Salesforce.com, Inc. (CRM) Management Presents at 2018 Wells Fargo Tech Summit (Transcript)

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About: Salesforce.com, Inc. (CRM)
by: SA Transcripts

Salesforce.com, Inc. (NYSE:CRM) 2018 Wells Fargo Tech Summit Conference December 5, 2018 9:45 AM ET

Executives

Mark Hawkins - CFO

Analysts

Philip Winslow - Wells Fargo

Unidentified Company Representative

Please welcome Chief Financial Officer of Salesforce.com, Mark Hawkins; and Wells Fargo’s software analyst, Phil Winslow.

Philip Winslow

Alright, good morning. Good morning. Okay, alright, welcome to day two. Thank you everyone for coming out and so I hope everybody had enough of your last night at the bar, so play safe. Thanks for coming out and in particular thank you to Mark Hawkins, Chief Financial Officer of Salesforce. Mark, I know it’s a super busy time of the year, so I appreciate it always you can make it out.

Mark Hawkins

Well, thank you. It’s great to be here, and that's got to be the best music intro today, the best of conference I've been to. So, best thing, the music was good.

Philip Winslow

Thank you, thank you. So before we get started here, I do have a quick Safe Harbor to read. I'm not going to do that well as Zilli does, but I'm going to give a shot. So just as a quick Safe Harbor. There maybe forward-looking statements made that are subject to risk and uncertainties, so please remember to make decisions based on what is available today and checkout with the SEC website on the filings and stuff. And so -- and by the way speaking of Zilli I just found out he is celebrating his 8th year anniversary at Salesforce.com tomorrow.

I can’t believe, it’s been five for you, so it’s pretty incredible.

Question-and-Answer Session

Q - Philip Winslow

So just getting things kick-off here, focusing on the guidance that you've provided. Obviously you had a phenomenal Q3. You gave guidance for next year, updated the 2022 guidance, $21 billion to $23 billion. I mean just maybe a high level -- just sort of levels that things here with the sort of this next milestone in mind, what are the product drivers to get you to that trajectory, how are you thinking about the growth there?

Mark Hawkins

Sure. Thank you, Phil. And again thank you for the invitation to the conference. I would say a couple of things here. One is we're -- the $21 billion to $23 billion is something that we put out. We reaffirmed it at our earnings call and we look at that and we stare at that in comparison to a $145 billion TAM during the summer period of time with the existing clouds that we have. So our capabilities with CRM are there to take us to that level. I get particularly excited when I look at what's happening in our Marketing Cloud and our platform and our service and the sales kind of coming together. Our Commerce Cloud is going well. So we're hitting on all cylinders right now.

I think the thing that really lifts us to that level is really the customer. The customer is really asking us for a solution to the -- how to connect with the customer in a new way. That's certainly really important in age of the digital transformation and we find CEOs are not looking for like five partners, they're looking for eight partner. They're looking for somebody that can help them transform very, very rapidly and we're in a well -- really good position with this end-to-end coverage and I think that's really what's going to lift us up the most.

Philip Winslow

Yes, the power of the front office suite.

Mark Hawkins

Yes, the front office suite, really. I mean that’s what’s ….

Philip Winslow

I mean really we guys put that out there as an example but it is so true, it’s just sort of like what we saw in the 90s with the back office and the ERP systems. I mean I kind of think as a general ledger obviously that was sort of a course into the record, the back office, the customer data base, the system record, the GL of the front office and that's what -- that Salesforce like the most.

Mark Hawkins

That's exactly right and I think MuleSoft is helping us accelerate towards that $21 billion to $23 billion in a sense that it’s helping us and our customers grow faster in terms of the digital transformation increasing the clock speed as we’d like to say. So that is another thing that will lift as we go to help them go to future.

Philip Winslow

And then thinking about just the idea so it’s ongoing power and potential of the front office suite. At Dreamforce one of the things you guys talked about was that [62%] of customers on a single cloud but 92% of revenues were derived from multi-cloud users. You are talking about 10x spend over single cloud. So as you think about sort of progression of sort of selling the suite in multi-cloud users, kind of help us through that journey and how you are sort of thinking about the evolution of that business, some of these metrics?

