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

Good morning. Welcome to our fireside chat with Salesforce. I'm Terry Tillman with Truist Securities. I cover application software and SaaS companies at Truist, and I'm extremely pleased to have Salesforce chatting with us today. And in particular, we're going to hear about MuleSoft. Before we get into our fireside chat, and we're going to keep it really interactive, I need to read a quick disclaimer. This call is arranged by Truist Securities Research for use by institutional investors and issuer clients as defined by FINRA. If you're not an institutional investor or issuer, please disconnect at this time. For required disclosures, please see our website at truistsecurities.com or our equity research library. With that, today, on our call, we have Brent Hayward from Salesforce. Brent is CEO and General Manager of MuleSoft. This has been a great story of size and scale, and also, I think, been one of the most successful acquisitions to date from Salesforce. Welcome, Brent, how are you doing?

I'm doing great, Terry. Thanks for having me.

Thanks for being here. So hopefully, we can have some fun with this. We've got a bunch of questions I wanted to go through. They're all going to be easy, I promise. But maybe first, just for folks that don't know you that well, maybe you can provide some background because you do have quite a varied background and then a long history with MuleSoft.

Sure. Happy to do so. Well, listen, good morning, everybody. I'll go back to, I guess, cutting my teeth in the industry. I spent about the first 10 years at Andersen Consulting, now Accenture. My job was really to go help IT deliver very large-scale digital transformations and did that mostly in the high-tech industry, a bit of comms and media. And I think it was back then I developed a pretty deep appreciation for how difficult connecting and integrating systems were and delivering some of these transformations. So we actually invested in the company when I left, the name of InQuira, and I was employee 12 at InQuira. We did about 5 years of work, and then we're sold to Oracle. It was a large knowledge management capability that underpins the semantic search and response in the contact center. And then that took me to MuleSoft, it's been 8 amazing years. I joined it just under 100 employees. We had sub-$20 million in revenue. A number of different roles, obviously, as we've built the company up to the size that we are now. We took the company public in 2017. And then in 2018, one of our best partner Salesforce came calling, and we were acquired, just a short 2.5 years ago. And I think that lit the next couple of rocket fuels in our success journey together. It's been a really amazing last 2.5 years as a part of Salesforce and has created, I think, a velocity and a set of opportunities. And we know we were growing fast, but this pinned our ears back to the next phase of growth.

Yes, under $20 million in sales. Yes, I'd say you've had some size and scale then. I think I may have understated it. I think at the Analyst Day in December, it was mentioned that MuleSoft, yes, it's now at $1.2 billion in annualized revenue, achieving high -- mid-30% growth. So the business has clearly scaled significantly since Salesforce acquired you all. Maybe you could give us some observations of what are some things that stand out with the acquisition that you think has made it so successful with Mule having the care and feeding and continuing to scale so rapidly?

It's a great question. Actually, the growth has been phenomenal. I think our run rate was around $250 million at the acquisition. We just -- as of latest earnings, that's up to nearly $1.5 billion. And so if you look at our subscription revenue, we've just passed the $1 billion mark as well. So companies -- 2,600 plus companies are depending on MuleSoft every year, with $1 billion and growing, to deliver value for them. I don't know that it was widely understood when we were acquired, but the fit has been incredible, and that's because Salesforce has been trying for years to deliver the premier customer experience in the market. And to do that, they've built out this amazing platform, the Customer 360. And when you think about the Customer 360, it's designed to create connected experiences, which requires a single view of a customer, a single view of an employee, a single view of a partner. But the reality behind delivering that vision is organizations have thousands of different systems. And so to deliver these connected experiences, just traversing a simple commerce transaction oftentimes takes up to 35 different systems, and organizations have legacy back-ends. They have data that's locked in different places. And so to really bring this vision to life, we needed to be able to unlock that data, connect all of those systems and bring that to the Customer 360 in order to deliver that experience. So I think number one, Terry, the synergy was there day 1. In fact, I can't tell you how many conversations we went into where, this amazing vision that potentially had an adoption risk in that they couldn't realize the vision quick enough because IT couldn't unlock the data fast enough and get it to the 360 work and have a customer impact. So whether it was an enterprise company or a mid-sized company, we were in most of those conversations almost moment one. So it was instant synergy. I think from the Salesforce perspective, it felt like what was a risk to adoption, all of a sudden, turned into a competitive advantage. We used to have to go tell IT, this was your dependency. We can now co-own that dependency and really drive this digital transformation together. So that's been a pretty incredible change. I think the second thing I might mention is it's really gone both ways. We have a number of customers at MuleSoft that were not yet Salesforce customers. We have a very large -- one of the top 5 oil and gas companies in the world down out of Texas, and they really wanted to get into field service. They've got thousands of different wells, upstream, downstream operations, and they were struggling to service those effectively. Salesforce has the #1 field service product in the world. But when you look at what was holding them back, the cost of integrating all the systems in order to take advantage of a cloud-based field service opportunity was this, and the value of field service was this. We were actually able to reverse that equation. We made the connectivity to back-end much easier. And all of a sudden, we've got a large field service implementation going on out there. So we're unlocking a lot of the backlog that was prohibiting customers from being able to take advantage as quickly as the Customer 360 as possible. So we're seeing it both ways.

