelerating our business. I think one of the more -- the things that Gavin and I are very excited about is the Salesforce sales capacity really positioning the value proposition I just mentioned to our entire customer base. We think it's more relevant than ever before. And I think we have the ability to really accelerate Slack's adoption in enterprise through those conversations. We're also really excited about Slack as really the system of engagement for the entire Customer 360. You've heard Mark Hawkins talk many times about the importance of multi-cloud deals in our value proposition and as that relates to our business. We think Slack is an incredible accelerator of multi-cloud deals, namely having more customers not just buy one cloud from Salesforce, but buy the Customer 360 and that entire vision. And we really think that's an incredible opportunity for Slack and Salesforce. And then I think fundamentally, I think Slack makes our value propositions to our customers more relevant than ever before in this new normal, which I think will accelerate all of our business, whether they're single cloud or multi-cloud. And with that, Evan, we can pivot over to questions.

Excellent. Not surprisingly, quite a few Slack questions here. We'll start off with Michael Turits from KeyBanc. Any thoughts about how the business and pricing model for Slack might evolve as part of Salesforce and drive revenue synergies?

Maybe I'll start, and then, Stewart, you can add. Does that work for you?

Sure.

I think we're -- obviously, we're -- the deal is not closed. So I can't speak specifically to pricing and packaging shifts. But I can speak, as Stewart and I were talking about those product synergies that I mentioned earlier, I think they speak to ways that we can combine Slack technology with Salesforce technology to really help our customers. And that really means helping Slack be a part of a line of business and industry solution for our customers. It's been an important part of our evolution as a company to really serve line of business customers, heads of sales, heads of customer service, chief digital officers, chief marketing officers. The opportunity to position Slack as a part of that value proposition, I think, is really unique and a really soulful way for departments to be exposed to the value proposition of Slack. Also, our industry solutions have been an important part of our growth over the past year. And when I think about what it means to bring industry solutions to market, it's really about industry-specific workflows. We're helping our customers with their core business processes. And I think Slack as a workflow tool really shines there. So I'm really excited about bringing Slack to market through that lens rather than just a general purpose communications and platform.

I don't know if I have that much to add on top of that. I think that summarizes it well. When Bret and I were first talking, we would say 1 plus 1 equals 7, and I think there's a real possibility there, especially in multi-cloud deals to be a real exponential lift on the overall value that organizations are getting out of the combined products.

Great. Our next question is from Arjun at William Blair. And this is for Stewart or Bret. You guys decide who wants to start us off. How do you think about the opportunity to expand Slack's use as a B2B customer service channel via Connect? And what can Salesforce do to accelerate that?

Do you want to talk -- do you want to take this one, Stewart?

Yes, sure. So it's a great question. If you look back over the last 4 quarters of growth in connected end points, which is kind of how we measure the -- both the density and the participation in the network, it's 140%, 160%, 200%, 240%. So now we're at 520,000-plus connected end points. Almost all of those are some form of customer relationship. It might be professional services for creative agencies. But mostly, it's just vendor and customer. So I think we'll see some acceleration of the adoption there. But what we have seen already, looking back at our user conference, we had sales leaders from Stripe and Splunk up on stage talking about how much more effective it is to work with their customers in the context of Slack Connect, in the context of the shared channels, where there's one kind of focus for the conversation. It's exactly the same value that people get out of Slack inside of their organizations but now across the organizational boundaries. And the thing that excites me there beyond the increase in the usage is new possibilities for how people work together because there's never really been enterprise software that crosses organizational boundaries. I can have my system and you can go to my website and fill out a form, and I'll get that data, but not workflows that get passed back and forth across. So I think that's something that's really exciting, just kind of imagining the new possibilities for future generations of CRM that can really take advantage of those secure connections across organizational boundaries.

It's really amplified for me personally. Actually, this morning, Gavin and I were on a phone call with a customer -- or Zoom with a customer who is developing actually their channel strategy. And it was, by coincidence, a very happy Slack customer and happy Salesforce customer. And it's interesting how much Slack was a key component for them developing that channel strategy as a channel for partner relationship management and kind of managing all those channel relationships. So Gavin and I both were smiling just because we were coming on this call later in the day, and it was just really reinforced to us the power of Slack not just as an internal tool, but a channel for partners and customers.

Great. So let's do another Slack question here from Mark Murphy at JPMorgan. Bret and Gavin, was Slack something that your end user customers were clamoring for broadly? Or were boards requesting this for digital transformation initiatives.

Do you want me to start, Gavin? Or do you want to start?

Yes, you start.

Yes. So I think we've seen -- the thing that actually has surprised me over the past 5 years is just the breadth of adoption of Slack across the enterprise, like many new tools that started in technology teams, digital teams. And one of the things that Stewart has talked a lot about in Slack earnings calls is just the impressive number of customers that have really gone wall-to-wall. And what really reinforces to me is just how relevant this new way of working is across every single line of business that Salesforce serves. We talked a lot about Slack Connect and its relevance, particularly among our B2B customers for partner and customer communications. That's something I've seen widely in our user base, particularly for B2B companies. And the other thing I mentioned multiple times is it is really ubiquitous among digital teams. And when I look at our Marketing Cloud and Commerce Cloud business, if you look at what it takes, and I encourage you to talk to customers running a Cyber Week, it's real time, the merchandising, the promotions. It's a very tightly connected system to sort of drive this engine for growth, which is candidly the only engine left for many of our customers right now. And Slack is this real-time event-based collaboration system that truly does become that central hub for all these digital teams. And so I've seen it in our customer base multiple times. And I would say the thing that 2020 has shifted is the relevance of this tool for our customer base now feels ubiquitous. I think that in a world where all parts of our customer base are moving to digital forms of engagement, we really felt like this value proposition was something that every single one of our customers could benefit from.

Yes. I mean if I could add to that, Bret, one of the things that is so striking, I think, about Slack is the way it's been driven in terms of adoption by viral marketing. It is -- the pull from the market for the Slack suite is just so powerful. The word-of-mouth, extraordinary. The customer satisfaction around the product, it's almost religious. And I think the rest of Salesforce when the deal goes through, assuming it does, will really benefit from that because I think that adds to our distribution capability. I think we can help on the enterprise side of the equation where we've got real strength. But I think if you combine these things together, you're going to have a really strong proposition from a distribution point of view right away across the full gamut of opportunities, a mixture of pull and push.

Great. Thanks. Our next question is actually multiple questions on this topic. How do you think about Slack in context of both Chatter and Quip?

Yes. I'll start. It's something actually Stewart and I have talked quite a bit about. So we really want to, when this acquisition goes through, really lean into Slack as the platform and the engagement capability for all of Salesforce. And that really means trying to incorporate all the technologies from Quip into that integrated platform. And so it's something that we're really excited about and something that Stewart -- an anecdote that Stewart has relayed many times over this past week is we've been actually talking as partners over the years on how Quip and Slack can work better together. And it's something that I know the product teams are extremely excited about acting on with this acquisition to bring these together. And one thing I would say is that Slack has really accomplished what tools like even Chatter weren't able to accomplish, to really change the way people work. And I think Slack Connect really proven that this new way of working really expands beyond company boundaries in a way that's very unique relative to all those technologies. And so not in any way -- obviously as a co-founder of Quip, I don't mean to criticize it, but I think Slack is a much more important and much more universal part of our strategy going forward, notwithstanding our excitement about integrating the technologies.

Great. Let's take a non-Slack question for a little bit of diversity here. This one's for Gavin. With continued significant product expansion, what do you need to do on the go-to-market to adequately sell bigger and broader in companies?

Well, a number of things. I mean, first and foremost, continue to build capacity. We've been growing capacity through this fiscal in spite of the pandemic. We'll finish the fiscal with a real strong momentum in our selling capacity across the business. I think beyond that, we need to look to continue to build our muscle around the verticals. As Bret said, this is a strategy we've been following for a couple of years. It's really proving to be successful with customers. I can see us expanding that going forward, continuing to build vertical solutions, industrial solutions for customers. Then I think internationally, there's still scope to drive growth. It doesn't replace growth in EMEA. There's plenty of potential to continue to grow in the U.S., in particular. But international and all the markets outside of the U.S. really do have some fantastic opportunities, particularly amongst multinationals as we look to expand from here. So the message for you, I would say, is the core of the business had a good strong Q2. You saw that in the numbers. We had a strong Q3 as well. And I think that might have not come through as clearly as we'd like in the results last week. But let me reassure you, we're feeling very confident about the business going forward. So we can see a strong pipeline for Q4. We can see the momentum continuing. And we're very bullish about what we can achieve next year. So for me, Slack will enhance our proposition for customers. I think it will enhance both the Salesforce proposition, and I think we can bring additional distribution to Slack to create that 1 plus 1 equals 7 equation that Bret and Stewart were talking about.