Mark Hawkins

One of the things I think about it Phil is that we have SMB customers, we have mid-market, we have enterprise customers and each of them have different requirements. So there’s a section of customers that have a smaller need for sure but one of the things that we notice is the higher end you go, the higher up to the enterprise, the mid-market, the GB area, you have people that really, really want a complete front office solution as you and I described. So we see that the real power of the additional selling into that account is a great source of growth for the future. And I think you should just expect that it's kind of a natural progression. We didn't put a timeframe on it but we're watching more and more customers come in, especially at the high end enterprise level, you can see them doing a complete ceiling, in fact, for our offerings at times because they want the entire offering at the high enterprise level and I think it gradients all the way down to the ESMB level. But I think it's a huge opportunity, even that ratio will naturally progress over time.

Philip Winslow

I mean obviously the Salesforce has been building out its cloud portfolio, multiple cloud, and as you mentioned MuleSoft, there being the most recent big deal but also you have a pretty substantial partner ecosystem here.

Mark Hawkins

Yes, we do.

Philip Winslow

And you have a platform approach or applied platform strategy. What are you just focusing on that, just walk us through sort of how you see the evolution of that partner ecosystem, particularly as we think about different verticals, different clouds, sort of how you’re searching the partners, I guess the opportunity?

Mark Hawkins

Sure, I mean one of the things we talk about is the amount of new business that we do is always -- and we have a huge percentage of our partners and our ecosystem who are involved in driving new business. And we've talked about that ratio in fact north of 60% of new business deals they are involved and we've worked with them for decades to cultivate one of the best ecosystems in the world and they've come to join us because they can see our offering, how competitive it is and how the market share we’re taking and they want to work with us.

So when we work with them, you stand back and you look, it becomes particularly critical in certain verticals where they offer additive things to what we offer and together we go meet the solution and the customer. But one of the things I like is, that is really helping us go deeper with the verticals but it's also helping us just go deeper with accounts in general, very, very powerful capability. One of the things I would say with the ecosystem, not only the size but also our AppExchange ISVs, that's really hard to replicate, the biggest business-to-business AppExchange in the world. So we have both sides of it, SI Partners and the ISVs that are helping us in this ecosystem, isn’t awful.

Philip Winslow

Got it. Well, so you talked about the multi-clouds, you’re talking about the partner ecosystem. I want to talk sort of about the add-ons, you know I am a fan.

Mark Hawkins

I know.

Philip Winslow

I really like underneath the cloud because that was one of the things that I jumped out of me on the Analyst Day, which -- just the numbers, some of these behind was -- some of these were not big acquisitions, some of which are also organic development. But your CPQ, Analytics, DMP, Field Service, they're all talked about, they showed just some amazing growth and they’ve just big dollar numbers. So how do you think about sort of the -- call it the multi-cloud level down to these add-ons since opportunity, what of these would you really highlight and what's been driving growth and what are you still excited -- most excited about?

Mark Hawkins

Yes, I think you’ve called it out well. I think the add-ons, we always think about our core cloud, let’s say, take Service Cloud for example and then you add-on additional capability with Field Service for example. That's been a tremendous growth driver. And we wanted to reveal some of these different attributes just so you can see how many different seeds we're planting and how many of those seeds are really taking root and growing very, very rapidly. So I think you know Field Service is a great example, where it's helping to enhance our core service capability.

If you look, let’s say, at Sales Cloud, we've been super happy with CPQ as a natural selling motion and natural extension of our core Sales Cloud and literally that we showed the growth rate, I think people were surprised about that. But if you look at, in our Marketing Cloud you can take a look at some of things that we're doing with DMP. We're very excited about Datorama and the add-on capability there. You can look at just across all of our clouds and find something that is what we call a [Plus One] and that's a strategy we will continue to do because we talk to customers and constantly are being guided by what else do you need, what else will help you be successful, what else will help you grow faster, what else will help you realize your front office solution and make you even more productive to grow and take your service to customer and build your brand? And we just keep snapping those. And so, you should keep expecting that, both through organic add-ons and even small tuck-ins that we've done for M&A.

Philip Winslow

I do want to go on and focus on Pardot because that was actually a -- that was one of the dollar figure and a growth rate that frankly strike me.

Mark Hawkins

Yes.

