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

Welcome, everybody. Delighted to kick off the conference today. Great to see you all here. We are very fortunate to be kicking off the conference today with Salesforce, CFO, Amy Weaver. I wanted to get to a couple of administrative things before we get started. First off, again, welcome, everybody. Great to have everybody back live for our in-person conference, the first one since 2019. We have 500 investors here. That's up 30% since the last time we had an in-person conference. So great to see all the attendants. We have 160 companies here. A couple of administrative items. If you need to make changes to your one-on-one schedule, the desk outside can help you there. All the lunches and breakfasts, meals will be served out there, buffet style. And welcome, everybody. We're looking forward to a great 3 days. I love these conferences. I love our conference because I learn a lot from companies like Salesforce. And looking forward to an exciting 3 days. So thanks, everybody, for joining. And with that, Amy, welcome. Great to have you here.

Great. Thanks for having me.

Yes, absolutely. I think this has been a number of years since Salesforce has participated in the conference. And great to have you here. You're coming fresh off of some great results last week.

We are.

So why don't we just start there? Maybe with some of the points you'd like to highlight from the Q1 earnings call.

Sure. Well, first, great to be here. I have to say, when I agreed to do the 7:20 slot, I was expecting maybe 3 or 4 people would manage to get out of bed and get here. So this is a very full room. And good morning, and thanks, everyone, for being here. So last week, we did announce our earnings, a really solid Q1. I'm very, very happy with our financial results. We had very nice beats on revenue, on op margin and cash flow, all beating consensus. Two numbers I would point to that were -- I don't think got quite as much attention. One was the CRPO. So we ended our -- we ended Q1 with CRPO of $21.5 billion, which I think is just a great sign of the health of our business. And that came in at 21% growth, which is exactly where we had guided. But on a constant-currency basis, that was 24%. So really happy to see where that landed. The other thing I would point to is our attrition number, and we came in at between 7% and 7.5% on attrition for the second quarter in a row. And those are record-low iteration numbers for us. So when I look at things like the volatility in the markets right now and the volatility and uncertainty in the world, looking at CRPO, looking at attrition, it really shows a very healthy business. And it shows customers that are continuing to put their faith in Salesforce.

Absolutely. Now that's great. And that was really the standout to me, was that upside both in CRPO and margin. And you've been talking about this disciplined growth path since you've come in as CFO. And the results are clear that you're executing very well on that.

Margin expansion come from a number of things. And so maybe we could unpack a little bit, what have been the sources of that upside that gives you that confidence to raise your full year guide 40 basis points, from 20% to 20.4%?

So definitely, the highlight for me of the call was being able to raise operating margin guidance for the year to 20.4%, so up from 20%. And this is up 170 year-on-year, 270 basis points in the last 2 years. And this is actually in the face of all of our M&A and some pretty strong headwinds. Slack, our largest and most strategic M&A, but also Traction on Demand. We have brought in Acumen, we brought in over the last couple of years. And we've been able to absorb that while increasing our operating margin. And something that you've heard me say quite a bit is that I want growth and I want profitability. And I think that these can go hand in hand. I don't think that these have to be a trade-off the way people have traditionally looked at this. And I think trying to bring discipline to growth and grow in this manner is one of the things I'm most focused on and really delighted that we could continue down that path.

That's great. And the attrition comment, I think, is significant. And over the last several years, the renewal rate for Salesforce, gross, has gone from 88% -- or high 80s to now 93%, which is significant. So maybe we could talk a little bit about what's been driving that, these multi-cloud deals. What is making Salesforce -- core systems and 360 deals, what's making the offering more sticky? And what's been driving that uptick you've seen in gross retention?