Great. You mentioned verticals in your last answer. So we got a question on that from Scott Berg at Needham. Now that you have Vlocity under your belt for an extended period, has it changed your strategy on how you approach the industry push either on the go-to-market or product side?

Well, I'll start with some of the product, and Gavin and I have spent a lot of time planning go-to-market. I think it's really reinforced the importance of industry verticals to our company. We now have 12 industry verticals with custom clouds that really are meeting the needs of these really fundamental business processes for all of our customers. This is something that Gavin knew even as a customer of Salesforce before joining the company. And the value proposition we come into particularly the C-suite of customers in each of these verticals, and we're coming not just with general-purpose technology around Customer 360 but really business processes that work out of the box, it really checks a number of very important boxes for our customers. Number one, it means that we really understand what's driving their business, which up levels the conversation with our account teams to our customers and really reinforces that we're an engine for growth for our customers, which is our fundamental value proposition. Number 2 is it improves time to value. It's interesting. I think this year, more than any other year, I've heard CIOs and CEOs really say, "I need results yesterday. Done is better than perfect," because the urgency of the economic shift is so paramount in the minds of every single one of our customers. And number three, I think it really differentiates our platform. I think that we have a much deeper relationship with our customers when we have these industry solutions. So -- and I'll turn it to you, Gavin, to talk about our go-to-market strategy. But I would say Vlocity has really enabled us to double down on our vertical strategy and reinforce how important and effective it is as we grow our business.

I couldn't agree more. I think Vlocity has settled in extremely well into the business, and we're already seeing the benefits of that. Virtualization for me is all about demonstrating relevance to customers, recognizing that customers want within a particular vertical, have a standard set of core needs over and above what a core technology, such as Sales Cloud, for example, can provide. And they're -- increasingly, I'm hearing from customers, they want those capabilities, those features if you like, built into the cloud. They don't want to pay extra for it. They don't want to have it reinvented every time we go around the market. They want it standard, and it's not going to be a point of differentiation between them and their competitors. It's just part and parcel of doing business in that market. The differentiation comes on top, both in terms of the product capabilities that they may want to add, but also how they use it and how they really drive the full value of the Customer 360. So it's really interesting when you're in customer meetings and you see them -- you see the customer come to life when you were able to demonstrate, you understand the core processes and it's built into the cloud already. It makes a big difference, particularly at the C-suite because as Bret says, CEOs in particular are looking for faster results. They don't want 3-year digital transformations. A 3-year digital transformation is something in the past. They want results within a year and quite often, within months. And the way to get it is out-of-the-box solutions, which is what we provide to industries.

Great. Another question for you, Gavin, from Stefan at BNP Paribas. Do you need to tweak the Salesforce brand for international enterprise customers? How do you see Slack helping internationally?

No is the answer. The Salesforce brand is a really world-class brand. And I can say that from somebody who started their career in marketing at Procter & Gamble. There are very, very few brands around the world that have the power that Salesforce has. What we do need to do, I think, a little bit more of and we're putting the investment in is to drive awareness outside of the U.S. We've not been in market as long in many of the international markets. But I can see the awareness curve growing. And I can see a new generation of leaders coming through who understand much more about enterprise software, understand about -- more about CRM and digitalization, and they know that Salesforce is the best partner they could choose to really go through that journey with. So there's a sort of, I would guess, a timing market process we're going through in some of the international markets to get there. And we're putting the investment behind driving awareness of the brand. Slack only adds to that, in my experience so far. As I mentioned, Slack -- and from what I can see and talking with Stewart and others, Slack's come out of the consumer market in some ways. It's got all the power of a great consumer brand. It's been driven on viral marketing and enterprises sold off the free base. I mean that is a great complement to, I think, the muscle that we have in face-to-face enterprise sales and B2B sales, I think. And that is going to really complement, I think, our go-to-market strategy. So I think this will be something that we look to really drive going forward, benefiting from each other's go-to-market motions. But I'm very confident that the combination of 2 is a real winning combination for customers and that will be good for Salesforce as well.

Thank you, Gavin. Our next question, I think, Bret, you can handle this one from Terry Tillman at Truist Securities. From a new product perspective, please give us an update on Audiences 360 CDP early sales traction. And is this a bigger market than other marketing cloud products?

Yes. I'm really excited about Customer 360 Audiences. We talked a lot about it at the Dreamforce keynote last week and actually in conjunction with another big announcement, which is Hyperforce, which has been our years-long effort to run Salesforce on public clouds around the world. I bring it up because I really think of Customer 360 Audiences, which is our B2C scale customer data platform, as really CRM for B2C companies. I think for a long time, I think CMOs have really had to roll their own processes around their consumer data. They're obviously not tracking leads and opportunities. They're generating segments. They're personalizing mobile apps. They're personalizing landing pages. We really think that our expertise in CRM, combined with this very significant architectural push that we put behind Hyperforce and our single source of truth, is extremely differentiated in the market. I am personally working on so many engagements this Q4 around this, along with Gavin. And I would just say this year, in particular, the importance of first-party consumer data to all of our B2C companies has really grown. People really are -- I think, are respecting how important it is that they market to their existing customer base that they grow loyalty among their existing customer base and really have a tight integration between their -- particularly companies that have digital commerce platforms and their engagement platforms. And that's really where I think the companies -- the CPG and retail companies that are really showing growth this year have really figured this out. So I feel very optimistic about the traction I've seen in the marketplace so far. And more so, I actually think that this is the foundation of our B2C digital platform for really that single source of truth for B2C companies. And I think it is more important than many parts of the Marketing Cloud. As a consequence though, I think importantly, amplified by the rest of the Marketing Cloud. What do you do when you have data lake of your consumer data? You want to drive engagement through push notifications, through SMS. You want to drive personalization through our Interaction Studio product. So I'd say it is foundational to our strategy around Marketing Cloud, but obviously amplified by the fact we have market-leading technologies in all other aspects of B2C marketing.

Great. This next question is for you, Stewart, from Alex Zukin at RBC. It would seem that you're able to fulfill -- you were able to fulfill your UX for enterprise application vision. And now you have Gavin. So what's next? What are you now able to do that you couldn't?

Well, I think we touched on 2 of them kind of at different points here. One is Slack Connect. And I think it's really taking advantage of the network that's being built there. Obviously, that's been a big driver of growth for us. Last quarter, we added 12,000 net new pay customers. And of those above the baseline, the biggest contributor is people who are upgrading specifically to get access to Slack Connect. So that's great, more customers. But what else can we do with it? And what else can we empower customers to do with it? I'd love to see a world where service tickets go over those shared channels, where invoices are submitted, where contracts are signed. And being part of the biggest and greatest CRM company in the world makes that possible in a way that would have taken us a long time to convince Salesforce's partners to really invest there. And the other one is the platform. Bret mentioned that earlier. I think one thing that took us a while to discover is Slack as the engagement layer is the kind of environment where the people will actually interact with all of the workflows that are being built all over the place. So almost everyone has one or more workflow builders, low code, no code tools and, I would say, universally or generally, at least, they're really valuable. Customers get a lot of value out of them. They need engagement though. People need to be able to interact with them. And where the conversations are happening, where the decisions are happening, where the debate is happening is the perfect place for that. So Bret mentioned the 1 million-plus developers. One other thing that's interesting to me anyway, 700,000 custom integrations. So these are integrations that are built by customers that are active on a weekly basis. And if you look at that, of our 142,000 customers around the world, 94% have built at least 1 custom integration. If you look at the 1,080 $100,000-plus customers, it's 99.8% of them have built at least one customer integration. The average number of that was about 100. And if you look at $1 million-plus customers, it's 100% of them have built custom integrations, and the average is about 500. So the possibility to really stitch together those processes which cross the organizational boundaries -- I've used an example recently of the kind of Scrum on the last day of the quarter for enterprise software companies. Legal, finance, accounting, sales operations, the AEs, the sales leadership, security teams just all trying to wrap up every loose end, that's where I think we can make a huge contribution, and that's where I think we can be a multiplier on the value of the investment that people are already making in the software.

Great. Thanks, Stewart. And Bret, we're actually going to come back to you here. We actually have a ton of questions about more sort of understanding product-level leverage and integration between Salesforce products and Slack.

So actually, it broke up for me. You're talking about integration between Slack and Salesforce products?