Yes, got it. And so I was tracking MuleSoft, when it was still public, and yes, it was very disruptive for us. Maybe you could help for folks that don't know the story that well when it was public. What were you disrupting? Hand coding? Were you disrupting kind of old metalware? What were you typically disrupting?

Yes, great question. I think when you look at a lot of the legacy tools, there's really 2 vectors of disruption. The first and foremost is actually custom code. There is still a lot of hand coding. There's 20 -- it's estimated to be 22 million developers in the world. And there is a large percentage of those developers that still sit down every day and write custom code. And that custom code is incredibly brittle. When you think about the agility, things like a pandemic, needing to shift your business model, bring on new products and services quickly, the #1 enemy to that is all of this custom code. It's very hard to track. It's very brittle, it doesn't scale. It increases the cost of maintenance at the expense of innovation. When you're looking then into the tooling, a lot of the tooling was IBM WebSphere or TIBCO or I think some of the premier tooling when we sat in a client server in a noncloud-based world, it wasn't translating well to a cloud-based environment. The standards, as we were moving large payloads and moving into applications in the cloud, wasn't scaling. And so MuleSoft saw a real opportunity there. What started actually as an ESB, helping to more effectively do that backend very quickly, turned into a full life cycle API platform. And today, whether you deploy and integrate to mainframes on the back end or you're fully cloud native and all your applications are in the cloud. With a single platform we can handle from all the integration up to API, API security and monitoring, and we're doing it in about 1/3 of the time that would take traditional vendors to be able to provide that capability.

Yes. If people talk about the API economy and just the APIs, you hear it thrown around a lot, the -- your business had great tailwinds, and you're unlocking all this backlog and helping -- be able to get businesses to deliver on all the things that they wanted to do. But I'm curious with Customer 360. It means a lot. There's real IP there. There's also branding and marketing. The concept of Customer 360, has that created kind of additional tailwinds for just MuleSoft itself? Like what is that doing beyond just the concept of like marketing propaganda? Is it resonating or creating even more kind of incremental demand?

It is. And I think when you look at the traditional buyer at MuleSoft, it's the CIO. And the reality is that IT in the business are still not wired together in a way that helps them go fast. I think we are having far more conversations where we're connecting the chief marketing officer with the CIO and able to actually bring these things, 2, together to go much more quickly. And that comes with the 360 buyer, who oftentimes a chief revenue officer, CEO, key buyer, with the strength that we have in IT in mobilizing that capability and ultimately, it translates to speed. I think with most customers today, especially in the last 12 months, we've seen 5-year plans go to 3 years. We've seen 3 year plans go to 1 year. What are you delivering in the first 90 days of this initiative? And I think it requires a lot of cooperation. We made 2 promises to IT, and we stuck to those to this day. One was we were just going to increase the clock speed of how they operate. This is sort of 50% technology, but also the way that IT has been working and building systems is fundamentally broken and it's not scaled for some time to meet the needs of the business. And so we offer a different operating model that's underpinned by this API life cycle. It ultimately translates to them being able to deliver a lot more capacity for much less maintenance, innovation agenda over maintenance agenda. But the second promise we made to them was to actually help far more folks within the enterprise increase the capacity for IT. And so I talked to you a little bit earlier about there's 22 million developers out there. There's over 1 billion, what we call, knowledge workers. These are incredibly educated, multi-degree, very smart individuals. They know the business process is better than IT. They're in the Customer 360 platform today configuring, they want access to unlock data. They want access to be able to integrate. And yesterday, we actually just announced a new product line. It's called MuleSoft Composer. It's the only product that actually sits right inside the Customer 360 console. When you log into Salesforce today, you get to Composer. And we're allowing IT to extend the privileges of API and API management to a business admin. They don't even know how to code. They can actually effect this with clicks. And it is still governed, still secure because security API and governance is the biggest challenge that IT has to continue to own over the next several years. So we're also unlocking, with 360, an entire new set of workers that's able to unlock data and do this very tied into the way IT is managing and monitoring the business. Pretty excited about it.