Philip Winslow

And obviously there has been some consolidation in that space. You’ve obviously bought ExactTarget and Pardot, you've done a lots over the years in terms of progressing it, but then we just saw Adobe buy Marketo, obviously a couple of -- a few years ago, your Oracle buyers, your sponsors, Eloqua, maybe kind of walk us through what you're seeing sort of in the Marketing Cloud space or competition, how you think you're positioned?

Mark Hawkins

I like the Marketing Cloud, it's a fast growing market, a lot of needs, it's still really kind of coming together. Right now it's still somewhat fractionalized in that respect. I -- Adobe is in there, we're in there, I think Adobe is a great company. I've a ton of respect for them. I think this is a great market and I think we both have done well in that. You've seen us growing north of 30% for a long time. We are -- clearly the market is not growing at that rate. We went from what number 6, a closer number 2, and we’re growing north of 30%. So you can see what our intentions are, to be the leader in every market that we are in CRM and that's what you would expect from us. We -- I just have a ton of respect for Adobe. We compete in certain areas and our other areas that we really don’t, as far as some of the assets that they’ve picked up, I certainly can understand what they're doing. We compete really well with Pardot. I think the -- it was little bit eye popping when people saw Pardot and how fast it's growing. And if you put a valuation on that, relative to what you've seen transpire in the marketplace recently, that's pretty good I think. But I think the customers are liking that product. We feel really strong in our position and we look forward to go in future.

I think the market is big enough that you can have a few really strong companies and I think Adobe is the one that we see primarily and the rest is -- there’s a lot of other motions but I think those are two big ones in Marketing Cloud.

Philip Winslow

Let's keep going sort of cloud-by-cloud. So we talked about Marketing Cloud. Let's talk about Sales Cloud.

Mark Hawkins

Yes.

Philip Winslow

The core, because that's one way where I think the growth there just be because that has the original product -- because it's original product so the growth that you continue to see there and how do you think about that because you got sort of the core Sales Cloud but you also have these add-ons like you mentioned your CPQ, SteelBrick I think was -- probably it's novel deal, we feel pretty good, that’s a great deal.

Mark Hawkins

Yes.

Philip Winslow

What are you seeing in Sales Cloud, how you're keeping that growth rate up and how you think about that?

Mark Hawkins

I think what's happening in Sales Cloud as it is exciting to us is to see the world standard in terms of SFA if you will and Plus continue to grow double-digit, doing really well, we have a core capability that's been enhanced by AI, it's been enhanced by Lightning, it's been enhanced by Plus ones like SteelBrick and other functionalities. So that continues to be just kind of the goal standard and we feel really good about that product. I was always amazed of the fact that the history of how big people anticipated that market to be and how they watch that market continuing to expand just in Sales Cloud alone, it's really quite phenomenal. So you should expect more innovation there. You should expect continued kind of the Plus One strategy and that's going to be a good product for us for a long, long time.

Philip Winslow

Yes, you’ve pointed that because I was actually looking back to your model, I expected that. I had a bunch of columns and I was like gosh 10 years ago, this I think was 1.3 billion and now it is like 13 billion, I was like holly god, it's actually pretty impressive. Maybe broader if we think of Sales Cloud within that, you pointed to sort of how people underestimated, sort of just the elevation -- the expansion of that.

Mark Hawkins

And I think especially with AI and the criticality of data and how to make people more productive, I mean it's only getting more important and I just think that the innovation possibilities are endless there and we just need to continue to build on that. But that is absolutely a great product with lots of innovation plans.

Philip Winslow

Got it. So, let’s keep going down the clouds here, so Service Cloud.

Mark Hawkins

Yes.

Philip Winslow

Now there’s just sort of kind of runaway success for you guys. I remember when it launched, you hit for acquisition and you re-platformed it, you started acknowledged base and then move it obviously way beyond there to be number one in service, number one in the cloud. And so the question I get is that hey look that's had phenomenal growth, it’s gotten to a big number but continues to grow faster. How do you think about Service Cloud especially kind of relative to Sales Cloud, because that's a question I get a lot?

