Salesforce, Inc.
Q3 2021 Earnings Call Transcript

Published: 1 Dec 2020

[Operator:]

Welcome to Salesforce Fiscal 2021 Third Quarter Results Conference Call. At this time, all participants are in listen-only mode. Please be advised that today’s conference is being recorded. I would now like to hand over the conference to your speaker Mr. Evan Goldstein, Senior Vice President of Investor Relations. Sir, you may begin.

[Evan Goldstein:]

Thanks, . Hello everyone, and thanks for joining us for our fiscal 2021 third quarter results conference call. I'm Evan Goldstein, Senior Vice President of Investor Relations. Our results press release, SEC filings, and a replay of today's call can be found on our IR website at www.salesforce.com/investor. With me on the call today is Marc Benioff, Chair and CEO; Mark Hawkins, President and CFO; Bret Taylor, President and COO; Gavin Patterson, President and Chief Revenue Officer; and Amy Weaver, President and Chief Legal Officer. As a reminder, our commentary today will primarily be in non-GAAP terms. Reconciliations between our GAAP and non-GAAP results and guidance can be found in our earnings press release. Some of our comments today may contain forward-looking statements that are subject to risks, uncertainties, and assumptions. In particular, our expectations are on the impact of the COVID-19 pandemic on our business, results of operations, and financial condition, and that of our customers and partners are uncertain and subject to change. Should any of these materialize or should our assumptions prove to be incorrect, actual company results could differ materially from these forward-looking statements. A description of these risks, uncertainties, and assumptions and other factors that could affect our financial results is included in our SEC filings, including our most recent report on Form 10-K. With that, let me hand the call to Marc.

[Marc Benioff:]

Alright. Well thank you so much Evan and just thanks to everyone for being on the call today. I hope you and your families and colleagues are all safe and healthy and preparing for the holiday season. It’s nice and crisp and cold here in San Francisco, and we can feel Christmas approaching. It’s all in the air and as the season approaches, I wish the very best to you. It’s been such an unbelievable year in so many ways for so many of us, and you know we’ve really had to re-imagine every part of our business and our lives and also work with so many of our customers, and really even our families to do the very same thing. The past has really gone, and we can all feel that. And the future is coming. We can see there’s certainly a light at the end of the tunnel, especially with these incredible vaccine announcements, but here we are in this present moment, and wow there’s so many things happening and so many exciting things to talk to you about on this call today, and we're reimagining our entire business, we're reimagining our industry, and we're even reimagining Dreamforce.

[Mark Hawkins:]

Hi, Marc. First of all, I can’t thank you enough and I’m going to come back to those comments at the end, but to say there is gratitude is a huge understatement to me, to say that to you personally. You’ve been amazing and for the entire Salesforce team and I’ll talk a little bit more at the end and I couldn’t be more excited to be working with Amy, who is – I’m going to talk more about as well, just an amazing executive, an amazing friend and partner. So, I’m going to come back to that, but I just have to say that Marc I’m incredibly grateful deeply. I’m going to come back to that. I want to say that I hope everyone had a safe and enjoyable Thanksgiving, despite these challenging times. And as Marc described, we delivered another record quarter in Q3 with durable topline revenue growth, as well as strong operating margin performance. And let me take you through some of the results for Q3 and I’ll begin with top line commentary. Total revenue for the third quarter was 5.42 billion, up 20% year-over-year and up 19% in constant currency. Looking at the drivers of growth, we had strength across geographies and across clouds. Our subscription and support revenue growth by Cloud was as follows

[Amy Weaver:]

Thanks Mark. It has been an absolute joy to partner with you over the last and I have to say that one of the best part of taking the role of the CFO is that I get to work even more closely with you throughout this transition. This week I’ve been thinking back to when I joined Salesforce seven years ago, we had just under 13,000 employees and had not yet crossed $4 billion in revenue. Today, we now have more than 54,000 employees and guiding over $21 billion and what’s attracting the most is that we still got so much growth ahead of us. My focus will be to support that momentum as we continue to grow, as well as the scale of the business efficiently. And I’m very much looking forward to continuing to work closely with our entire executive team and our Board of Directors, as well as going to partner with our shareholders in the coming months. I am just incredibly grateful for this opportunity and the faith in me and taking an incredibly excited about the future of the company. And with that Evan, shall we open up the call for questions.

[Operator:]

Our first question comes from David Hynes with Canaccord Genuity. Your line is open.