Exactly. So a little bit more granularity there, yes.

Yes. So I think we talked a little bit about in the earnings call about Slack really being the system of engagement for Customer 360. One of the things that, at Dreamforce last year, we talked about was kind of the evolution of software, a system of record, which is where Salesforce started a system of intelligence, which is what we really invested in with Einstein. And I think Slack as a system of engagement for our platform is an incredibly powerful concept. And I thought Stewart's last example, I think, really speaks to this. If you think about customers, on average, having 500 custom integrations, this really is the place where every stakeholder of the company is going to do their jobs. And you think about all the workflows that the people in our customer base do every day, and I'll just pick Sales Cloud because it's our namesake, one of our most important clouds. Just think about the act of being an account executive or sales manager, generating an order form and sending out the contract via a platform like DocuSign. When that executed contract comes back, interacting with your ERP system, acting with sort of sales management to get approval on a discount, all of these really represent what our customers mean when they say Customer 360. And it's tons and tons of different software, much of it written by us, some are written by our AppExchange partners or other members of our ecosystem. For a lot of our customers, it's custom software that they built themselves. And I think Slack has a potential to be the system of engagement for every stakeholder in our business. And as Stewart said, and we've driven this point home a lot, but I think it is worth repeating. Slack Connect really just turns that up to 11. I mean every single one of those workflows I described, if you're engaging with a partner, if you're engaging with an account, if you're engaging with some member of your supply chain, all of that engagement can happen on Slack. But also, all of the systems that you use to actually collaborate as partners engage -- work there as well. And I think that's an incredibly powerful concept for our platform. And the interesting thing is, thanks to the way Stewart and Cal and the entire Slack team have architected Slack, I think we can really accelerate this value proposition for our customers. The reason why so many Slack customers have 500-plus integrations is because Slack is designed to work that way. So we don't need to rearchitect our platform to actually fulfill a lot of that vision. We have -- I think it's a lot of what -- how Slack is architected, designed to facilitate this vision for the future. So I'm really excited about it and as I mentioned, across every single cloud in the Customer 360.

Great. And another Slack question here for you, Gavin. Can you explain more about the go-to-market synergies from Slack? How are you organized for distribution?

Well, I think at a sort of high level, and that's exactly where we are at this point because, of course, the deal hasn't closed yet and won't for -- until first half of next year. The way we're looking at it is to take advantage of the 2 strengths that I talked about earlier. In terms of what Slack offers, a strong viral go-to-market strategy, which is being used as the basis to upsell into enterprise. But I think it's fair to say the real strength of the business is the -- is that viral aspect of the go-to-market motion. I think where Salesforce can help is leveraging its own strength, which is this army of enterprise sellers that's going to be the thick end of 10,000 very, very soon. That is a real source of competitive advantage. And when we can -- when we choose to direct that to a particular target, that is an extraordinary force of nature. So I think these 2 go-to-market motions are very complementary. So I think we will be able to help on the enterprise side, bringing Slack to a wider group of enterprise customers. And I think that will benefit not just Slack, but I think it will create an enhancement to the Customer 360 that we were talking about earlier. And at the same time, I think I'd like to learn more and take advantage more of the viral capabilities that Slack bring to the business. As you know, I haven't been in the business that long. From what I understand, where Salesforce started, there was a very viral marketing and offering the service for free to small businesses. It was really where the business started. And I'd like to go back around that to see whether or not that should play more of a role right at the beginning of the small part of the customer base that the SME and probably SOHO part of the customer base. So I think there's a real synergy between these 2 motions, and we'll look to take advantage of both.

And one thing I'd add to that, Evan, I do think that if you think about -- I've talked to a ton of Slack customers both before and after this transaction, the happiest Slack customers start with a team using it to solve a problem. And we've named a bunch. What I love about the go-to-market synergies that Gavin described is that's how we're selling Slack. We're digitally transforming your sales process. We're developing your channel strategy. We're helping you digitize your contact center. We're helping you transform field service. I think that's a very natural way for new customers to be exposed to the value proposition of Slack and really plays to Slack strengths, which is starting with a happy team that becomes the evangelist to Slack and the rest of the enterprise. So that's something that particularly excites me is I think this will be a very natural motion as we integrate the value propositions of the 2 platforms.

Great. This next question is for Gavin. How is deal flow and pipeline generation from the thousands of virtual Dreamforce sessions? If successful, would you sprinkle more virtual events in the future?

Very interesting question. I think the thing we've learned more than anything else on the sales and distribution side this year is we've built this business. So this business has been built [Audio Gap] in Dreamforce, a face-to-face conference, I think the biggest tech conference in the world. None of that's been able to take place in the same way this year. I mean it's an obvious thing to say. And yet, we've been able to pivot the marketing, the selling, the engagement with customers. And I would say a couple of things have come out of that. We're probably getting over 2x the amount of face time with key decision-makers over video. So it's -- I think we've all experienced it. It's easier to pull together a video meeting than it is a face-to-face meeting. And I think that's been one of the learnings from this year. And secondly, we've all learned that, actually, you can close a lot of business on video. It's not to say that face-to-face doesn't enhance it at times. But we have signed some very big deals around the world using video. So the biggest deal we've signed in Q2, for example, was in Africa -- sorry, in Q1 was in Africa. And that was a deal that had been in the making for a while, but we had to close it completely on video on very short notice. And it's worked, and it's turned out to be very successful. So I think we can -- we've shown we can close a lot of business on video. And the pipeline itself that -- so generating the opportunities in the first place is really, really strong. So we haven't seen that we've lost any sense of being able to build demand or engage in new opportunities with customers. I think it helps that the core of what we offer is more important than ever. To borrow a phrase that Bret has used, if you don't have a digital strategy, you don't have a strategy. And I think that's very, very true. So the pull from customers is very strong, and that is continuing as we begin to look into '21 and hopefully seeing a light at the end of the tunnel when it comes to pandemic. We're seeing no letup in the interest of what we offer to customers. So to answer your question, I don't think we'll revert back to the way we did business before. I think we've learned that actually a blend of video and face-to-face are likely to be the way forward. And I'm certainly feeling as though the core of what we offer, the proposition itself, the digital imperative, as we've talked about, there's no sign that, that is, in any way, letting off. In many ways, I think it's becoming even more important than it was 12 months ago.

And to some degree, Evan, Gavin's narrative about our own experience is a microcosm of the market. I think a lot of -- the reason we're seeing such strength in our core businesses right now is because a lot of companies are saying, "What do I want, sales, customer service, marketing, commerce to look like on the other side of it," with an acute recognition that they're not just going to snap back to the way things are. That shows up as new business. It also shows up as really interesting reimplementation of our core clouds where people are really trying to reimagine their core business processes. And I think that's reflective in all the momentum you saw in Q2 and Q3 of this year.

Great. Thanks. This next one is for you, Bret, Kirk Materne at Evercore. Bret, at June 1, 2019, you talked about Customer 360 and data as the 2 big tech pillars. Slack helps round out Customer 360. What are your thoughts on the data side and where CRM needs to go with data?

Yes. It's a great question. I'd say data has always been central to our strategy, always trying to create a single source of truth for our customers. I would say what has really shifted that I think will be accelerated with Slack joining Salesforce is really looking across all your enterprise data. I think that really started with MuleSoft. It continued with Tableau, where customers that I talk to are really coming to us with all their data problems. They -- and I think particularly in a company that's gone all-digital, data is the byproduct of every digital interaction. And the companies that are good, had seen an understanding of that data, good at integrating all their systems, are the ones that are moving fast right now. I think that, as I mentioned before, one of the, I think, undertalked about parts of Slack is Slack as an integration capability, really integrating all your enterprise applications and workflows. And I think that really amplifies that theme of what we're seeing across data, across our customer base. The problems that we're solving are fragmented data, silos of data, legacy systems. That's really where MuleSoft shines around analytics. And particularly, with analytics being focused on really empowering every single member of every company, to see and understand data is really around kind of a digital business and decision-making. And I think Slack will really help amplify that value proposition, where we can come in and really with a very coherent way, say, "We can connect all of your enterprise systems, no matter whether they're legacy systems or not. We can connect all of your enterprise data. We can help you see and understand it, and we can help you collaborate around it as well." And when I think about sort of what is the workflow of a digital business, it looks a lot like where our platform has evolved into. And I think the explosion in data is one of the most important secular trends in enterprise software right now. I'm really happy how we've positioned our platform to help our customers navigate it.