Mark Hawkins

Yes, sure. Well one of the things that's interesting about Service Cloud, we're now -- when you look at this we grew 24% last quarter, we're growing 2x the market, we’re strongly number one. And it's a classic example of what I talk a lot about competitive separation when you add the next three competitors together and your market share eclipses that, in my experience in fact that's a good outcome. We are obviously -- the markets -- with the numbers that we're posting we're taking even more share. And part of that is just the fact that it's a really, really innovative product that scales as big an organization as you need. We're also adding lots of functionality. This was a great case where you know bots and AI and tremendous -- I mean the application for Service Cloud, you think just in the public sector, it's kind of just it's up to your imagination how far you can go with this.

So I think it's a tremendously competitive product, we're doing really well on that and that one you should expect us to continue to staying along. But compared to the Sales Cloud, We were talking recently that as only five quarters ago that sales -- when you think about Sales Cloud and Service Cloud, Service Cloud is coming into the class of a Sales Cloud so rapidly and at the end of the day when we were -- when Sales Cloud was at this rate, it was growing 50% slower than Service Cloud. So think about that. I mean it just shows you how powerful this particular product is and the TAM is even bigger substantially than Sales Cloud. So I think you should expect this to be a very important part of our future.

Philip Winslow

Great.

Mark Hawkins


And competing really well.

Philip Winslow

Great. And then, okay, let's talk about Commerce Cloud, there’s also somewhat recent addition with the demand. So if we look at sort of obviously Marketing Cloud and Commerce Cloud together, but if you get back into it, I mean it looks like Commerce Cloud has had phenomenal growth since you bought them. And then one of the questions I get is when I think about sort of demand historically, it was really strong in the retail vertical and part of -- that was part of your strategy to get deeper in that vertical. But how sort of demand in the Commerce Cloud has evolved since then and what's driving that growth that we're seeing?

Mark Hawkins

Sure. Yes, I mean the one thing we really are thankful for is the ability to get good assets, assets that are just unique and kind of standard in the world and I think obviously we had a lot of choices when we bought Demandware and we look at that and we're very pleased with what we do on the B2C side, growing north of 40% GMV and then we added CloudCraze to do the B2B side. And so now we’ve really enhanced the share of capability of what we can go address for the customer. So that has gone really well. You're absolutely right, you can help a retailer really go from in-store experience-only way to e-commerce in a very effective way, the B2B side enhances the opportunity and that's just propelling growth.

So that's a M&A that was absolutely penciling out very, very nicely to us, similar to ExactTarget and some of the other big ones.

Philip Winslow

I remember one another example on the call backwards that was given to me but parking spaces I remember in the UK.

Mark Hawkins

Yes. Exactly.

Philip Winslow

So the non-typical applications of the commerce platform, so it's like -- it is not just retail.

Mark Hawkins

Yes. The B2B side of it is tremendous and the opportunity that it provides is tremendous and we see that interaction between Commerce Cloud and Marketing Cloud and how that -- again is back to the CEO wants a solution, they want to partner and they want to go now. Because every board, every CEO that I've ever met, cares about growth, plan and service and that this is helping them on the Commerce Cloud side and it is for us.

Philip Winslow

Okay, last but not least. Obviously this was -- probably you launched the Customer 360 and wondering if you talk about the evolution and need for this offering but also how does MuleSoft fit in with this vision of Customer 360?

Mark Hawkins

For sure, I think for Customer 360, we literally talked about it at Dreamforce. The capability to take our Sales Cloud information, our Service Cloud information and Marketing and Commerce Cloud information and make sure they're all placed together in a really effective and customer-friendly way so you can do even more effective campaigns, even more effective demand generation, even more effective service and such. So that's happening and it's exciting because it takes that solution that the customer want and lets them use their own data within CRM in even more powerful way.

MuleSoft, now we are talking about everything that’s within Salesforce. MuleSoft allows us and allows our customers to integrate data from lots of other desperate sources and to bring it into their overall solution and make them grow even faster, so the cool thing about MuleSoft is that it's literally unlocking data, it could be in the cloud, it could be [PRAM], it could be from the whole variety of different sources outside of CRM and helping the customer move forward very, very rapidly in this world of digital transformation. So the last thing I would say on that is with 360 -- Customer 360 and with MuleSoft, if data was important in the past, we all know data is more important going forward with AI, we just know that so.

Philip Winslow

Actually, so exactly, that was my next question, so your AI machine learning, obviously you guys have launched your Einstein and you are into play there. What are you hearing from customers, how do you think Einstein evolve, what is the feedback there, how do you kind of see the roadmap going forward for the role Einstein plays in the suite because we've talked about cloud-to-cloud, we are talking about the add-ons, how is Einstein playing into this?