[David Hynes:]

Hey, thanks very much for taking the questions and Mark Hawkins congrats on the well deserved retirement. You're certainly going out with a bang here. Maybe this question is for Marc Benioff. It sounds like maybe Bret, given, he was kind of the architect of the Slack deal, I'm curious, looks Slack’s going to give you access to huge amounts of, you know rich conversational customer data. How do you see that kind of advancing your efforts around AI? And I guess maybe just related to that, I think we all know what Slack is today, but what’s your vision for what it could be with Salesforce in, you know, three to five years from now?

[Marc Benioff:]

Well, let me give you two minutes, and then or a minute, and let me have Bret come in next to fill in the details. You know, when I look back at the dreams that we've had of what the social enterprise means over the last couple decades, it's a very rich user interface that kind of front ends all of our services and kind of in the way graphical user interfaces were a major moment in our computer industry. I think these collaborative interfaces and video-based interfaces are the next major moment in our industry. But underneath those services and you've kind of teed it up by asking the question this way, you have so many rich services, applications, integrations, artificial intelligence, and fundamentally big, you know, big data lakes. And the idea is, how can you take all of that and bring it to the user, to the power professional, to the worker, to the knowledge user, or even to the CEO and turn it into a powerful experience? And now this combination of Slack and Salesforce, exactly as I mentioned, you know, my whole world is on this platform, and we call it Customer 360, but the idea that gee, number one, there's never been a more important time for sales and B2B sales. I see that with our customers every day, I look at our salesforce, obviously, it's enormous, but our ability to call at every level, our ability to call into the CEO level easily, our ability to have much higher levels of productivity with our sales organization, how we had to move our call centers and customer service organizations on a moment's notice into their homes. Our ability to deliver record levels of marketing and marketing interactions like we did this weekend. The analytics that are needed, and you probably saw the analytics that we published around the holiday. Well, now all of that completely coupled with this incredible collaborative interface. And that is the magic. And that is what it's so exciting. That's been our dream. Now, it's our reality. And I want to introduce you to the person who put all of these things together, and that's Bret Taylor. So Bret, do you want to take this to another level?

[Bret Taylor:]

Yeah, thanks, Mark. I mean, I think you really contextualized it well. I mean, fundamentally, we really see the world as fundamentally having shifted this year. We're entering into this all-digital work anywhere world, and every executive that I talked to, and every industry is doing this not as something temporary, but really a moment that accelerated the digitization of the economy. Consumer goods have gone from, you know, retailers to direct consumer. Medical care has gone from doctor’s offices to Telehealth. Retail has gone from brick-and-mortar to curbside pickup. Marketing, as Marc mentioned, this last weekend is a perfect indication of this. We saw mobile push mode notifications go up 131%. We saw SMS grow 171%. Behind all of this is fundamental shifts in the way we work, fundamental consumer behaviors and fundamental changes in behaviors and every interaction. And I think we really view Slack as really the system of engagement for every employee, for every partner, and for every customer interaction. And I think in this all-digital work anywhere world, when you think what does it mean to be successful in sales, what does it mean to be successful in customer service and marketing, e-commerce, it really is about facilitating this all-digital, work-from-anywhere world to enable team selling, to enable people in a contact center to swarm on a case digitally whether or not you're in the same building, to enable marketers to plan a campaign, to enable merchandisers to plan what goes on the front page of a commerce app or a commerce website. . And, you know, we've been using this phrase, really, this is the operating system for the new way to work. And you know, our customers are coming to us now recognizing that because the economy has shifted so dramatically so quickly, they're pivoting from saying, “how do we respond to the crisis, how do we grow, and how do we thrive in this new normal?” And we fundamentally think this combination is that operating system for growth for every company in the world.

[Operator:]

Our next question comes from Derrick Wood with Cowen and Company. Your line is open.

[Derrick Wood:]

Thanks. I wanted to touch on the operational plans for on-boarding Slack. Maybe, you know, could you compare and contrast the strategy to integrate Slack versus what you've done with Tableau or MuleSoft? And then Mark Hawkins, you know, thanks for the EPS guidance, but I know there's a lot of below the operating income line factors. So, can you give us any goalposts around how to think about how Slack impacts operating margins, and how to think about margins next year?