Like I said, the attrition numbers are something I really focus on because I do think that they -- because so much to the heart of our relationship with our customers. Are they renewing with us? Are they staying with us for the long term? And that's why I'm so happy to say this. Now it's interesting. A few years ago, when we were seeing our attrition numbers improving quarter-on-quarter, a lot of people kind of wrote that off to, "Well, you're just moving higher in the enterprise. And the higher you go, the bigger the company is, the less likely they are to attrit." And there's some truth to that. But what we're seeing right now is that our attrition numbers are actually coming down across customers of all size, a great sign. A few other areas that I think are particularly sticky, one is multi-cloud. Gavin talked about this a lot on our call, the fact that we're seeing more and more customers with 5, 6, 7 clouds. The more clouds a customer has, the less likely they are to attrit. The other area I would point to is our industries. So we've talked for a long time about focusing on different industries at Salesforce. And by doing that, what I mean is going into an industry, I would say financial services, and developing our products in a way that a customer can come and use them in a very tailored way that's specific to the industry and really get that time to value quickly. Bret Taylor likes to describe this as helping our customers start on third base. Over the years, we've developed 12 different verticals or industries that we focus on. These are by far our stickiest areas. I shouldn't say stickiest, but one of our stickiest areas. People come in with that, and because of that time value, that immediately seeing what they're getting, the industry's products have very, very low attrition. Now they're also one of my favorite products because they are also one of our kind of premium-priced products. So it's kind of a win-win on both sides. And this quarter in particular, we looked at our top 10 deals across the company. 7 out of 10 had an industry products in that deal, which is a great number. And of those 7 deals, they represented 5 different industries. So it's not just 1 vertical that's doing that, but it's great to see that success.

That's great. That's great. And on the gross retention, you guys have been saying all along that where the leverage in the model is going to come from is selling more into the installed base. You have a sticky core installed base. You have these faster-growing businesses like Demandware, Commerce Cloud now; ExactTarget, Marketing Cloud; Tableau, all growing in this kind of 25%-plus range selling into that installed base, lower cost to book those types of sales because those are renewal deals. Is that how we should think about that key source of leverage in the model as you think about margin expansion, is it just that natural leverage in the model that you -- that is behind the company...

I think there's definitely a natural leverage, and it starts with keeping the customers you have and focusing on their success and making sure that they want to stick with you. I think traditionally, the way to approach a lot of these things is through land and expand. So if you look back at Investor Day, I talked about 2 different customers. And 1 customer was a major tech company. You can't say the name, but here in the Bay Area. And they started with us with Service Cloud back in 2008. 2 years later, they added a little bit of Sales Cloud. 3 years later, some Marketing Cloud. And every year, they have built up their product base with us. And they've -- now a 7-cloud customer. And they've gone from $3 million a year in purchases to over $70 million a year now. And that's not very traditional land and expand, where we just kind of keep moving through different products. What we're seeing now as well though are customers who are just jumping in. And in fact, we had a public sector customer in the last year, had not used any Salesforce products, came in with 6 clouds all at once. And I think what that is showing is a couple of things. First is really showing the power of our complete portfolio that we can offer this many different products, and we can bring them together in a way that's meaningful to our customers. It's also showing digital transformation and companies are really realizing that you go all-in. And it's important to really commit and get in and grow in that business. So I think we're seeing both of these approaches, and they're powerful.

That's right. Absolutely. Great to hear. And entering the year, we all saw this as a challenging hiring environment, shortage of talent. And now with kind of the macro in the U.S. and international, companies have been kind of pulling back a little bit on hiring plans. So how would you describe kind of your plans for hiring? Obviously, if you're growing CRPO 19% organic constant currency, you're going to continue to hire for growth. So what -- how would you kind of classify your plans for hiring kind of heading into the year and more recently?

So it's been fascinating to see how quickly the questions have gone from can you hire enough to should you be hiring? So let's start actually with the hiring environment. And this is probably the most competitive market for talent that I have seen in my entire career. And I think it continues to be. That said, Salesforce hired 20,000 new employees in the last 12 months, 4,000 in Q1 alone. So we've really been able, even in this competitive market, to get the talent we need and to bring them in. And I think that, that -- we've remained a destination employer, which has been terrific. In terms of looking forward, we are still hiring. We have plenty of listings up that you will see. We are asking people to -- on our teams to really prioritize. And I think you'll see us hiring in a more measured way this year. We've asked each team to really step up, look at their budgets, look at their headcount and make sure that they are really tightly prioritizing to make sure that every head that we bring in is absolutely aligned with our goal to customer success and our top strategic initiatives.