Great. Thanks. This next question is very interesting. I'll be curious how you guys respond to this. Fred Havemeyer from Macquarie. App platforms and integrations can be challenging for line of business users. How do you make automation, workflows and integrations accessible to nontechnical employees?

Stewart, do you want to take this one? We've had a lot of conversations about this.

Yes. So I don't want to get too philosophical, but the philosophical angle is you think back to the kind of mid to late '90s, early 2000s, people making macros for Excel and customizing apps with VBScript and people designing their own databases with MS Access and going back before that, FileMaker Pro and all those tools, I think the essence of those is accessible to almost anyone. So I don't mean -- VBScript, I don't mean people are going to be writing code. But I mean the idea of taking something which is messy and conversational, for example, one of our account executives requesting support from an executive at Slack to like send an e-mail to a customer or requesting a demo from our solutions engineering team or requesting support from customer success manager, all of those little tiny workflows were built by the people in the trenches. They were built by, in one case, our Head of Sales Executive Assistant, in one case, individual account execs. These are not technical experts. These are people who use very lightweight, simple tools that are built into the product, they're entirely WYSIWYG, GUI-driven. And the value of that isn't just that now there's a little bit of structure. It's that now people know how to get something done, where before they might just wander around and ask their peers and ask their manager, "How do I get this?" But the last thing I'd point out is once that has some structure, once it's digitized to any extent, it's a hook that can tie back to the other systems. So those -- the 500 custom integrations developed by customers inside of those larger customers, it's an enormous number, and it's really the -- typically, the synthesis of many tools. It's the crossover points between different job functions and different activities. I think the simplicity with which we can create user interfaces, entirely form-driven, press a button, are in many cases a simplification of things that people are already doing. So many managers will get an e-mail from some software that says you have an expense report to approve. They click the link in the e-mail that opens a web browser. The app starts to load. They get kicked to their SSO to authenticate. They go back to the app, find the app, loads it and then they can press the button that says Approve. In Slack, the button is presented right there in the message. And you can also send these messages into channels where there can be multiple approvers. If you say no, we need to prompt you for a reason, that can happen right in the UI as well. So I think it's really exciting to imagine how much more room there is to give the end users, especially the nontechnical end users, a simple kind of LEGO kit of tools from which they can build these workflows that ultimately connect with their back-end systems and drive an enormous increase in the value that people are investing in software because one thing we know for sure, every year, every company is going to invest more in software on a per employee basis. Every employee is going to spend more minutes of their day using software. And as software continues to eat the world and get into finer and finer niches, there's new opportunities, not just for the people in their individual job functions or roles, but for the intersection of those with the cross organization. And that's I think one of the things that's driving Slack wall-for-wall.

And Evan, Gavin made this joke. We announced so much over the past couple of weeks, a lot of the news got lost in the mix of Dreamforce announcements was our investments in automation under the brand Einstein Automate. One of the most compelling parts of that experience is MuleSoft Composer, which is bringing the MuleSoft technology into the hands of nontechnical users with a point-and-click interface. I am personally just extremely excited about the combination of MuleSoft technology, Einstein and Slack as that system of engagement around those workflows. I think this combination really has the potential to really democratize automation for a lot of line of business users.

Great. So since it's Cyber Week, we have a question for you, Bret. Headless CRM was a big theme you highlighted last year. Can you update us on the movement and where we stand in the traction of the industry?

Yes. So for those of you unfamiliar with the term, a lot of companies want their core customer systems, order management, their customer data system, the inventory system for their storefront to be available not just to something that generates a website, but as a set of APIs that can be used to integrate customer experiences into platforms like Instagram and Facebook and Pinterest and all the places where consumers are actually having these engagements with brands, particularly as those platforms deeply embed abilities not only to market to customers but actually fully transact and do purchasing. It's something we're really seeing continue to grow in our customer base, especially for customers targeting those consumer platforms. And I think that our strategy has and always will be to really provide a really complete platform that offers capabilities at every layer. If you want a set of APIs and you want to develop a custom application, we have the capabilities. If you want low-code capabilities because maybe you're making an employee or partner-facing experience and you don't want the total cost of ownership of a full-blown custom code, we supply that. And if you want applications that just work out of the box with lightweight configuration, we also support that. And we really do think that's what differentiates our platform, is supporting everything from pro code to low code to no code. We think that there's a different tool necessary for every job. And you see this in our retail customer base. Their flagship consumer app might be custom developed by an agency, but the app they're using for their partners is usually built on a low-code platform like Lightning. So we're going to continue to really address all 3. That's really fundamental to our platform strategy and I think sets us apart because we're not headless only. We support that interface. We support a lot of other lower cost, fast time to development options as well. And actually, I would say along those lines, the reason we've seen such momentum in our commerce business, which we talked a lot about on the earnings call, is the investment we've made in low-code capabilities for designing storefront, for merchandising. In an age where the world is moving fast, as I said, done is often better than perfect. And so we want to make sure our platform supports the full breadth of development.

Great. Thanks. This is going to go ahead and be our last question. And it's going to be about Service Cloud. What are the key drivers of Service Cloud? And how does Slack help drive this growth?

Yes. So Service Cloud is now our largest cloud and I think really just an exciting part of the Customer 360. For a lot of the customers that I work with, I describe it as almost the anchor tenant of their customer experience. It is the place where they're really focusing on developing that single source of truth, and they're building the rest of their customer experience around it. I think what's really driving our growth there, which I continue to -- I think, as Gavin mentioned, the growth in our core has been incredible this year, and I think it's really been driven by incredible momentum in Service Cloud in particular, it's the breadth of our offering. We offer everything from ticketing to contact centers, all the way through to digital service like chat bots through field service. So when you're thinking about the full spectrum of what it means to transform your customer experience, we talked a lot about examples like the AT&T engagement we have. It's everything from people sitting behind the desk to sitting in a contact center to someone in a store or in your home with a tablet in their hand. And we're really the only platform that can power that end-to-end customer service experience. What I'm really excited about with Slack is just how much it enables all those workflows to be more effective. One of the most common things is you have someone in the field, perhaps fixing an elevator or fixing your cable connection, whatever it may be, that real-time connection back to a contact center to actually diagnose and repair those issues is so fundamental. And I think Slack is an incredible opportunity to connect the field to the contact center and I think is something that will be very, very relevant for that customer base. We also talked a lot about case swarming. I'm really excited about this. When you look at the customers' perspective, which is reducing the cost of their contact center or you look at the growth potential of service, it's about customer satisfaction, the main KPI is time to resolution. And we think that really deeply connecting the real-time capabilities of Slack with the customer-facing agent, whether that's a bot or a person, will dramatically improve time to resolution, which I think will really help drive success in customer service. And I also think broadly as you think about this trend of digitizing and distributing contact centers, I think Slack is an incredibly relevant capability in that context for just collaboration between all the stakeholders needing to resolve customer service cases. So I'm really excited. It's one of the areas I think Slack is most relevant in our portfolio and obviously a huge engine of growth for our company.

I can't help but jump in there just because, Bret, you probably remember this, but early on when we were talking about some examples of real-world applications, we discovered a mutual customer where it's a very seasonal business. They grow the company by about 30% or 40% each year for their peak season. And I had it from the Slack side, which is the supervisors of people responding to tickets causing the escalation or triggering review by a supervisor of the quality of a response from an agent all inside of Slack. So those -- the questions from the customers are showing up there. What I didn't realize is the other side of that was Service Cloud. So this customer had built a bunch of integrations to allow the interactions to happen and the workflows to show up inside of Slack and underlying that was Service Cloud. So you have some people in both tools, some people just in one, and the whole organization working much more effectively because of it.

And notably, Evan, actually when Salesforce became an enterprise customer of Slack, it was because our support team adopted internally at Salesforce. So a relevant way to end that question.

All right. Thank you all very much. I appreciate the time, Bret, Gavin and Stewart. And Stewart, a warm welcome to our Ohana.

Thank you.

