Salesforce.Com Inc Q3 2022 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : Congratulations to Bret on becoming Co-CEO. One for the Co-CEOs and one for the CFO: When you look at the operating model of the company, it is working quite well. You're pretty close to 20% organic growth rate, give or take. Your margins are pretty close to 20%. In fact, you absorbed Slack and did margins that were on par with your best margins before, so everything is going well. Do you feel the need to make any acquisitions? Or even if you do, do you feel like you can contain all this with the current margin structure? And one for Amy. When you look at the tremendous operating efficiencies you've been able to experience in a very short period of time, does that increase your confidence in the longer-term outlook granted that you don't have a specific margin target for the longer term? How should we think about the sustainability of the improvement of margins in the longer term as we watch the incredible success you've had in a very short span of time? Marc R. Benioff - salesforce.com, inc. - Co-Founder, Chairman & Co-CEO Well, I think you're right, Kash. We're doing a very good job of absorbing Slack and integrating it deeply into the company. Not only into the distribution organization with Gavin and not just with its financial characteristics with Amy, but you can see the tremendous vision and especially REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 30, 2021 / 10:00PM, CRM.N - Q3 2022 Salesforce.Com Inc Earnings Call if you watched the Dreamforce keynote that Bret brought to Slack and Salesforce together with Slack, first. And I'd love for him to talk about that because I think, when we get to Dreamforce New York City, which is going to happen on December 8 at Javits Center -- and I hope all of you will join us there. We'll have 2,000 customers there with us and we'll be broadcasting that all over the world as well. Well, I think that you'll see that this has fundamentally changed the tone and tempo and future of Salesforce, that we're really a very different kind of company because of this amazing acquisition. That said, this is a large acquisition. It is taking a lot of work and time from the management team to absorb it. And it still will take several more quarters before we can tell you that we're really running deeply integrated with Slack. I mean -- and Bret, you've done so much of the leadership here with Slack and with Stewart, so maybe you could just address where we are and how you see the future acquisition environment.

Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst : Bret, I was hoping you could touch on some of the growing pains that were alluded to with MuleSoft. I think you also mentioned that there were some changes made in that business that you feel pretty good about, so maybe just unpack that a little bit. And Amy, maybe as a follow-up to that question, how should we think about the seasonality and modeling of the data cloud business just given it's the first time that you're breaking that out?