Sure. Great to hear. And while we're on the topic of macro and hiring, maybe we could shift to just that, which is we've seen other software companies see a little bit of pause in Europe. It hasn't been significant across the group, but we've seen a little bit of pockets of that. You certainly didn't call that out on the earnings call, and the results don't suggest that you have any of that. What are you seeing in Europe? With the Russia war, is that impacting confidence and customers' willingness to bring more deals into the pipeline, close rates? The slowdown in China, in Asia, risk of recession here in the U.S. What are you seeing? Any impact from any of that?

I think that Marc and Gavin in particular really articulated this well in the earnings call. We -- there is a lot of uncertainty in the world. There is a lot of volatility. But when we look at our pipeline for the remainder of the year, it's strong. And we are not seeing people move away from a need for enterprise software and a need to transform digitally. I think when you look at it where you want to put your money at a time like this, you want to double down with your customers. You want to make sure your value and growth. And you want to make sure that you're focused on productivity. And I think Salesforce answers all of these areas. We're not immune from economic situations. I don't want to sound like we have blinders on in any way. But Salesforce is now a 23-year-old company, which in Silicon Valley terms, makes us very -- I'll just use the term, a mature company. We've gone through a lot of economic cycles. We went through the dot-com crash. We went through the great financial crisis. We went through, at the beginning of the pandemic, which it's hard to almost remember the fact that, that just brought the business world to its knees in those first few quarters. And the one thing that Salesforce has done is we've actually come out stronger from each of these. And I think it's because we focus so much on our customers and helping them navigate, whether it's helping them increase their relationships with their customers, whether it's helping them get more productive during these times. But we've been able to weather these storms. And it gives me a lot of confidence that, even with this uncertainty, that we'll be able to navigate it.

That's great. Great to hear. And maybe we could just go back to the Customer 360 deals, these large deals. You mentioned a customer coming in with 6 clouds, that's remarkable. What is the typical 360 deal look like? Are there certain combinations? Sales plus service? What does the customer typically -- how do they get to these types of deals? Landing those deals is one thing. That's -- I'm sure less common is more customers kind of growing into that, those types of deals where you're running multiple clouds. I guess maybe if you could just describe a little bit the footprint for these types of deals when you see these kinds of big expansion deals for 360.

Well first, I think that it really is a matter of both landing them and expanding. I think we're seeing both of these. In the quarter, customer -- or transactions with 5 or more clouds were up 21% year-on-year. So this really is our future. I don't know that there is one pattern. We have a very complete portfolio. You can walk -- we always say walking the 360. And we go around. Everyone's seeing kind of it looks like a clock face with all of our products on it. We talk about walking the clock and going around and really making sure that we are considering each of our products for our customers' needs. We don't necessarily go to a new customer with a spot solution. We want to really hear what they need and see how we can tailor that to make sure that we're providing something holistic for them. Now in terms of whether there's like a magic formula of Tableau goes with Sales Cloud, there really isn't. And we're seeing a lot of different ways customers are putting things together. One example from Q1 was DoorDash, an incredible company that I would not have survived the pandemic without. My family would not have eaten many nights without that. They have incredible needs, both in terms of seasonality and trying to meet key peak times as well as trying to onboard merchants. And when they came to Salesforce, they came in with 3 clouds initially: Service, very naturally to work on some of these big peak times; but then also Sales Cloud and MuleSoft to streamline, their merchant onboarding. A great example of putting together a number of sales force products. Bose was a great one as well. Bose is going all-in on kind of their customer transformation. And their goal is really to have a very personalized experience for each of their customers. So they have -- I'm forgetting the numbers, it's 5 to 6 different Salesforce products that they're bringing together. Everything from Einstein and predictive analytics, naturally Commerce, Sales, Service. A whole slew of products that they put together to work for them and get them that connection with our customer.

Excellent. Great to hear. And why don't we shift to the core business? Sales Cloud. It's remarkable. This is a $6 billion business last year growing 15%. This quarter, you reported 19 -- sorry, 20% constant currency. So just remarkable growth at that scale. Where are you finding more sales seats? I mean, we think of that as the most mature business, yet it's still growing 20%. It's where Salesforce got started, obviously. So where is the incremental Sales Cloud seat coming from?