This might be a bad. I might be pointing something -- this might sound silly but a Citizen Integrator.

It is a Citizen Integrator. The difference, though, is you've got Citizen Integration tooling that isn't running on the #1 platform in the world that's robust for IT. And so we see this not as an or choice. Oftentimes, you stand up these Citizen Integrator tools, there'd be a security breach or an API problem where you'd hit a certain scale, and that will get tossed over to IT to solve. We think there's one opportunity, whether from SMB all the way up to enterprise to actually have IT and the business working together to increase the capacity for all of this work to get done. It's really ultimately about speed, but at speed at scale and with the top level security data residency resilience that you would want in a world-class platform.

I was going to ask about kind of where you're going with technology and new innovation. So you kind of -- you beat me to it with Composer. But is Composer -- is the value not so much on how you monetize it, but it's just continuing to kind of push along digital transformation agendas, and it just helps push more MuleSoft projects? Or is there actually a monetization model around Composer?

There is a monetization model. I mean we'll start inside out. Ultimately, we're trying to help IT unlock all of that capacity within their own organization to do this work. IT has done the hard stuff. They've unlocked SAP. They've gotten the inventory data out of NetSuite to allow business users to then compose applications and processes and workflows with that data, doesn't require deep knowledge of those systems. So that's, first and foremost. When we talk about Slack and Tableau and other capabilities, customers will be able to use Composer to externalize some of those capabilities, monetize those capabilities as well. So there's also an outside. We see that a lot in financial services today. We see that a lot in health care, in interoperability, the need to sort of take down the fourth wall and really engage with a large network of companies, applications and devices to deliver better connected services.

Yes. You earlier gave a good example, and giving examples in voice of customer kind of scenarios is helpful. So you mentioned the oil and gas company. Now were you saying they were a MuleSoft customer and then it basically pulled through service cloud with field service management? Was that the kind of...

That's correct. That's Correct. Yes.

Yes. Well, what I'm curious about is I was going to ask about revenue synergies. Has there been some areas where it's more than opportunistic, kind of the synergies playing out, but it's real programmatic? Could you talk about whether it's sales cloud, service cloud or commerce cloud? Has, to date, a lot of the activity and the revenue synergies been real kind of formalized institutionalized? Or is it still more it's just, hey, we just see a really interesting opportunity, and it's really opportunistic? Maybe you could talk about the revenue synergies, and are they more of that former where it's programmatic or it's more opportunistic?

Yes. I think it's like I might couch it a little bit different way, Terry. So I'd say about almost 75% of our opportunities are sort of one -- we call it 1 sales force. If you look at, let's say, Humana, right, leading health and well-being company. They were looking to figure out how do we -- across the entire patient life cycle from clinical to their social history, to environmental factors, to lifestyle factors, how do we ensure that Humana has a single view of that patient? And so we went out to solve that problem for the customer. That involved health cloud, that involves service cloud. That involved Tableau and getting that data to be able to visualize and do analytics. That involved MuleSoft on the back end, wiring together all those clinical systems, public and private. And so I really think that we're seeing more and more opportunities where we're bringing the full power of those capabilities versus the piece parts to the conversation. I think that has largely become the norm. Now certainly, once we're at an organization, they get excited about MuleSoft, and they realize the power that it has to deliver capability beyond CRM. So now we're all of a sudden getting into the -- deep into the bowels of ERP, deep in the bowels of logistics. Anywhere where there is friction around being able to open up data, orchestrate it and deliver the right experience, we tend to see extensions there. Same with Tableau. I was just in a conversation with Dan Miller, who runs the sales team for Tableau. It's been pretty incredible how conversations around our bread and butter, which is CRM and customer employee partner experience have just spawned into excitement around extending the technology use for other core areas of the business as well.