We'll be back in a little bit. Thank you. We'll be back in a little bit with Marc Benioff, Chair and CEO. Thank you. [Break]

To. All right. Well, thank you so much, everybody, for being here today. We appreciate your attendance at our Investor Day. And I hope you all had a chance to visit with us last week as well when we did our Dreamforce Keynote from Salesforce Park. It's been an amazing year. I'm in my home, probably a lot like you are in your home. And it's incredible. It's a global pandemic. It's an economic crisis. It's an environmental crisis here in the United States. It remains a social racial justice crisis, and it's an education crisis with all of our kids at home and schools at home. When I reflect back a year ago, when we were at the Dreamforce 2019 Keynote, we talked about the 4 levels of computing. And it gave me context to talk about our strategy and where we're going and what's happening with our company today. And I thought I might revisit that idea briefly. We talked about the 4 levels of computing and the evolution of our industry. We had this amazing thing, systems of record. We started way back in IBM, but it's really kind of the concept that Salesforce is built on, your sales record, your service record, your marketing record, your platform that builds your business so that you know exactly what's happening. I mean, it's so powerful. And that concept of systems of record was long prophesized to be complemented by a systems of engagement. We talked about that for many years in many, many keynotes. And then we began talking about, and we first discussed systems of intelligence and that, that would be a next wave, especially with artificial intelligence and deep learning, machine learning how would it all fit together? And finally, what we revealed last year at Dreamforce was our vision of a single source of truth, which you just heard about with AT&T. That's a story that gives me so much inspiration, motivation, excitement. I'll tell you about that in a moment. But those 4 levels of computing: systems of record, systems of engagement, systems of intelligence, single source of truth. It defines Salesforce today, also defines kind of the key strategic moves that we've made in the last couple of years to put it all together. Because when we go to talk to a customer like you just heard AT&T, that's been an exciting story for us to see them deploy basically their whole company on a Salesforce platform to make them more competitive, more agile, more productive, more successful. And as Jeff McElfresh said, a highly competitive industry. Well, it's because we gave them Customer 360. It's because they're able to collaborate that with Slack now. It's because they've used Tableau for intelligence and business intelligence, and Einstein and also MuleSoft to build it all together into a single source of truth. And no other company has this vision, no other company, I think, is really even trying to kind of pull it together. And when you see it come to life with AT&T, that is what is so exciting to me. I mean when I think about -- and I was listening so intently into the questions, and I love the comments in the previous session between Gavin and Bret and Stewart, well, Slack and Customer 360. I mean, we didn't say it exactly, but for those of us who have been in the industry a long time, it's client server 2.0 in many ways. It's the client, Slack, it's the server, Customer 360, the systems of engagement and the system of record. And that is a powerful moment for a transformation. It becomes a platform of platforms, if you will, very much exactly what Stewart said, that idea that workflow becomes the heart of the enterprise. And with this phenomenal UI, where all of your employees are able to interoperate in this world, not only governed by Salesforce but through this tremendous ecosystem and industry of applications, it's really incredibly magical. So those are really the 2 things that become important, Slack and Customer 360, which encompasses Tableau and MuleSoft as well because you need your systems of intelligence and single source of truth. There is something else that hasn't been said, but I want to just say it because I was so proud of the team in the last session. This is amazing management team, and I couldn't be more proud of the management team this year. And it's a management team filled with CEOs. And you saw that in the last session, all those CEOs there, Gavin, who was the CEO of British Telephone (sic) [ British Telecom ]. And of course, we had Bret, who was the CEO of Quip, but also was the CTO at Facebook before that. And Stewart, of course, and me and others. But it's an amazing management team. And I'm also so proud and at the same time grateful, grateful to Mark and so proud of Amy for coming in and complementing that amazing management team and taking it now to another level. I think it's the best management team in the software industry. I have a hard time thinking about a team that is better than we have in technology, in finance, in sales, in service, in marketing. And I think it really came through, especially last week in the Dreamforce Keynote. And it's also a team that's able to operate at speed. Speed. That's also a major theme. We can see that the Autobahn effect is happening between the Salesforce and SAP. We're getting ready to pass SAP, not just in market cap, but in revenue. You can certainly see it in a lot of aspects of our business. And we've got clearly Oracle as the next stage right there as we deliver our guidance to $50 billion in revenue. We're very excited as this kind of short-term window of where we're going in the industry. And this is a tremendous opportunity. I don't think the company has ever been stronger. I was thinking about all the things that I heard between Mark and Evan. And you look at Q2, you look at Q3, you look at the guidance that we've given for Q4 and we're going our way. I also gave guidance, I think, for Q1 as well. I mean, you put that together, and you see just an incredibly strong company operating with this very deep breadth of horizontal product, but also complemented in these 12 verticals. And then this year has really shown us all these new opportunities. We're not -- here I am not traveling. I'm at home, you are. And I -- well, we're not traveling. We're not -- we don't need real estate like we needed before. I mean, these are new opportunities that we continue to recognize and that we see as tremendous for our future. So when we put all of this together, we could never been more excited about Salesforce, where we are now, where we're going, our ability to compete, to position, but also #1 and most important is the trust we have with all of you and our customers, our employees, all of our Ohana, our customer success, the innovation that you've witnessed, especially over last week, and also the quality of every human being and I think that's come through this year. We didn't talk about it very much, but we've done tremendous work during this pandemic. It's been a core part of what we've done, responding in many situations, whether it was acquiring 60 million pieces of PPE and distributing it to over 300 hospitals at their greatest time of need, whether it was our work with critical governments around the world. We featured Rhode Island last week. I also think a lot about Victoria, and how we've helped eradicate the virus there and many other governments in states and cities and nations we've worked with around the world. And others who have asked us to be -- well, as we say, a platform for change. We really believe, business is the greatest platform for change. And maybe in all of this, whether it's our team, or our strategy, or our products, our core values. Ultimately, it's -- that Salesforce is a tremendous company that does well and does good at the same time. So just wanted to thank everyone for what they've done this year. It's been probably one of the hardest years. I know all of us have had, whether it was everyone who got sick, and everyone who died, everyone who's had families under such stress but ultimately, we were able to pull together and continue to operate in a successful motion. So I wanted to express my sincere gratitude that as I inspire you or motivate you or excite you. I also especially want to thank you very much for everything that you do for us every day. And also what you do for us personally as well. And what you do for me, personally, thank you. And with that, I'll turn it over to Evan.

Thank you, Marc. So we have a lot of questions coming in about Slack, and they'd love to hear what you're hearing from customers on the acquisition.

Well, I've never seen so many exciting customer stories. Just this morning, I have been contacted by 5 CEOs of 5 Fortune 100 customers. I was think [indsicernible] if their Fortune 10 customers, several of them that are standardized on Slack through their whole company. I didn't know that. Actually, when we put together this deal that so many companies have Slack deployed and at such an incredible scale. That's been amazing to me. And it just makes me even more excited, and we are just continuing to respond to those customers. There's not very much we can say because the deal is not closed, as you know. But it's exciting to see the tremendous market momentum that's out there.

Great. Thanks, Marc. Our next question is from Mark Murphy at JPMorgan. Marc, you said, "The past has gone, and we're in an all-new digital world." What is your unique vision of the future of work post vaccines and how ubiquitous can Slack become?

Well, I think that the past is gone. We can't -- I talked about the 2019 Dreamforce Keynote. I'll be honest with you. When I got home after doing the keynote on Wednesday, I've watched all the keynotes for the last 10 years to kind of get it into context. And when you look at all of that, whoa, that keynote was nothing like anything we've ever done in the last 10 years. It was outdoors. I was at Salesforce Park. It was just me and Bret and one cameraman. It was incredible. And yet, it was probably the most viewed Dreamforce Keynote ever. You probably all have seen it, it's probably somewhere between 150 million and 200 million social views, far exceeds our expectation. It's not the only Dreamforce presentation that we've done. We've done more than 4,000 Dreamforce presentations, highly customized for our customers. Our goal is more than 100,000 Dreamforce presentations. We'll do another conference in the middle of December, which is our DreamTX conference where we're going to really kind of help provide collaboration. And we've learned so much in the last week about now what's possible is so exciting, and that gives me a lot of hope for the future. When I put that in context of Slack, well, I'm at home. You're at home. I'm working from anywhere. I'm working on the road. I always did work on the road. I was an early user of social media. You know that. I use it still aggressively. Of course, we built Chatter very early on. That was part of the keynotes that I watched was 12 years ago. That was amazing, and I love that. But then I was like, wow, Stewart took that vision far further than we have really could have thought. So when you put these 2 companies together, I love what Stewart and Bret said, it's a 1 plus 1 equal 7 equation, and that's a powerful thought for the future of these companies and their ability to be competitive in creating customer success, which is so important to us.

Thank you, Marc. Our next question is from Brent Thill at Jefferies. The #1 question on investors' mind is organic innovation. Can you discuss how you balance build versus buy? And what are the most important organic solutions coming to market?