[Mark Hawkins:]

I'm happy to take the operating margin discussion, and perhaps Bret, you may want to talk about the operating plan integration. I'm happy to chip in there as well, if that’s helpful. Derrick, first of all thank you for the question. We are going to be factoring in Slack’s business profile into our overall business for next year for the operating margin. We'll give the operating margin and the cash flow growth for the entire company for normal tradition in Q4 call, for sure. You can see because it's a public company, it’s profile is different than Salesforce. It'll be dilutive to our operating margin in aggregate. And there'll be the purchase accounting side of it, but we’ll give you very specifics in Q4 there Derrick. Not only on the operating margin, but the cash flow, and then even the latest on the revenue growth in Q4. On the integration plan, Bret, I don't know if you want to touch on that?

[Bret Taylor:]

Yeah, I'm happy to take this Mark as you said. You know, I think our philosophy is very similar to our philosophy with MuleSoft and Tableau, which is number one, starting with our mutual customers and starting for, how can we, you know, help every one of our customers benefit from the combination of these two technologies, without really recognizing that Slack, you know, fundamentally, if you look at the happiest customers who use Slack, it is really the central nervous system for their company. And that's really connecting every single application at their company, not just applications from Salesforce. So that really means bounce in making sure you know, Slack has an independent brand and continues to serve every single company and integrates with every single system as your company, while also making sure that it really achieves the vision that Mark talked about, which is, it really becomes sort of the user interface to the Customer 360. It helps all of our customers be successful as they try to create a single source of truth for the customer data. I'm really happy with this strategy. It's really been effective with our integration with companies like MuleSoft and Tableau that have continued to thrive. And, you know, continue to be technology agnostic, while also becoming really integrated part of our value proposition to our customers.

[Operator:]

Our next question comes from Heather Bellini with Goldman Sachs. Your line is open.

[Heather Bellini:]

Great, thank you so much for taking the question and congratulations, Mark Hawkins. It's been great working with you over the years. And for Marc Benioff, I mean, Salesforce and Slack together, it seems like this is going to become the hub that connects all of the different Salesforce applications together and offers even more value for your customers. How do you see – in the context of the 90% customer overlap you mentioned, how do you see this evolving the digital transformation messages to customers that you're already sharing? And I guess the other piece is, when you think about the pieces of the Salesforce puzzle, if you will, would you say despite your efforts with chatter that this was one of the biggest remaining pieces you were missing? Thanks so much.

[Marc Benioff:]

Well, I mean, I'll start with the end, which is, there's no doubt that Slack just has an incredible approach to collaboration in a way that we really could never have imagined, especially in regards to the integrations and applications in the ecosystem that are built on top of it. Certainly, like chatter to have the collaborative interface and we’ll benefit from that because we've done such deep work in our own architecture around our Chatter API and some of the other key parts of our core system. But when you look at what happens when you put Slack and Salesforce together, you know the fundamental experience for the customer, it just changes. Of course, you're already doing wall-to-wall in the enterprise, which is very exciting for Salesforce is beyond just sales or service or marketing. It's into every department. We've already seen a lot of that with Tableau and the ability for Tableau to go wall-to-wall and you know Tableau is another product that users just love Tableau, users just love Slack, when we start to bring our Customer 360 into that, our ability to build applications with lightning, our ability to light up our own workflow, and build workflows to our customers and expose those through these channels, well that's where the fundamental expression of Salesforce and how it looks, whether it's on a phone or an iPad, or on your desktop, it's, you know, deeply modernizes it. And Brett, would you like to fill that in?

[Bret Taylor:]

Yeah, you know, you know, Marc, when I think about the opportunity for our customers, I just – every single customer engagement I've been involved with could benefit from this capability. You know this past quarter, one of the customers I had the privilege of working with is Ferguson, which is the largest wholesale distributor of commercial and residential plumbing suppliers. And this is a classic Customer 360 relationship where their CEO, Kevin Murphy and their CIO, Mike Sajor were really trying to connect everything from B2B and B2C commerce to customer service to their platform. And when I think about the vision of that, you know that company and I think about the opportunity to come into these, you know, these companies going through this digital transformation and trying to really say, how do we build the perfect digitally augmented experience and customers, this is the ultimate system of engagement. This is the ultimate way you can connect every employee, the ultimate way you can work with your B2B partners most of that way that you can transform your teams working on, you know B2C customer engagement. And, you know, I think that's when we look at the opportunity for our customers. So, we look at the opportunity for Slack customers. We really think that bringing these things together gives us such a complete value proposition. I think it's really exciting.