Yes. So one of the things I thought -- I'm actually going to go off script here, so I should be careful, but I'm going to try it. With MuleSoft, though, what I was intrigued early on is, yes, I mean, you really can start having conversations and seeing the taxonomy of like core banking systems, supply chain, logistics. So it is a different kind of rhythm, though, for Salesforce. What I'm curious about is how do you balance that with Salesforce's history though in front office software? And I've asked the question every so often on earnings calls, "Hey, when are you going to start going back office or middle office, what kind of core kind of productized platforms?" How do you balance that, though? Because I do see where customers will keep pulling you into other areas. And yes, you're touching a lot of the back office stuff now with MuleSoft.

I think it's blending together, Terry. I think when you look at customer experience in CRM, 20 years ago, that was a sales console and a Rolodex, right? Today, when you talk about impacting the customer, we have to talk about how do we anticipate and understand that customers' needs. How do we serve them in the best way with the most possible channels? How can they buy through us? How do we service them most effectively? How do we create lifetime of loyalty with that customer? How do we analyze their buyer behavior and actually bring predictive analysis so that they're being engaged in the channels that they want to be engaged in? If you really look under the covers of all of that, in order to deliver that world-class experience, it requires connectivity into the back office, right? We've got to have real time inventory access at every store. That's in an ERP application, right? We've got to be able to go analyze social trends. That's another applications as well. So I think you'd find it, there's this -- to deliver these amazing customer experiences, we have to be able to unlock and feed that data in order to deliver that promise. And then similarly, I think the CRM and experience story is actually translating back into the back office as well. And maybe the middle ground is employee. I mean we spent the last year talking about how do we effectively keep our employees productive? We have a large health care company out of Chicago, where for the first 3 months of the pandemic, they had to set up in the parking lot, laptops and servers, to be able to deliver to the employee because they were in a secure environment, pre-pandemic. And in order to do their work, IT literally had to provision real time devices and capabilities. You think about the employee experience tomorrow, you never meet the employee, you never interview the employee. Their laptop needs to show up at their house day 1. They need to be on-boarded digitally and not wired into any systems, right? So all of HR and I9 and all the things that we've got to do. That's now a 100% digital experience. All of those applications, I would argue, are back office applications. And if that customer experience needs to be no different than a customer or a partner buying your product for the employee.

Yes. With MuleSoft, I mean, yes, you definitely are increasing your relevance in just the conversation touch points with IT and the CIOs. Is it actually pulling through lightning and platform components, where they're actually building net new software solutions? I'm not necessarily talking a core banking solution, but you do have a vertical strategy, health cloud, financial services cloud. Are you seeing that what you're doing and the success you're having with MuleSoft, it's allowing you all know instead of buying something off the shelf, we're actually going to build one of these back-end systems, and we're going to use platform components from Salesforce?

Great question. It's actually been like from my product team, they are kids in a candy store post-acquisition because they -- if you think about what we were, we're largely existing as kind of this layer for composability that sits between the experience and the back office data and systems. And we've done really well because we've been able to create interoperability. We're neutral, we can integrate to anything. We're neutral, we can run on any infrastructure. And that's really important to organizations that want to take advantage of utility economies, things like Amazon and Google and yet don't want to tether their connectivity layer or their composability layer to 1 app or to 1 infrastructure. And that's where we've lived. At the same time, it's awfully nice to have experienced players to play with. And so when we launch a health cloud, we can deliver connectivity and interoperability to health cloud that delivers that experience completely to the customer in a far greater time to value than if we had sold them a health cloud front-end and ask them to go wire to get on the backend, right? So we're seeing synergies all across the portfolio. I think you asked where we see a lot of synergies in service, there's a tremendous amount of back-office integration and data to be unlocked around the service experience. We're seeing quite a bit of synergy in commerce, but also health cloud, financial services cloud, a lot of the new industry capabilities are sort of purpose-built for connecting to key applications and existing capabilities. I think health care, like EPIC and Cerner and some of these standards, if you can provide that prepackaged connectivity, Workday, prepackaged employee connectivity, we're just increasing time to value for these customers. And they can get going, delivering value to their customers much faster.