Well, I'll start with the last part first. Of course, the single source of truth is probably the most exciting thing we've ever built. It's an organic innovation. It's the heart of the largest deals and most important deals that we're closing. You just saw AT&T. It's built entirely on a single source of truth. That idea that we're able to build a federated record across all of the customer systems of their customer is truly unique. And if you haven't had a deep dive on the technology, it's amazing. And then the ability to integrate with all the customer systems through MuleSoft, the ability to bring it into the Customer 360, to provide intelligence around it with Tableau. Now to be able to run it on any public cloud with Hyperforce. Whoa, it's like this is incredible what we can do for our customers. So innovation, organic innovation is extremely important as evidenced by that. But some of these things, well, we don't have the ideas around. We had the idea of Slack, but we did not have the idea of the ecosystem and the integrations and the applications and all the things that Stewart did MuleSoft. We did not have that ability to have a totally independent company that could integrate any system. Of course, we had Einstein Analytics, but analytics that customers love that's wall-to-wall in the enterprise, that's outside of our domain. That was -- we're really focused on CRM. So then to see those assets come into us or be able to acquire them, it's a healthy balance between organic and inorganic that makes it powerful. I think if you try to build it all yourself, it's a mistake. I know companies that are trying to build it all themselves. I had some CEOs who are trying to build it all themselves call me last week and go why did I not buy Slack? And I'm like, I don't know, why didn't you? It would have made a lot of sense. I have a lot of friends in the industry, you know a lot of these CEOs. We're obviously, partnering with each other, competing each with each other, we have relationships with each other. And a lot of them were like, wow, that was something that wish we had done. And by the way, in a lot of cases, and I'm sure you can think about it, that in the future of work, where you have a collaborative system of engagement against a robust system of record, well, there's only one Slack. When that asset trades, it's over. So why do you not want to have that asset as part of your portfolio? Because as now, we accelerate to $50 billion in revenue. And what -- we probably would have gone right to $50 billion without Slack. It's not -- was not a key driver. We have so much core durable growth in our business model. You can see the strength of our bookings, especially in the second and third quarter, the strength of our operating margin in the last 2 quarters, record levels. When you look at the guidance we've given for the fourth quarter and the first quarter, the guidance for next year, I've never been more excited about the strength of the company. And then you kind of go right to, whoa, with Slack, that's why my phone is ringing off the hook.

Great. Thanks. This next question is from Rob Oliver at Baird. We've seen a shift in recent years, governments prioritize in cloud and constituent experience, big opportunity for Salesforce globally. How do you see the pandemic accelerating this?

Well, the government opportunity has been accelerated radically by the pandemic. We've never seen growth rates in our government business like we've seen this year. These are triple-digit growth rates for our government business. We've rolled out a portfolio of those deals on our earnings calls that we've done. We've tried to highlight some of those as well. It's not unusual for me to be speaking to the governor of a large state or the mayor of a large city or even the President of a country who's trying to figure out how are they going to battle the pandemic or how do they just provide better constituent management systems. Salesforce is extremely well positioned to do a lot of different things for government. And when you look at that Rhode Island story, the video, the live interview with Gina Raimondo is probably one of the greatest leaders in our country. At Dreamforce, well, it just plays out. I don't think Salesforce has ever been stronger in government and our ability to execute or be more relevant. When we rolled out Work.com early in the pandemic, and that was really about contact tracing, which is critical in fighting the pandemic. When we rolled out the idea that you need to do shift scheduling, when we rolled out the idea that you need to have health care management in your company all through Work.com. And now vaccines. I mean we have a light at the end of the tunnel. There will be a vaccine glut by the end of the first quarter. We're kind of coming down to the end, certainly in our developed countries, this pandemic as we all will get vaccinated within the next probably 90 days. And I'm sure you know, the vaccine management in the U.S., a lot of that will be managed by Salesforce and Work.com. We're very proud of that work that we've done in our vaccine management system. So these are opportunities to communicate and share with government and show them the benefits of using a Salesforce platform and the ability to deliver speed to those government agencies is so powerful and to see the largest government agencies using Salesforce to fight the pandemic has been very gratifying to us, and it will be very gratifying over the next 90 days as Salesforce is used to help manage the vaccinations of all of us. Because, as you know, many of these vaccines require 2 injections, which means that we're going to have to keep track of when people are coming in for their first -- for their second, their reactions, all of those things, the critical information technology challenge and a critical logistics challenge. And Salesforce is grateful to be able to offer our services at this critical time to the world's governments in doing this.

Great. Thanks, Marc. So we have a couple of questions here. Everyone is completely impressed with the $50 billion number. But a lot of questions on margin. Would you like to share your margin philosophy for the company?

Well, we continue to grow our margin. We're continuing to be focused on our operating margin, our free cash flow, building the strongest financial asset in software is our goal. The key to building the strongest financial asset in software is growth and getting to that initial $50 billion number and beyond. And you can see it in our business model. I've spoken to so many investors and kind of said, "Hey, here's a great way to figure out exactly how we're doing. We've got revenue this year. We've given you that guidance, $21.1 billion. Hopefully, we're looking forward to doing better than that. We had our bookings in what we call our ACV. We don't exactly give you that number. It's not something we've ever done in 21 years. Give you our attrition. We generally model that for you. We -- you have to subtract that attrition rate off of the revenue model for this year. And then you have next year's number, and we're giving you that guidance. Initially, it's, I think, 25-point -- what is it, Evan, 5 or 6 for next year? What is the number that we're doing for next year? I can't remember.

$25.55 billion.

$25.5 billion for next year. So those are a couple of the variables that are there. And then you can see that just the raw pure growth inside the model. Even when you subtract Slack because that will just be a stub [ pillar ] portion for next year because we'll only have part of that on board. And then you can see exactly where we're counting for fiscal year '23 or '24, '25, all the way to $50 billion we've given you the pieces to be able to look at our model, how we run our business and built deep inside that model is tremendous margin and cash flow. And the way that we can see that is by looking at the second and third quarter of this year, where we just kind of let it rip. There was no travel. We were reducing real estate, travel and real estate, that's 5 points of our revenue, just right there. So when we look at -- we're not even using our real estate and our travel are like in -- that's why you saw a 20%-plus margin in the second quarter, almost 20% margin in the third quarter. And we're just trying to hold on and go, whoa, what's -- how much can we go? So we're looking at that. Then we see a major transaction coming along like Slack? Well, yes, it's going to impact us somehow. But the reality is, wow, it's going to accelerate our revenue, our market share and ultimately, our ability to be successful with customers, which is -- it's why we get up in the morning, by the way. Like I've already said, when I got up this morning, my text was filled with CEOs talking to me about the Slack deal. I cannot believe it. I've probably interacted with 100 CEOs in the last 7 days just to talk about this. And one CEO, who is of a large telecom company, one of the largest in the world, is wall-to-wall with Slack. I didn't even know they were wall-to-wall was Slack, they're large customer of ours. They're not one of our largest customers. They're a good size customer. We always want to do more with them. It's somebody who I have a great relationship with. It's why I'm on text with. He's actually an incredible person. Does a lot of amazing things in the world, and we're talking about Slack and how important that is for his future. I'm like, wow, what is that going to mean when we can actually close that deal, talk about how we're actually integrating, what we can do for him. I mean, right now, all I can say is, well, thank you for contacting me. And I'm going to get back to you as soon as the deal is closed. So right now, it's an opportunity that's significant. Now we have those relationships. We have the relationships with the C-suite. We have the relationships with hundreds of thousands of customers. And of course, we have a -- well, we have one of the very largest and most important and highest integrity and highest performing enterprise Salesforce's World. It's grown tremendously, especially over the last 12 years as we've grown from $4 billion in revenue to $21 billion this year, amazing. But we have a tremendous distribution capacity, as Gavin mentioned, it's highly verticalized. It's got a new management team on top of it, which has been amazing this year. We have these amazing new managers led by Gavin, and we're ready to go to another level, not just a distribution performance, but in this kind of product vision. And when you have a tremendous product visionary, like you saw Bret outline the product vision, especially at Dreamforce with Hyperforce and all the kind of capabilities. It's like, wow, this is something that everyone wants to talk about and how we can make their organization better, and that's very much what we're working on today. And as we do those things, we know because we see it in Q2 and Q3 the huge operating margin and cash flow that can come out of it. It doesn't mean that because all of a sudden, we're hitting record levels of margin and record levels of cash flow that if we have the opportunity to do something with Stewart, that we shouldn't do it. I think it would be a huge mistake if we had passed on that opportunity. It trades once. And I know that because I've talked to a lot of investors who have said, well, yes, we were investors in Slack, and we think it's a great company. Yes. Did you see his quarter, it was amazing. Did you see our third quarter, by the way, it was also amazing. So you're putting together these amazing companies, also Tableau, also MuleSoft. Our ability to deliver something to customers is truly unique, and that's why we're creating one of the greatest -- one of the greatest software companies of all-time and with the right values for the current time, doing well and doing good. This is very important to us as well.