Well it's really -- I love talking about Sales Cloud because it has defied expectations to such an incredible degree. And I may have told you this before, but Mark Hawkins, my predecessor as CFO, when he came in, it's -- when he came in, in 2014, his very first question on his very first earnings call was, how long before Sales Cloud slips into single-digit growth? And he said when he answered that, Graham Smith was still there, who was 2 CFOs back. And he leaned over and told Mark that was actually one of the very first questions he got when he joined the company in 2008. So fast forward, 3 CFOs, it was not my first question on an earnings call, but it was the fourth question I ever got in a fireside chat, was how long before Sales Cloud just drifts into the single digits. And it was great because I had the best answer, which has not only has it not done that, but we're continuing to accelerate. And we are just looking at quarter after quarter of our oldest product, a $6 billion product, that is continuing to grow. And I think the reason for this is not the same product that we had 23 years ago. Every single year, we are improving it. We have 3 releases a year that we are focused on making it simply better, more efficient, faster. But we're also adding products that our customers are really looking at. High velocity sales has been a big focus. Revenue Cloud, where we're bringing together CPQ and billings. It's always trying to stay a step ahead of our customers as well as listening to where their needs are. And I think it's just shown the growing relevance of that product. It's one I'm really excited about.

Absolutely. And when I think of the core business, I think of Sales Cloud, I think of Service Cloud, a similar story there. Service Cloud is a $6.5 billion business last year growing at a similar rate, 20% last year. In this quarter, we saw 19% constant currency growth. So very sustained growth there. I guess similar question there. I mean, where -- what's driving that kind of growth for Service Cloud? Is it customers kind of -- they need that connectivity between sales and the service department, and they do these deals together? You've got that sticky installed base to sell into? What's driving that kind of strength in the Service Cloud?

Service Cloud is another. You have $6.5 billion product growing in the high teens. So really excited to see what they're doing. So Service Cloud is a great product because not only is it focused on growing the company's overall revenue, but it's an efficiency and a productivity play. And I think that, that's something that's becoming more and more important to companies, particularly to CFOs when they're making buying decisions. So Service Cloud is really 4 different segments. So you've got kind of your core case management. So that's when information comes in, a customer calls, an agent is able to suddenly pull up a complete 360 view of the customer and get that to the right agent right away. You have field service, where you are using Service Cloud to really coordinate between people in the field, your customers, often contractors, bring them all together. You have your contact center and then have your self-serve or your portals. So that's where a customer can come in and, through artificial intelligence and bots, really solve the issues on their own. Great areas in all of this. One of my favorite examples from Q1 was ADT. So ADT, everyone knows terrific home security provider. They have more than 200,000 cases come up in Q1 that they were able to resolve through Service Cloud. 80% of those, they were able to avoid sending a truck out into the field. Now that's an incredible win. First, you've got a faster resolution for your customer. You have happier customers and you have lower carbon emissions because you haven't sent out 80% of your fleet to do this. So really a great win. And I think it shows the power how we can serve customers both in a way that they're more productive and they're efficient at the same time.

Sure. Absolutely. And maybe we could shift to Commerce Cloud, another bright spot in the quarter. I think this is one of the most competitive markets in software, is e-commerce, yet you have carved out a nice position for Salesforce. So maybe we could just start there. What the strength of the Salesforce Commerce Cloud? What do you think differentiates it from other vendors? And maybe you could just comment on the growth dynamics there as well. Theres' a different revenue recognition model there with GMV. So any color you can provide there on just in terms of the product.

Okay. So a few different things. You had a lot baked in that.

I did. I did.