It's another question that wasn't on my list, so here I go again. But in terms of just the mind share of MuleSoft, both with users, I know we have Trailhead, and we have all this kind of educating this vast user base out there is one angle. But then also, like Salesforce has a lot of enterprise sales reps and they're global. What I'm curious about is like nothing ever happens in 1 quarter or 2 quarters. It's a journey. Where are you on the education of like the internal Salesforce that is large at Salesforce really knowing MuleSoft? They don't have to be specialist, I get that. So like where do you think we are in the learning curve for them? Is there ongoing benefits to be had from them just coming into the fold to understand the power of this when they're talking to these key accounts they have and then maybe you could chat on the user side? If there's anything around Trailhead or just kind of the notoriety you're getting across this large ecosystem of users.

Yes, probably 3 points there. One, there's always been 2 phases to these. First phase is you pull the teams together, you understand the synergy. There's obviously, day 1, a lot of interesting conversations to go have with customers. And so you see this initial blip of demand and interest. But the Salesforce team didn't really know what they were talking about. And candidly, the MuleSoft team really didn't understand the power of the 360. I think you fast-forward past that phase, which is about 12 months, typically, and two really interesting things happen that have been quite intentional. One, we've done a lot of work to make sure that the Salesforce rep really understands the value proposition behind connectivity and what we do. And we've moved far beyond, do you want some integration fries with your CRM burger and much more into how do we orchestrate and drive these processes at speed. Number two, we've been able to actually innovate. So we've been able to not just talk about it, but bring products to bear that are connected that deliver that value faster. Your proverbial 1 plus 1 is 3 for that customer versus them having to buy these apps and put them together on their own. And then the third one is when you look at our go-to-market, we're very much telling these stories. And if you look at our sales, our top 20 deals in 15 to 16 of those deals include MuleSoft, include Tableau. We are not only talking about but we are delivering and customers are consuming these more complete journeys and stories, and we have the power to go deliver them as well. This last year -- last point, Terry, is one thing that's very exciting for MuleSoft is given our size, pre-acquisition, it didn't make sense yet for us to orient ourselves around the industry. With the breadth of Salesforce's distribution and penetration into accounts, it made all the sense in the world to make that leap. And so over the last 12 months, we've taken our largely horizontal and geographic-based team and industry specialized all of them. So now we have complete alignment within the organization. MuleSoft rep wakes up today and has a dedicated core rep that they work with to be able to go deliver that complete set of value. And we've done the same in the partner ecosystem. We've been very fortunate. We've built a pretty amazing partner ecosystem. We've got over 20,000 certified architects and developers on MuleSoft around the world. We've built now a $5 billion economy annually in delivering MuleSoft. And so part of this is making sure that it's not just an initial capability but a sustaining capability to help these organizations go fast with skills in the market.

The -- as you were talking, I was listening, by the way, but I was also thinking. I can do both at the same time sometimes. You all had an event in Atlanta, I think, a couple of years ago. And it was great hearing about some of the customers. It was like truck stop companies and others in restaurants that they really are redefining what they're doing. And yes, MuleSoft was the COG. But what I'm curious about is you talked about verticals and so like aligning your sales teams to kind of talk verticals and industries. You talked about health care. I know financial services is big and key. Can you maybe mention a couple of other verticals? If we're going to look at breakout industries where MuleSoft and the connectivity with the experiences layer, where could be some next interesting areas where you could have escape velocity you feel like?

The public sector has been massive for us, and it hasn't just -- I think it's -- sense of urgency across all these industries has really ticked up. If you look at the top 5 most strategic imperatives for an organization, if there was any doubt whether we were in the top 5, there isn't now. I mean really digitizing and moving to cloud quickly and digitizing services is top of mind for everyone. It's only gotten more accelerated. But public sector, we were seeing really strong growth pre-pandemic. It only picked up since then. That's both state and local. I think a lot of that has to do also with just this phenomenon of security, data residency, privacy. So we are seeing significant contracts, multiyear contracts in public sector. Health care certainly has been significant. And the megatrends there are health care interoperability has been coming for a long time. And yet, there's still the need to have an incredible amount of compliance and security and HIPAA and all the standards that deliver that. The second one is telemedicine. I went to my first doctor's appointment in over a year, I'm embarrassed to say. I guess it's...

That's not good. Don't do that again.