Thanks, Marc. Let's move into some product questions because we've had quite a few come in. Terry Tillman at Truist. As you get more into industry solutions and enterprise expansion, do you potentially see moving well beyond your front office routes into back office solutions?

Well, I think you just saw us deliver kind of a hybrid with Slack with MuleSoft, with Tableau, I mean, we're not just CRM anymore. We have -- we're all about data, too. So we have the ability to help customers manage their data. That's the system of intelligence. We're helping customers manage their engagement. That is their collaboration and their documents and their interaction with their employees. And as you heard with Slack Connect, the ability to connect to partners and outside their company, intracompany communication, inter-company communication. And of course, the single source of truth, helping them to create a single unique record for the customer. So I think, yes, we're doing customer CRM. But look at how we're doing data, look at how we're doing engagement, look at how we're doing intelligence. I think we've already moved past CRM. We've been very focused on CRM. That's our core. It will always remain our core. It kind of has to be -- I mean, you can see we're #1 in sales. You look at the IDC numbers. We're #1 in service. We're #1 in marketing. We have this unbelievable platform, enterprise-level commerce. You saw what we did in the holiday weekend. Did you realize the level of reliability, scale and trust we also delivered? It was unmatched during the holiday weekend for these large customers. They're coming to us realizing that we're going to deliver what they need to go fully digital. So yes, we're tying into the back end. Are we going to do a general ledger, it's not on our short list? Are we going to do a payable system, not on our short list? It's also not on the customers' priority list right now. They are really focused on, "Hey, I want to have great relationships with my customer. I want great relationships with my employees. I want to help manage and collaborate with those workflows. That's why Slack is so powerful. I want to know about that. I want to have the intelligence, the analytics, the visualization, those [ visi's ]. You've seen that amazing magic of public.tableau.com. The breadth of that is amazing. So I think all of that kind of is evidence that we've probably become a little bit more than a CRM company, but we just acquired a company with a stock ticker symbol WORK. I like -- we have a product called Work.com also. So yes, it's -- we're well beyond that at this point, and we're able to walk into a CEO-level conversation, which we do every day, and give them a vision for the future. And what we say is, hey, the past has gone. It's over. The future is coming. It's all digital. We know that. It's all remote. We know that, too. And we're right here in the present moment. So what are we going to do to help you be successful? And here are the capabilities that we can offer you.

Great. Thanks, Marc. Another product question here from Pat Walravens at JMP. What would you like to be able to do in AI that you can't do today?

Well, I -- that's a good question. I mean I don't know if you saw SharkEye but it was pretty amazing that we have this -- it was in the New York Times. We've partnered with the University of California, Santa Barbara, and we have our Einstein and our deep learning technology, we're flying drones and when they see great whites in the water in Santa Barbara, they're calling the beaches and they're getting the kids out of the water. So that's very exciting. We're trying to use AI for good. We're also using AI to just help consumers make better buying decisions on commerce. It's one of the reasons we had such tremendous growth in our commerce engine this year. It's just a phenomenal product. Of course we have a tremendous prediction engine when it comes to sales and service. Einstein has been amazing. And where we're going with Einstein is it just should be built -- everything, all the AI -- it should just be built in, it should be automatic, it should be seamless. It should be just well understood, it just should be part of every application. And that's a huge part of our vision to build it in. Also when it comes to helping customers to onboard AI, we don't see customers' data. So when we deploy Einstein, the data is black to us. We don't know if it's normalized, we don't know anything about it. Einstein figures all that out and is able to apply all this amazing new technology. So our AI team has done just phenomenal work. I'm very proud of them. They've done tremendous research. They've done tremendous additions to the field, and we're also trying to do it with the right ethics. We're trying to do it with our right values, which is something that Salesforce is known for. That's also a key part of AI for us as well, which is why I offered up this critical story.

Thanks, Marc. Next question is from Derrick Wood of Cowen. What were the challenges in taking on the social collaboration vision with Chatter 10 years ago? What did you learn? And why is this time different as you take in Slack 10 years later?

I think it's such a good question. I went back and I looked at everything myself because I think it was very important to have that perspective, and I went back a dozen years and looked at our vision and all my notes with Parker about building the social enterprise and building Chatter. And Chatter is more than the UI. It's also a lot of changes we made in the core internals of Salesforce that we're going to be able to leverage into Slack in terms of our APIs. And the way that our product actually works at its core, our ability to -- Stewart mentioned this briefly, but so important route and approval. Route workflow. That's all built into Salesforce already. So we just need to plug that pipe right into Slack a little bit more aggressively. We've done a lot of the heavy lifting in those areas. A lot of the work that we did in the social enterprise, was on the back end of the Customer 360. Our engineering teams did phenomenal work. And if you remember back a dozen years ago, we were competing against Yammer and David Sacks' amazing vision, was acquired by Microsoft. Those were just Wild West days, Facebook was really showing us the path, Brent was at Facebook as the CTO. So looking back at all of that and then going, wow, the leap that Stewart has made in terms of creating an industry, creating a phenomenon, not just the virality. But when you look at his ecosystem and the applications that he built a platform of platforms that he's automated the workflow, that it's a user interface that's easy to use. I mean that has been beyond any dream we had. And then when we're able to leverage all of our internals back up into his platform and user experience, I think we're going to offer customers something like they've never seen before. And I can't wait to get to the demonstrations after we close because we need just some time to integrate and to get that moving. And that will be just a dream come true for us because this is something that we have always wanted to do. And now with this acquisition, we'll be able to offer our customers something truly unique and it's, look, there'll be 2 things that are really important to Salesforce, Slack and Customer 360. You put those 2 things together, like I said, it's client server 2.0. So there's a lot of people out there with servers like Salesforce, a lot of strong back end capabilities, having a strong client like Slack on the front end to manage the user experience. And by the way, Bret also has some phenomenal capabilities with Quip that he built and plug all those things together, it's a wow.

Thanks, Marc. Here's a pandemic related question for Michael Turits at KeyBanc. After the initial COVID headwinds, what gave customers the confidence to reaccelerate their investments in Salesforce despite 2021 macro worries and can it continue?

Well, I think the whole year has been a surprise to us. You probably remember, in Q1, here we are February, March, April is our Q1. Right in the middle of Q1, the pandemic kind of went global and worldwide and everything shut down on us, and we didn't really know how to operate. We didn't really know what to do. And we became very bearish and worried about our business. We even degraded our guidance, which Evan will remember very well, and then we're like, well, we're not sure what we're going to do. I think we're -- I think we dropped to $20 billion or something. We were like really worried. That was Q1. That all of a sudden, we adopted a new pandemic operating model. It was built on some new values that we had never exactly tried before at Salesforce. It was kind of a crazy idea. And I kind of came up with this idea that we were going to focus on things like relevance and enablement. We were going to do some strategic work. We were going to do some tactical things. We were going to make a few tweaks and turns in our business model, how we communicated with our employees. We even started weekly calls, which we're still doing today. We built new products like Work.com. We did all kinds of exciting new things. And all of a sudden, wow, our pipeline was like something we've never seen before as we started to enter Q2. In fact, when we got on the call with you to talk about the Q1 is not exactly what we wanted. We're like Q2 is very optimistic. But Q2 far exceeded our expectations and we're like, whoa, it also showed us new ways to operate. As I mentioned, we weren't flying around. We weren't in our offices. And then Q3, the same thing, again, we had great pipelines and we manifested them. We had tremendous distribution capacity. We had tremendous enablement of that capacity, we also worked to give our sales executives the confidence to get on a zoom like this and to talk to a C-level executive. We all of a sudden found that we could make calls at levels in the company we could never make before. And we've encouraged our customers to do the same thing. I don't think there's been a more important moment in history for sales organizations, B2B sales organizations. Those sales organizations who did not automate, who did not know how use Zoom, who did not know how to use Salesforce, they were at a very significant disadvantage this year. Those were the key technologies to accelerate your business and to go faster as evidenced by our own success. And we're seeing that play out in Q4. You can see the guidance we've given, and we've also given guidance for Q1, you can see we're continuing to see this play out. So we have this new exciting operating model. We've also mentored and educated many CEOs on this operating model. I don't know if you've seen it, looks like a wheel or pie. It has many different slices to it, and we try to help organizations tune each one of their components so that they can be successful during the pandemic. For some organizations, it's difficult. Not every part of Salesforce has hit it perfectly. We have some managers who still, I think, are hanging on to the past that they need to, like, move forward. But enough of them have moved forward that we saw this performance, and we raised our guidance to a point now where it's above our original guidance for the year, which I think is kind of amazing that we're going to deliver $21.1 billion. And I can't remember what our original guidance was, but I think it was about $21 billion or something like that. Is that right, Evan?