So let me start with Commerce Cloud. This is a product that we've really developed through our acquisition of Demandware a few years ago. And could not be more delighted we did because it's wound up being such a critical play, particularly during the pandemic. This was how so many caught up businesses were able to continue having a business during the pandemic. So our timing was very good on that. So Commerce Cloud, when I look at what's really unique, it's really the enterprise play. This is really a B2B2C play for enterprise companies that can do this at a very high level, a very sustained level. Great companies that are using this, and everywhere from vineyard vines to probably my favorite, which is See's Candies, across the board. Now you mentioned GMV. I want to be a little careful on that because different companies relate their earnings to GMV differently. A company like Shopify, GMV is directly tied to their revenue, and it's a percentage, and you can look at that. Salesforce is a little bit different. What we do in this area is we enter into contracts with our customers that have a minimum commitment. So one, a minimum GMV commitment. Once they get close to that amount, if they go over, they will pay an overage fee. But what it tends to do is it tends to spur an early renewal. So then you renew, and you've got the continued contract. So it's certainly tied to GMV usage, but it's not that direct tie. I always want to caution people not to make a direct comparison when you're looking at that.

That's why I asked. Thank you for the clarification.

All right. Good question. Good question.

Great. Why don't we shift to the platform? This is, I think, a business that doesn't get a lot of attention. It's a $4.5 billion business, growing 18%, excluding Slack, by our math anyway. I have a similar growth rate in Q1 at 18% is when you reported, or 20% -- 21% organic constant currency. Why don't we just start with what's in there? What is the platform? And what's driving that kind of growth?

Sure. And Brad, before I get to that, because you started off by saying you're looking at platform and you're taking away Slack. Let me just take a second and make sure everyone understands how we group our revenue. So traditionally, if you go to our SEC disclosures and you're looking for subscription revenue. For the last 7, 8 years, we had basically 4 buckets. So we show you revenue by Sales Cloud; Service Cloud; Marketing, which also picks up Commerce; and then platform and other. Now over the years, other has continued to grow. So when we acquired MuleSoft, it went into that bucket. When we acquired Tableau, it went into that bucket. When we acquired Slack, it naturally belonged into that bucket. That was suddenly getting to be a very large, bulky bucket with other kind of eating up the entire area. So we decided to step back and look at how we were doing this disclosure. What we did is we put Slack with other -- excuse me, Slack with platform and other, which is what you referenced. But then we've created a new revenue bucket that we called data, and that is where we have MuleSoft and Tableau. And there's a few reasons for this. First, I think it's just better disclosure. It's giving you more transparency, it's breaking it down further. But MuleSoft and Tableau both have a different revenue recognition. They both have a license function so they're a licensed portion. So unlike kind of these beautiful, smooth subscription models of revenue that you see in our other areas, we've recognized half of basically every contract of the TCV upfront for MuleSoft or Tableau. So what you're going to see is a lot more volatility with both of those. You're going to see kind of this very lumpy area, where if you close a deal the last week of the quarter versus the first week of the next quarter, it's going to have a material difference. So we've grouped those together. So it's nice you can see the other 4 with the smoothness, but you're going to see a lot more volatility in that 1 area. All right. That was a very long-wind up to your question, which was about platform.

No problem. I'm glad.

Okay. So let's go to -- you've taken out that, you've taken out Slack. Back to platform. So platform probably gets the least amount of attention, and yet, I think it's one of our most fundamental areas. And there's a number of different things that are within platform. Really starts with our developer services. So we have developer services. This is where you go for kind of low-code programming. You've got low code, you've got mobile applications and you have Heroku. It's kind of the first group. And that developer services actually had a really -- a very standout Q1. Second group are kind of the general services that we have in this area. So that is kind of the UAT sandboxes, it is storage. And the third is what we call our trusted services. So that is a trio of products. It is our Shield product, our Data Mask and our Privacy Center. And that's really for people who want to build in kind of a higher level of trust and compliance. So that's kind of the first part of the platform. Second part is our ISVs. So these are companies that are built really right on top of Salesforce, nCino and Vlocity before we acquired them. And then also our AppExchange. So kind of think of the App Store, Apple's App Store, but just for Salesforce. And we have over 9,000 apps that are in that area. Final area that makes a platform is myTrailhead, which is actually way -- it's very small, but it's one of my favorite areas. So if you've ever gone to trailhead.com, that's the Salesforce learning center. And it's free of charge. People can learn all sorts of Salesforce skills, general management skills. We use it internally for all of our training, from kind of HR compliance through to financial basics. And a couple of years ago, we made that available to our customers. And they can tailor their own company trainings. And it's fun. These are more gamified. They are -- have little tests in it. And I think that they had just made compliance and training much more fun for our customers. So all of those come together to make up our platform bucket.