Mark Hawkins

So we -- I can remember we talked -- when we first launched Einstein we were just at the very beginning of the beginning, still this is an early runway for AI which is going to be a long, long runway. But the nice thing about AI right now is that you can break it down into use cases that everybody gets. Everybody gets why this would be more helpful than our pre-AI kind of capability. We now have more than 4 billion predictions per day being utilized with Einstein, 4 billion per day, growing quite rapidly. We took the approach to make every cloud that we have Phil smarter and literally everything we offer to you is going to have degrees of Einstein and every time we give a release if you will, there will be more capability to make it even more AI-oriented. And so that's one way to help our customers to be more successful and to push that out to every cloud we have. But the second way that we're looking at and that makes our offering better from a value preposition standpoint -- the second way we're doing it Phil is there are SKUs that are so powerful with AI that is an incremental SKU with incremental revenue capability in and of itself separate from just having more competitive clouds. So that's the strategy that we're doing but the most important is to push it out to everybody and that's happening. We provide more AI and CRM than anybody in the world so.

Philip Winslow

And how much -- I’m talking about just the ability to see across multiple clouds, different parts of the customer journey, the Customer 360 the fact that, that you have that data, you have the integration, you have sort of the single pen and glass for the customer. How much of that is differentiated when you apply then Einstein to all these different processes, to the lifecycle versus competitors that might have AI capabilities but just for one component?

Mark Hawkins

I think it's tremendously important. When you can see the 360 degree view of your customer, it gives you a chance to solve problems that cannot be solved with the point solution. My thesis is I think there is a lot of pressure on point solutions right now, but even more so going forward because again talk to any CEO that you're dealing with from an investment standpoint, ask them if they want five or six partners or one to transform their front office and they clearly want one. And two, is to have the sheer scale and the ability to invest in AI, I mean to just have the sheer firepower to do that, it takes a substantial amount of money and if you're a point solution trying to provide one part of the solution I think the scale is going to be challenging as well. So I see the market going very much forward, give me a front office solution that's going to help me in its entirety and I think the point solutions will be under a lot of pressure.

Philip Winslow

Alright. So we talked a lot about demand and sort of the top-line and so it looks like about margin and the balance that you guys talked about, growth plus margin expansion and so obviously in the context so that 21 billion to 23 billion guidance that you gave for next year. How do you think about sort of that balance of growth and margin here?

Mark Hawkins

Yes, well I talk about three things in priority; order growth is number one to us for a growth company. You should expect that the most from us. Number two, really you should also expect margin expansion. And number three is cash flow. These are the three things that we know are important to our investors and we're maniacally focused on delivering that in that order. But it starts with the customer making them successful and then having these financials follow. I think when you think about margin expansion we have been putting up a level of durable growth at this size of scale that is somewhat unprecedented to be the fourth largest independent software company in the world growing at a rate we just guided next year in the 21% percent range of top-line growth.

And at that level we're still expanding our margins. But it's in the level that you would expect with a durable growth we've been delivering in the last several years and we try to keep that combination of growth and margin in sync but we'll deliver in both and in February will be the sixth year in a row of guided organic operating margin expansion while we've been taking share, while we've been growing the company very, very rapidly.

Philip Winslow

I think of track record.

Mark Hawkins

Kind of that.

Philip Winslow

Just thinking about that.

Mark Hawkins

I’m sure.

Philip Winslow

Well I've got a bunch of more questions here. But I figured out, if I just pause for a couple minutes in the audience to see if there are any questions for Mark. Raise your hand, so we could bring a microphone over. Otherwise, I'll just keep going.

Mark Hawkins

It was a late night bar.

Philip Winslow

So I’ll keep going and I'll give people a moment to think some more. But let's talk about probably on the competitive side too. Because we've seen -- actually this question I asked on the call what I think was north of 15 billion in M&A this year and sort of try to build out of cloud. But the thing that I've kind of wondered is sort of like hey with all these M&As still sort of nobody has a suite, but sort of have they bossed each other out of actually having a suite, because different people bought different parts of the suite. But now we are also seeing a data sharing initiative between some of these. How do you think internally from a competitive perspective of sort of having a complete suite in integration single data model versus kind of a stuck together kind of partnership and data sharing across competitors?