$21.1 billion.

So now we can say, here we go, we're going to -- we're going beyond our original guidance. So we can now say, okay, we have our sea legs. We're -- and at the same time, there's a light at the end of the tunnel. The pandemic is coming to a close. Everyone's going to get vaccinated in the first quarter. But then when we're back, we're not going to just forget about what we learned. We have learned a lot of valuable lessons. COVID has been horrible for a lot of us. Being at home every day, trapped at home, maybe a lot of sickness, family members sick, a lot of death, horrible stories, terrible news. But there's also been a gift of COVID. We've seen it play out in the environment. We all saw those early videos of the dolphins going back into the Venice canals. There has been other gifts of COVID, things we've learned about the world, things we could do better. While there's a gift of COVID also at Salesforce, things we've learned about our own business, maybe things that we were doing too much of that we will do less, things that we weren't doing enough of that we will do more and I think that we have learned a lot in COVID on how to be a more successful company. And when we come out of COVID for fiscal year '22 next year, starting in February '21, and we begin our 22nd year of business, we will have a very different model of business. How we've gone to market will change. How we structure our business will change, where we spend our money will change. We're making a lot of changes. And Bret has been on. Bret has built a phenomenal plan to help us reshape the company, based on what we're learning, we're even still learning things right this very minute, things we can do better, especially things that we're letting go of, things that we're bringing in increasing our productivity. So that's definitely where we're going.

Great. Thanks, Marc. A couple of people have asked as a follow-up to one of your earlier comments. Can you help us understand the pace of large M&A? And how you expect that going forward?

Well, I just really have not seen that much M&A going forward. Even this was a bit of a surprise to me. And we have such a comprehensive set of products, such a comprehensive set of solutions. We are -- have so much work we can do ourselves. We talked about there's so much organic innovation still to accomplish that I was surprised to see a deal of this size and scale. And it's not just a great company. It's not just a great product. It's a great brand. That is really unusual to be able to acquire such a great brand. We also saw that with Tableau. A market-changing brand and a leadership brand. So when you bring all those things in, it's not something that I really saw. And I really hope that the path to $50 billion is not marked with a lot more large transactions, but it's just more iterating us on the core of what we're doing, not that we're not going to do deals in the future. Of course, we're always looking. We have to talk to people. I'm not going to just let Stewart sell this company to a competitor of ours or to let Stewart sell this to somebody that's not going to benefit Salesforce. It wouldn't be right for our shareholders. It wouldn't be right for our customers. It wouldn't be right for the future of this financial asset because when we get to $50 billion, we're not only just going to be the largest enterprise software company in the world or the company that got there the fastest, but we want to be the best, and we want to have the right values. But we want also to have that level of customer success, that level of innovation, and the continued focus on doing well and doing good.

Thanks, Marc. We're going to go ahead and make this one the last question. And it's from Phil Winslow at Wells Fargo. Mark Hawkins said the first question that he received 6 years ago as CFO was can Sales Cloud grow double digits? Clearly, the answer is yes. With Sales Cloud sustaining double-digit growth even today, when you think about the core 17% CAGR for Salesforce, could you help us unpack this? What clouds do you think that we'll look back at and say, wow, that growth surprised us, just like Hawkins' comment about Sales Cloud 6 years ago?

Well, I think there's going to be an irony in that because I think the irony of Mark's first question of how do you get Sales Cloud to grow double digits will be Mark's last question too as CFO, and then he'll become an adviser to Amy. And let me tell you why that is because as we onboard Slack, it makes Sales Cloud better. I mean, Slack makes Sales Cloud a lot, lot better. I know because I worked with this great company, Time Magazine, and I hope all of you are Time Magazine subscribers, Time.com/subscribe. It's a great organization, uses Salesforce and it uses Slack. And I'm on Slack every day and working with our management team there. And I'm like this amazing product. But I'm front-ending to Sales Cloud. And Slack is amazing, phenomenal user interface for Sales Cloud. It makes our sales cloud better, makes our service cloud better, makes our marketing cloud better, makes our platform better, makes Tableau better, makes MuleSoft better. It makes everything we do better. And with just some slight tweaks and slight additions and changes in plugging this API in and making this happen and make that go. And you can imagine a Slack plus Sales Cloud product, which is the next version of Sales Cloud, what sales cloud customer doesn't want the new version of Sales Cloud that has this tremendous Slack productivity user interface. Think about that. So yes, Mark, how does Slack -- how does Sales Cloud become double digit? And the answer is Slack. Because I think that is why I think Slack becomes so powerful. As I said, it's the client and this server, Sales Cloud is the server, of course, at that point, Slack is the client. It's client server 2.0. It's the next wave. It's the 2 things that become important to Salesforce are Slack and Customer 360. Put them together, that's how you get these things to continue to have tremendous organic growth. And at the same time, Slack grows. At the same time, Tableau grows, at the slight time MuleSoft grows, they all have independent sales organizations, and they're all independent companies going great on their own. You put it together, the opportunity for the customer to be more successful is just awesome. And that is what gets me really excited right now. And you probably can tell, I've never been more excited about Salesforce. I don't think we've ever had a more compelling vision and for these large customers, really for all customers. And certainly, for all of your companies. I know a lot of your companies are Slack users. I know a lot of your companies are Sales Cloud or Salesforce users. I -- you can imagine for your own organization, what's going to happen when we can put these things together and tune and tweak them so that they work better together. Working better together, getting these assets working better together, which is Bret's good primary goal for the next few months. As soon as this thing closes. Wow, that will be a tremendous opportunity for us. And what company is better differentiated and better positioned for the future than Salesforce? Who is better prepared to go, not just the $50 billion, but beyond? What company and software has that client and server orientation, has that customer love, has the brands that companies love and trust and have respect for? And at the same time, we're also practicing stakeholder management. We're doing the right things for our employees, for our customers. For our shareholders, your key stakeholders, too, we have you in mind as well. And the planet is a key stakeholder. We're a net zero company already. You can see that in our stakeholder report. So as we go forward, we're very well positioned for this next generation of the world, for our industry. And I hope we're inspiring others in terms of what they can do with their companies and where they're going. And I've never been more excited, and I'm looking forward to working with all of you. And talking to you more about our vision for the future, whether it's a product or whether it's our key KPIs as we hit $50 billion because this is an amazing moment for Salesforce. It's just a -- it's a new world. We're in a new world, and Salesforce is well positioned to execute and succeed in that world.

Thank you, Marc. I know the entire investment community really appreciates you coming out today. Thanks so much.

Thank you. Great seeing you.

Great. Well, everyone, that concludes our activities for today. But before we end, I want to bring Mark Hawkins back in, if we could. And then just one quick wrap-up item. Content of today is posted on our website available for you now for you to review and follow-up on. And with that, let me pass it over to Mark.

Well, thank you so much, Evan. And Marc Benioff, thank you so much for all that. We've had really a great set of communications today. You've heard from Evan and I about the business opportunity and the strength of our core and this truly generational opportunity. You've heard from Bret and Gavin and Stewart of Slack. We're super excited in how it builds with the Customer 360, which is an amazing differentiator for us to take us to capitalize on this generational opportunity. And then of course, you heard from Marc right from the top, his vision and all that he sees and just hearing the strength of our company as we go embarked on this next leg of the journey to double the company yet again due to our solid, strong performance, our business model, our innovations and our values. I agree with Marc, and I hope that when you leave today's presentation, we have really helped you see the generational opportunity we have with the right products, the right market position, the right TAM with the right growth, with the right unit economics, the stickiness of the people who get to that hill, that unfortified hill and tackle that great opportunity to serve the customer in a unique and strong way. Our vision, our values, our focus on the customer. This all drives us today. It's passionate opportunity to go serve the customer, follow our values and capitalize on getting to $50 billion faster than anybody ever in the history of enterprise software. That's been our goal today. I want to thank Evan, our Investor Relations team for doing a great job organizing today. And lastly, on a personal note, I want to thank you for 15 years in the capital markets and have a great opportunity to serve you. Thank you for your support. Thank you for supporting Salesforce. We treasure this relationship as a company, and I do as well personally. And with that, I wish you and your families a safe and enjoyable holiday season. All the best. Thanks so much.

Happy holidays, everybody. Goodbye.

Happy holidays.