I've been pretty healthy. But anyway, I had a knee replacement and was going in for my checkup. And he said, "We're now doing 80% of all clinical engagement through telehealth. And we only have patients come in for surgery or different procedures." And it was making him -- he was the guy that was spending 30 minutes talking to me about his real estate strategy because there was no reason to have all of this space. He wanted to move into a contact center. He said patients love it. And so there's this phenomenon around this move to telehealth. And we're not going back. I mean I don't miss waiting in those waiting rooms either. That's been big. Financial services is big. And believe it or not, in a -- I think the most at risk industry is -- has been retail and CPG. I mean one of our largest customers, AT&T has used this time to say, "I'm going to completely reimagine the experience for every AT&T customer." Whether you're on vacation, Terry, in Hawaii or wherever you love to vacation and walk into an AT&T store or whether you're using your Truist mobile phone or your own personal mobile phone and you call in, they want to know that you're the same person. They want to know the products and services you have. It's getting really complex with AT&T, partnering and delivering lots of services and apps directly to the phone. We are powering that entire experience end-to-end so that you are at the center, and that's with Salesforce, that's with Commerce Cloud, that's with Tableau, that's with MuleSoft. We have a lot of other retail and consumer packaged goods examples where really going digital is the last throw of survival. They either get this right or they probably don't exist or consolidate. So we're seeing a lot of money being spent in digitizing quickly around retail.

So that's good to hear. So AT&T, that was a milestone win for you all several quarters ago. So you are a key component of that?

We are. We just went live with our B2C, and we've started some important work as well around the entire B2B experience. So we feel like if you're a corporate customer, why shouldn't you have the exact same experience? B2B is becoming B2C. And so that's one of our largest engagements. But also, again, another illustration like Humana, Unilever, Bentley Motors and others where we're really imagining the full experience and able to lock in as a trusted adviser and deliver it quickly versus deliver a sum of piece parts.

I'm going to take on AT&T, not a bad way, but I was going to ask you about competition. I mean that's a big organization. They have lots of pre-existing relationships with, I would assume, everybody under the sun on the tech vendor side. What I wanted to ask about competition, I don't know if it changes when somebody is going to go really big, we need to redefine our business, which is what AT&T is doing versus we have these different kind of areas, we're going to do phases of digitizing things. Maybe the competition question is answered differently in those two scenarios. But like I'm assuming somebody like that, they could have looked at other players to help with API management and integration, maybe not full life cycle. But what do you see in competition? And is it the right way to look at it differently in those big bang kind of we're going to go really big approaches versus, hey, we need to just kind of modernize something?

Yes. I think the large and small have the same pattern. I think they're ultimately looking for a partnership. A lot of this is not assembling technologies. A lot of this is changing the operating model. The AT&T conversation is an interesting one. It's not just how do we assemble a bunch of technologies to deliver that experience. It's also how do I retrain and enable and set a different standard for how we serve these customers. Within our domain and IT, most of the CIO conversations I have, honestly, in every hour, 15 minutes is about the technology. Technology is very vetted. I mean we run 3.8 billion daily transactions on our platform. We scale like crazy. We have resilience. All of the capabilities that you would want, we're not talking about that. "What we're talking about is my organization has spent the last 20 years working this way, Brent. How can your team help us to work this way, which delivers on that speed, on that agility on that capability?" So what I'm seeing in the competition is you sort of have 2 -- you have 2 schools of thought. You either have acquisition of technologies that, yes, deliver efficiencies, help you go faster, but in the same operating model that you had before. And then you have these transformations, where it's a combination of changing the way the work is being done within the organization, changing the velocity with which development is done. Going from that mindset of I'm going to develop today to I'm going to compose today, that to me is where we're seeing the competitive advantage.

Yes. I'm a slow writer, yes. The one thing I was going to ask is can you share more about the model benefits of really serving mission-critical use cases and enterprises? Really, I'd love to hone in on maybe the strength of unit economics and just kind of how that looks beyond just the revenue growth, which has been impressive. It feels like you probably have some pretty interesting and compelling metrics in the business.