Mark Hawkins

Well I just look at -- without -- I just kind of look at the market, my experience with that, I think a lot of sharing ideas are interesting. I have to see examples of where there's been real traction out in the marketplace. Well you always have to think about that in terms of both the possibility that could always possibly be true. But then how many times in the market does that really happen. And I think what I see tend to see is people actually needing to get something actually integrated in their own offering because it’s so complicated and to try to ensure that you have integration even in your own company right alone across lots of different companies. So I think that's just something that I think about it. I think the pathway to the customer, the pathway to provide the best solution is to actually have that solution within your own domain and architect and can continue to evolve that and that’s just my point of view but the market ….

Philip Winslow

It’s going to be fascinating to see other one day the data partnership because through [GPR] and some data products that will be fascinating.

Mark Hawkins

That’s gets a little…

Philip Winslow

Yes, I was going to say, I was like I feel that we’re trying to figure that out.

Mark Hawkins

I think it really is and I think we're excited about with MuleSoft what we can do with data, we're excited with the Customer 360 what we can do, we're excited about having actually the end-to-end, we're the only one in the marketplace that has the end-to-end solution and we're continuing to innovate on that.

Philip Winslow

Let's talk about international expansion because I know I mean you guys are doing very well internationally but I know there has been on the top of the list for several years and walk us through just your strategy for international expansion, what do you think the opportunity is there?

Mark Hawkins

The opportunity is big. The one thing I would tell you guys is that the first time I looked at our numbers years gone by, we have about 30% international and 70% Americas, so I was like wow what an opportunity. And you look at that ratio and compare to a lot of ratios that I've seen in tech companies and you think like there's a huge opportunity to change that ratio. What's interesting is how do you change that ratio, what happens with the lot of companies and you track and you see it, is that Americas slows down for those companies? And therefore the ratio when international grows strong, the way that may starts to shift but what happens when your Americas just is lighted up and going north of 25% growth rate, it is hard to change that ratio but then you have to ask yourself why is that. The reason that is, is the TAM that we are serving is so big that we have the ability to grow at north of 25% in north as you look -- when you look at this last quarter and you look at in the different GOs you just see how big the TAM is and I think that's the exciting part and it kind of anchors us back internationally to the opportunity. We are investing heavily internationally. We are putting disproportionate number of heads internationally. We are investing in infrastructure internationally. And we're investing in Americas too but in a slightly disproportionate way internationally. We tend to stay focused and think about like to top 9 or 10 countries in the world, it's not to say we don’t sell in other places but we'd stay very, very focused and that's allowed us to be the fastest to 5 billion in the world to 10 billion and with our guidance out there we would be fastest as to 20 billion as well in the enterprise software market. So we feel like that focus strategy is paid-off so it's a focused international expansion with disproportionate investment and we're seeing the return when you look at. And you look at Europe today, we posted last quarter at 31% growth. I think that's an example of they are ready, they want digital transformation. Asia wants digital transformation so we need to keep on it and stay focused, that’s what I would say.

Philip Winslow

Go it. I have a couple more questions but I'll pause here and see if there is question in the audience. But the kind of seasonality seems like bringing back more near-term, you guys have talked about this for multiple years sort of increasing seasonality of the business. How you are thinking about that now that we are in Q4 here, maybe kind of outline sort of how you're thinking about that seasonally Q4 and then how you are kind of thinking about that longer term?

Mark Hawkins

So our seasonality Q4 has always been our biggest quarter of new book of business quarter for renewals for the history of the company. We're now 20 years -- almost 20 years old and so that seasonality has always been really pushed to Q4 and what we see and what we see is the way people do commerce because of people getting broader and broader relationships and they tend to want to kind of consolidate some of those relationships and the Q4 gets slightly bigger. What we've talked about at investor days over time is some compounding the seasonality that we have published and covered in investor days. And that's just kind of a natural phenomenon of when people want to actually consummate contracts and that type of thing.

So I think that's a phenomena that we've tried to articulate to you just so that you could see it and comprehend it and it's mathematically it's amazingly symmetrical and we showed some of these in the charts, at Dreamforce and people were like wow, it's like you could really see how this shapes in a very -- in almost consistent way.