That's great. That's great. And when you -- maybe isolating that custom apps platform. You mentioned verticals is really a key area of strength now. Is that the primary growth driver right now in the business? Is it more ISVs coming in, building applications for -- to extend Sales Cloud, Service Cloud, into the different verticals? Different rev rec and requirements in each of those different industries. So how would you classify, I guess, the strength there? Is it more of the verticals that are driving this? Or is it -- yes.

Yes, I think verticals is part of it, but I think it really is open to any industry. And it's great because it's -- companies that are extending the Salesforce ecosystem on their own. And the Salesforce ecosystem, when we talk about sometimes as the Salesforce economy, and that's where we're seeing a lot of the power. Salesforce has about 70,000, 75,000 employees, but we have hundreds of thousands, if not millions, of people who are doing Salesforce work around the globe, and people who are really dependent on the company for their career. And it's great to see them, they're diving in, on whether it is developing apps and getting them into the Salesforce AppExchange, whether it is really just promoting Salesforce as a trailblazer and going forward. And there's a real power that group that I don't think we necessarily highlight enough. I was really struck a few years ago. I was traveling with Marc, and we were back in Minneapolis. We were meeting with a major company, had a meeting with a CEO, CFO and their COO. And we're walking out. And this group of probably a dozen people all wearing Salesforce Trailblazer hoodies comes kind of running up. And the CEO looks at Marc, he's like, "Is this your entourage? Like did you fly in all of these people?" And Marc said, "These aren't my employees. These are yours." And these were people working at that company who worked on Salesforce every day who felt this loyalty to Salesforce and heard we were going to be there and showed up in force with their hoodies on to show what Salesforce meant to them. And I think when you can create that type of loyalty in employees at your customers, that goes back to the attrition we're talking about. That goes back to CRPO. That goes back to really the strength of Salesforce and our ability to go forward.

Sure. Sure. Absolutely. And why don't we shift to Slack? It's been less than a year since the acquisition closed. You've seen this nice history of [ system sales ] really has...

It's hard to believe it's been less than a year, yes. End of July. I think it was July 21st...

Yes. Yes. And when we think about the company, you can see this history, where about a year after the acquisition, Demandware, ExactTarget, Tableau, MuleSoft, you see this nice acceleration in the growth rate in those businesses. As you gain momentum, those products become integrated with the platform. You really start to see some cross-selling strength. What is the playbook, I guess, is the question for bringing these acquisitions in? It's no easy task to integrate a big company onto a big platform like Salesforce. I know Parker Harris has built a platform that makes it more extensible that way. But I guess, high level, what is the playbook such that you've seen this kind of success historically with these acquisitions? On integrating the technology, the go-to-market, those joint use cases, Customer 360, there's a lot in there. So would love to get your perspective on that.

So it's interesting that you say we're coming up on a year. It feels a little bit longer with Slack. And that's because we had a very -- thanks to the Department of Justice, we had very long time to get ready and prepared for Slack. And that actually, in some ways, turned out to be an advantage. It gave us time to really think what the -- think through what the product road map would be. Slack had public APIs, so we were able to look at those ahead of time. It allowed us to really give a lot of thought to how we would sell after the acquisition closed. And we had some real advantages. Now we do have a playbook for M&A. And we've had some experience with M&A over years. We've acquired about 80 companies since going public and now 5 public companies. But one thing that we've learned is, as much as you refine your playbook, every single acquisition is going to be different. And 2 of the things that were different with Slack. One was the extended time period, which actually wound up, I think, ultimately working in our advantage. Another was the sales team which had largely come from Salesforce. So I remember years ago being very disappointed when Bob Frati, one of our long-time salespeople and just great person, left to go to this upstart company called Slack. Well, it worked out, and I felt a lot better about it when we got him back as the leader of the Slack enterprise team. He was able to snap right back into Salesforce. And that's -- I don't know whether that is just good luck or very well thought-out strategic planning, but it was great, and it's made this unique. In terms of Slack and their performance. They outperformed our revenue expectations for Q1. I believe it was $348 million in revenue versus our guide of $330 million. And one of the things that we look at, at Slack is we look at the number of customers who are paying more than $100,000. That's how we kind of defined enterprise for Slack. In this quarter, they were up 45% over a year ago. And what's even more powerful. This is their fourth, actually, it's -- I don't know if it's fourth or fifth quarter of above-40% growth in that area. So we really like what we're seeing in kind of this enterprise expansion. An example of one of the areas we're seeing that is we had -- they had a very nice renewal with a company called Gusto this quarter. I don't know if you know Gusto, but they do a lot of kind of HR-related software. So it's payroll. They help smaller companies manage 401(k), that type of thing. They have gone just wall-to-wall with Slack as their communication platform. And it's not just internal, but they have over 100 channels with customers and vendors to communicate Slack. They had developed apps through Slack. They brought in just about everything. So they renewed this quarter, which I thought was just great opportunity.