[Operator:]

Our next question comes from Brent Thill with Jefferies. Your line is open.

[Brent Thill:]

Thanks. For Mark Hawkins, just on the billion for the quarter, there were some question marks just as it relates to the deceleration, and I'm curious if there was anything behind the scenes that we should be aware of? We know, you had a difficult comp and you're coming into a seasonally strong quarter, anything to call out there on the billings number? Thank you.

[Mark Hawkins:]

Sure, Brent, first of all, thank you for the question. And, you know, nothing, you know, first of all, we don't really – billings is not a metric that we focus a lot on. We think CRPO helps us a bit more in terms of actually managing the business and that’s a metric that we track carefully. We feel like this just makes sense, it’s consistent with the revenue guidance for next year. And obviously in prior quarter, we lapped Tableau, but where we feel really good about this number, we feel great about the demand environment. Obviously, that’s why we raised again the revenue for the year and we initiated a — I think, a really appropriate guide for next year’s revenue. Not very many companies do five quarters in advance, so we feel good about the demand environment, but we just think this is consistent with all of that and look forward to executing on that.

[Brent Thill:]

Thanks Mark.

[Mark Hawkins:]

You bet, Brent.

[Operator:]

Our next question comes from Keith Weiss with Morgan Stanley. Your line is open.

[Keith Weiss:]

Excellent. Thank you guys for taking the question. And Mark Hawkins it’s been a pleasure working with you. Congratulations on the retirement. I wanted to ask on the Slack acquisition, really a two-part question. On the front end, maybe for Bret, can you talk to us about what you guys can do with Slack by owning it versus partnering? Because I think one of the things that has Slack differentiates which is – they’re open integration is the fact that they integrate with everybody. So why is it necessary to own the asset? And then on the back side, I wanted to ask just about the price tag. On the last conference call, Mr. Benioff, you talked about it being a tough environment for M&A for stuff being expensive and you’re making hard to make these acquisitions financially work out for you guys. What is it about this one, like how do you garner the confidence at this $28 billion price tag? Is the right price tag and financially this is going to make sense for our Salesforce over time?

[Bret Taylor:]

Yes, thank you for your question. I’ll start on the – just talking a little bit about why it’s important and why it’s valuable for our customers for this to be a part of our portfolio. The journey that we’ve been on over the past decade is really going from a company with a single value proposition around sales automation, so really – it’s vision for Customer 360. They can connect sales, service, marketing, e-commerce, analytics platform. And when you look at all of our largest deals, our happiest customers, our healthiest customers with lowest attrition, they’re not just using one of our products, they are really using this entire platform to get the single source of truth for their customers. And we see this incredible vision as Marc said, it’s been something we’ve been working at and thinking about for a long time, well before I even joined this company about how do you connect all of these experiences? How do you actually create a seamless customer experience team, customer service and marketing, which every single retailer in the world was worried about this past weekend? How companies? So, I’m really focused on not just selling, but customer success, which is really connecting the entire Customer 360. And when we talked about Slack really becoming and the user interface for the Customer 360, this is what we mean. I really think this is a way of delivering that vision to our customers and for them to deliver – our customers to deliver a vision to their partners and their customers through technologies like Slack Connect is really, really meaningful and really, really unique. And I think it captures candidly the new way that most of our customers think about their customer relationships. It’s not siloed by department anymore. It’s really end-to-end journey and to really achieve that we think that Slack is a tool that facilitates that in a really unique way and really help accelerate our customers, who are going through this transformation. And Marc I’m not sure if you want to comment a bit on your comments from last earnings call just to offer my perspective. We’ve been clear consistently that when we look at our M&A strategy and our inorganic acquisition strategy, it’s fundamentally, we have to be opportunistic. We have to make sure that we respond to unique conditions from our customers in the market. And this year, if anything else, it’s been hard to predict and this is an opportunity that we saw as we’ve talked a lot about this shift in the economy, the relevance of Slack to our customer base that has obviously dramatically increased over the course of the year. So, I do think that we – the market is very unusual this year, but we have to make sure that we as a company a beginner’s mind about where innovation can come from and recognize that we have to take timing what is available to us as we evaluate these inorganic opportunities.