Not to say there’s not aberrations or I mean like over the long, long pattern is pretty clear. So you should expect you know there's nothing that's really changed about our seasonality from what we've talked about at Dreamforces, it’s a big quarter hence we're super busy, hence why I'm not going skiing as much as I'd like to with all you, I do love to ski, been Colorado for 12 years so it's torture to come here and not ski. We're always -- it's always about execution and getting after it. We really are honored to do that and help our customers so we're up to.

Philip Winslow

One more time, if you want to ask last questions, if there’s any last ones in the audience. Yes, front?

Unidentified Analyst

Thanks for letting me ask the question. I'm just curious if you can talk a little bit about some of the initiatives you have for Einstein over the next year or two and how you're going to continue to fold that into your products?

Mark Hawkins

For sure and glad to do so. So we -- I mean Einstein is obviously a very heavy area of investment for us right now and we're always constantly making tradeoffs to make sure that we're putting enough dollars in there. The other thing I would say too for Einstein is in kind of the same way I was describing how we're trying to make every cloud smarter every and I can’t obviously preannounce functionality or capability but if you take the ideas of what we're beginning to show like in Dreamforce, like Einstein Voice is a great example is really, really powerful. When Einstein is talking to Siri and you're literally I don't know if anybody is an investor or people who track our company, I would say you if you had one like 15 to 20 minutes slot to look in Dreamforce and look at one of our employees who showed what was happening with the voice interaction with Einstein that will really peak your imagination to what's happening and it will also show you how much of the use cases, how can technology there's like the Hype Cycle. My personal investing I look for the use cycle and take a look at that and look at what's happening. That's the kind of area that we're investing in and that you should expect more. But our strategy is to take the ideas of Einstein for each of the different applications in the front office and service and e-commerce and sales and the entire capability and continue to go to the future including with voice would be an example. So that I can't really say more or that would be a problem, but I would say to you that particular video I think really gets to the spirit of what you're interested in. Okay?

Philip Winslow

Last question from me, the last couple of minutes we have. Obviously you guys, there’s a long-term planning but also you always have this near-term milestone, there’s long-term plan. So where you going to think forward as you are a C-level executive what are the things that Salesforce call it look out 15 months or a year in a quarter here. But do you feel you really need a knock down as you kind of think about the long-term strategy?

Mark Hawkins

Sure. I appreciate you are asking that. You talked to long-time, we come back to the 15 months. I -- one of the first one of the first things Marc and the Board asked me when I first started the Salesforce and rapidly during my 5th year is that’s really take a long range find a whole another level for the company and we put that in there for top-line, we put that in there for bottom-line, we put that in there for cash flow, we put that in there for really scaling the company up to where we need to be and how they've been personally experienced going through $5 billion, $10 billion, $20 billion, $40 billion, $50 billion in top-line ….

We began to see what it takes to really plan big important milestones as you go forward that's along side. We have a plan we've been executing and we updated at Dreamforce the plan the progress we've made with margin, profit, cash flow, market share and such. But then you come back and say any plan like that has to break exactly as Phil talked about you have to break it down into years of milestones not just financially but also imagine long range plan so imagine a service delivery team, imagine finance, imagine marketing every division the company has to have complementary plan where they're thinking of milestones to break that down.

So we do think in the terms that you're thinking. So then if you bring it way back down to the near term I think our huge focus starts with driving incredible customer success because we know that is a true north of everything that's going to get us to where we're trying to get to.

The most important milestone is to go and attracting is to go and knock out the guidance that we've given you and make sure that we're really positioned ourselves for FY22. Obviously we just reconfirmed that couple of weeks ago but just execution I think we have a really good plan, we're sitting into position we are in a number one position in the fastest part of enterprise software market with the big TAM in front of us I think the most important thing in my mind is to break it down in the execution right now and really do a nice job with all the products. I'm very personally excited about Customer 360. It's unmatched in the marketplace and I think that's -- it is going to be a really need milestone for us and I also to gentlemen's question on Einstein I think that's going to really be -- really helpful to us going forward. That's what I would say a couple -- from my standpoint milestones.

Philip Winslow

We've taken 15 years to get it through this quarter. So thank you Mark, thank you so much. Appreciate yes.