Yes. We're fortunate. As you said, one, we're mission-critical. I mean with great responsibility comes from the economic benefits if you can get it right. I mean I think we -- I think 2 years ago was the last time we publicly disclosed the specifics. But if you look across all the clouds, we were the fastest-growing cloud within Salesforce. We also have one of the highest retention rates. And I think that has really helped us. When you're in mission-critical applications delivering value, then your attrit rates tend to be very, very low. We've also had the advantage that we're primarily, today, in the enterprise account space. And so those tend to be even meteor challenges, bigger problems at scale. There's traditionally a pretty low attrition rate within the enterprise segment. Now as we go down segment with products like Composers and others, I still feel very strongly that we will be at the center of key connectivity and key challenges. But I wouldn't be surprised if there's a little bit more churn just because then all of a sudden, we enter into the capability that SMB and mid-market, some of those companies turn over, go out of business and so on. The second thing is we have incredibly high margins. We're very fortunate to have this partner ecosystem that we're talking about. And while we've built a strong services team, we deploy that services team really to ensure that the IP, the know-how and the capability is with the customers and with the customer's partners that are their primary staff augmentation to do work. And so it just affords us a business that has a very rich margin on the product side, a very low attrition rate and then a model that really adoption seeds adoption. So the more you use our product, you think about building something today, a map service as an API, public or internal or an order service or an inventory check service that may be used on a mobile application on the Salesforce platform to look at real time inventory. Well, the whole point of the platform is to be able to discover and reuse that capability. So now that same inventory check service is being used by the web app. Now that inventory check service is being used to launch a real time Super Bowl promotion. Now that inventory check service is being used in Tableau to optimize inventory across all of that. Each one of those touch points, one, you can see the value of reusing that service. We can secure it. We can monitor it but it creates a lot of stickiness within the organization. These mission-critical services become very vital, and then their use becomes highly scaled as they think of different ways to consume that service to add value.

Yes, I'm getting sad. We only have 3 minutes left. I want to try to jam in a couple. So no pressure, but if I get to it, you're going to have to answer, too. So are you ready?

That's good. Speed round.

So the resiliency of the business throughout the COVID, which have many chapters to it, in and of itself. I assume that this has been one of the more or most resilient businesses from new bookings standpoint.

Yes. If you take away the -- what I call the Q1 pause because, for us, we didn't see a lot of pipe go away. We just saw a lot of pipe push. And I say it with a lot of humility because our customers have been struggling. You wouldn't have known there was a pandemic Q2 to Q4 with the MuleSoft business.

Got it. And I don't know if I'm going to become the CDP analyst. I asked on the last earnings call about CDP. But it's interesting, though, because that is about data, and that is about kind of composing new marketing use cases but really getting at the data across all these different channels. Is there any angle here on MuleSoft with CDP? Or am I in the wheats?

No, there is. It's a really good question. I think our customers are having 2 challenges, right? One is unlocking the data. We do that incredibly well, but you also have data residency and data resilience, right? Once you unlock it, ensuring that it's in the right place, it's protected that we've got abstract mechanisms to govern the data that retains privacy and others, so I think it's actually a really important and interesting capability. I don't know that CDP -- when I look at our customers, CDP doesn't have to be the answer for all data interactions, right? Some of that can continue to be real time, continue to be orchestrated. But it's a really powerful capability for always on data residency, always secure data. When I look at some of the synergies we have this year and going forward with Tableau, we have a -- it's a future product. Please don't make any purchase decisions based on it. But we do a lot of Tableau integration today. And one of the things I'm excited to release later this year is we're going to have a capability that every piece of data flowing through MuleSoft automatically can be fed to Tableau. So if you're a CIO and you're using Tableau as your visualization engine, how will we just take that work that you've done once and get it into your data and visualization? And working with the CDP and being able to leverage that as a source of data and a destination for data is really powerful. And I'll go one more, Terry. We'll be able to actually take action because these systems are connected right within Tableau. So if looking at reports and visualizing data is the way as an inventory manager you work, how about you never have to swivel a chair again over to NetSuite or SAP? How about we put that next best action to level inventory right within Tableau? Well, with MuleSoft, we have the ability to go round trip. So you have analytics, CDP, you have Einstein and the ability to really look at and model this data effectively next best action. And how about we let you actually take the action in Salesforce or in other systems director?

Save a customer or avoid an abandoned shopping cart?

Yes. It's exactly it. Avoid the swivel chair, which is still, frankly, going on way too often in our business. It's 2021. We ought to get on with it already.

Well, on that note, thank you, and good luck in calendar '21. I've really enjoyed this, Brent. It's nice getting to know you and wish you all the success and appreciate your time. And hopefully, everybody that tuned in here got value out of this. Thanks again.

You bet, Terry, good to see you, and I hope to see you soon.

All right. Take care. Bye, everyone.