[Marc Benioff:]

Yes, I would like to address that which is that, I think what’s very exciting is, this vision that Stuart and Bret have put together. And I think that when I look back in the , I don’t think I could have ever imagine any acquisitions happening this year or in this pandemic or in this all digital environment, we are just, kind of, grout forcing it right through where we’re making as many sales calls as we can and we’re collaborating very deeply as a company and all of a sudden Bret and Stuart coming together and say, yes, we can do this. And when we look at the result in vision, it’s a wow. It’s like something that we could have never imagined. And when we look at acquisitions today, we do have a little bit of a swagger, of course we’ve done probably over 60 deals, small, medium, and very large. On the whole, our transactions have been extremely successful. And when we look at our very large transactions especially ExactTarget, Tableau we look at how or what we’ve learned our ability to integrate companies to make one plus one equals three. We look at this and we say, wow, this is a game changer and we know how to pull it off. And we have a lot of our former executives for example at Slack already. So, we know a lot of those players. We work so deeply with the company both in a business development perspective, but just because they are our neighbor and we’re like, oh boy, the value that we can bring to customers is much stronger as one company than is two. And when you look at the difference in partnering versus owning it really means that we’re able to do things with our technology that we just could not do as partners and that’s the demos, the visions that Bret and Stuart had put together and look, when they presented this to me, I was sold and I am sold and I can’t wait to get out on the road and present it to customers because I know that they are going to be absolutely blown away about what this looks like for them.

[Operator:]

Our next question comes from Alex Zukin with RBC Capital Markets. Your line is open.

[Alex Zukin:]

Hey guys, thanks for taking the question. And mine, maybe just for Marc and for Gavin. I want to ask about the demand environment, particularly how it looks from a pipeline perspective for the fourth quarter. And Marc and Gavin, how are you seeing the priorities change through this pandemic. How do you think about that for next year as you look at the opportunity to solve these pain points. And Marc, I guess the other follow-up to Keith’s question is why now on Slack, why not before and why not next year?

[Marc Benioff:]

Well, it’s a good question. And let me kind of – I’ll tell you in two stories, but the first story is, we started out this year. I think everyone remembers we went through a very dramatic transformation in our management team. Keith decided to retire, which I fully supported and we knew that we were going to go through a big shift in distribution strategy. Our team members themselves and what we didn’t have written in the back was the global pandemic. So, all of a sudden in the first quarter, what was happening at Salesforce was distribution transformation and global pandemic and that shook our confidence. You might remember that, I also said pipelines appear to be really strong. So, even though in the middle of the quarter we went into global lock down in March and April, we think we’re going to come out pretty strong and we were very fortunate starting in the second quarter with number one, on-boarding a fantastic new CRO, Gavin Patterson, former Chief Executive Officer, VP, who was working with us, who I’ve known for so many years and coming in as our CRO and our President, taking his position, which he was doing so much with us already, but then really leading our global distribution operation and then we rebuilt our entire distribution management team as part of that, and we delivered the second quarter, which was our record quarter, we had phenomenal bookings, margins, revenues, cash flow across the board. And then the second quarter turned to third quarter, we are happy to talk about an unbelievable quarter. I mean, it was just remarkable, the performance of the company. I would never have imagined it – us in February and March when this started. Now, I’m like, wow, it gave me a lot more confidence in where we’re going, Now when we look at the fourth quarter, which pipelines, we have tremendous outlooks and we feel very good about our ability to succeed, you know, with architect with Dreamforce. That’s going incredibly well and we look at next year and we’re like wow we’ve never been more competitive. We’ve never been able to succeed more aggressively with our customers. We have solutions that are not only horizontal, but vertical. We’re strong in every one of our key categories from sales to service, to marketing, to commerce, to platform, to analytics, to integration, we’re able to deliver tremendous value. When I look at what we’ve done with key customers and I mentioned AT&T in the last call. So, when I look at what we’ve done with their management team, with their competitiveness, with the results that they’re getting, it just gives us a lot of, I would say, a gratitude in our ability to transform a company like that or any company and world – and we do it worldwide. And then when we bring in Slack, well, you know with these acquisitions, you never know exactly when they’re going to happen and we couldn’t – didn’t know when Tableau was going to happen. Of course, we always loved Adam and Christian before that, we didn’t know when ExactTarget was going to happen, we always loved Scott and we didn’t know when Stewart and Slack would happen, and when the moment – and the opportunity arises you have to look and ask yourself, are you strong? Can you do something like this or are you weak, or is it a moment where you just don’t have the swagger? And let’s face it, look at these numbers, so we just delivered Salesforce has never been stronger, never been more capable, it’s never had a more competitive position, it’s never been able to execute more acuity. Look at the IDC numbers, I don’t have to go through them in sales and service and marketing across the board. They’re very, very impressive and when we’ve gone up against tough competitors we have done just fine, and I think that we bring a lot of value to Slack right now at their size, as you know they’re going basically entering from the $1 billion to $2 billion phase, which I know extremely well and this is a moment where we can offer a lot of value. We’ve been there, we’ve lived that life, and we’re going to come in and we’re going to help them not just be successful doing it, we’re going to help them to just redefine the entire industry. And that dream and that vision that Bret and Stuart have is really unlike anything I’ve ever seen of any company or any product anywhere and when you see it all laid out you will just be blown away. I mean, I was and I have a lot of confidence that you will be as well.