That's great. I mean, you can see several natural use cases with Slack within the Salesforce stack. Sales Cloud, you just closed a deal. Let's collaborate on Slack. Everybody's dislocated, working hybrid. Let's collaborate and pull together a sales agreement. Marketing Cloud, let's get together and pull together a campaign. Let's figure out what might be going wrong with the campaign in Slack. Are there certain common use cases that you're starting to see crop up? I mean, 45% growth in that greater than $100,000 cohort, that's an acceleration from low 30s. So obviously, you're seeing some early success there. Would you attribute that to the combination of Salesforce plus Slack at this point, and you're seeing those use cases? Or is that more to come?

Well, there's a few things. I think my favorite use case is the fact that we bought Slack on Slack. So we negotiated the entire deal for Slack through Slack. We closed the deal through Slack. We brought in our lawyers and our outside law firms into channels on Slack. Our bankers were participating on Slack. If we can do one of the largest software company acquisitions in the world all through Slack, I think that's a pretty fantastic use case. Also, I've got to say, as much as I love the legal industry, and I'm a lawyer by training, we're not usually cutting edge on adopting new technology. We had to kind of pull people in, that they were going to do this entire deal on Slack. And our legal team actually wound up being one of the most devoted users of Slack from that. They thought they were more efficient, they were more product. And one thing that was interesting to me that our lead M&A lawyer said. She said she thought she developed better relationships with parties through Slack. There is something that's very personalized that she said meant a lot to her. And that's always stuck with me. Now in terms of other products, Slack is a fantastic stand-alone product. But I do think, you're right, it's the power of combining it with Salesforce. We have 5 Slack-first products that are now GA. By the end of the summer, we will have more than a dozen. That's where the real power is going to come in. And hopefully, that's where we see the acceleration.

Great. That's great to hear. I think we have time for one more. So why don't we just end with just one on the executive team with the recent appointment of Bret Taylor as Co-CEO. How is Marc? And how are Marc and Bret splitting responsibilities? Obviously, Marc is still very much involved. We heard him on the earnings call.

He's very much involved.

So yes, I would just love to hear your thoughts on how the 2 are sharing responsibilities.

So Marc is still very much involved, and I can show you my inbox to prove it. I meet with him daily. He does love to e-mail and text. That has gone incredibly well. In fact, it's funny to have you say it's recent because it's felt very natural. So Marc and Bret, I've worked with both of them. Marc for almost 9 years now, Bret for 5. This was a very natural step in their relationship. In fact, I have to say it did not feel terribly different from one day to another once they entered into this Co-CEO relationship because they evolved so naturally. What I particularly love about it is, it's hard -- the higher you get up in the company, I think it's harder to find people who will genuinely challenge you and can really challenge your ideas, try to get you to think on a higher level, do things. They do that for each other really beautifully. And I think that the combination of the 2 of them is incredibly powerful and has been an incredible boon to the company. I knew Marc and Bret were both very excited about the announcement of the new relationship. I always said that's great, but I was more excited because I think it's a terrific step forward for the company.

That's great to hear. Amy, thank you so much for joining us.

Great to be here.

I learned a lot. Really appreciate it. Thanks, everybody, for joining.

Thank you.