[Gavin Patterson:]

And perhaps I should just add some comments as well, Marc.

[Marc Benioff:]

Please do Gavin.

[Gavin Patterson:]

Yes, what we saw in Q3 was a continuation of the strong demand that we saw in Q2 and it’s a very well-rounded performance across all the clouds and both in the U.S. and internationally we’ve seen strong demand around the world. And as we look into Q4 beyond, the pipeline continues to be very encouraging. So, I guess what I’m saying and you’ve heard it from Bret and Marc, as well is that I think the core of what we offer to be the trusted advisor for digital transformation. This is an imperative to every company and every organization in the U.S. and around the world and that conversation has become more urgent. And we’re finding that we’re getting very, very good access probably at least twice the access to decision makers, who want to have that conversation and want to get on and make that transformation and users in their departments. So the businesses I think are in really good shape. We’re confident going into next year. And as Marc says, I think Slack really rounds out that proposition. And I think it’s going to – and we feel very encouraged and very optimistic about maintaining this performance going forward.

[Marc Benioff:]

Gavin, I want to ask you a question, because I think it’s appropriate. Look you’ve been running this business now – so well now for several quarters, but just give us one more level of insight, what has been your greatest surprise, look you are – we’ve been friends a long time, you are a customer, you’ve been a partner, you’ve known a lot of our executives, now you’re deep inside the machine, what has been your biggest surprise working inside Salesforce and now working with our customers and doing these huge transactions that you’ve been doing?

[Gavin Patterson:]

Well. As you said, I’ve been a customer and I sure tell you what Salesforce could do for my business, and I thought we were reasonably excited about it, but it hasn’t been until I came into the company. It wasn’t until I came into the company and I realized that actually there’s so much more you can get if you align your complete business behind the Salesforce CRM system and the wider set of clouds. That’s probably the single most important thing I’ve learnt. The share potential of getting to a single source of truth, operating the Customer 360 and I see so much more potential in customers, who really embrace that vision and some guess get it today and we’ve got some great case studies demonstrate that, but others still have that opportunity. I think going forward. So, there’s plenty of potential left in the business on all the clouds. And I’d say the second thing I’d call out is, actually how great very big company, how agile the business is, and how we’ve been able to maintain the agility and grip of a small company, while managing to cut it to $24 billion or $21-plus billion in sales and 25% CAGR a year. It is quite remarkable. The decisions can be taken quickly. We can respond to changing customer needs and that is being critical, because I think if I look back over these last six months, making sure that we remain relevant to our customers, and so that we can help them through these difficult times, make sure that we’re there to guide them and help types of transformation, but demonstrate we’re able to listen and respond in terms of the propositions we offer. I mean, it’s been I think quite remarkable. So, it has been quite a ride and certainly been a privilege to be a part of it and I think there’s a long way still to go and another few chapters for the next book in it.

[Marc Benioff:]

Well, I think that we can say now with delivering this guidance of and looking at next year as well, Gavin, I just want to thank you, because I don’t think there is a more successful sales executive in enterprise software certainly at the size and scale that we’re operating in than you are and your leverage, your experience as a Chief Executive Officer is a very large 100,000 person company . I mean, you’ve done a phenomenal job. So, thank you.

[Gavin Patterson:]

Thank you.

[Operator:]

Ladies and gentlemen, we have reached the end of the allotted time for questions. I will turn the call back over to Evan for closing remarks.

[Evan Goldstein:]

Thank you for joining us on the call today. If you have any follow-up question, please email us at [e-mail] and we look forward to speaking with you next week at our Investor Day. Thank you.

[Operator:]

This concludes today's conference call. You may now disconnect.