Salesforce.com (CRM) Q1 2017 Earnings

Salesforce.com (CRM) CEO Mark Benioff said the company experienced it’s best 1st quarter in its history

“It’s the best Q1 we’ve ever seen. There is some incredible numbers you’re going to see including the cash flow number. Revenue for the first quarter as you saw grew nearly to $2 billion that was up 28% in constant currency that was just above our expectations. Deferred revenue also grew more than $4 billion up 32% in constant currency that was also above our expectations to see deferred revenue grow with a three in front of it at this size and scale.”

Took some time to bash the competition 

“We’re well positioned for another great year. This is amazing I think that one of the reasons that we are doing so well is because Oracle and SAP are doing so poorly in the cloud, they just have not been able to make that transformation that we’ve made, that other companies have made, and we just continue to take market share from them and gain customers at a record levels and you can see that their growth numbers are nothing like we’re putting up here as we deliver our first quarter and it’s happened because Salesforce is really the only company totally focused on companies helping to connect with their customers in a whole new way.”

Salesforce.com (CRM) COO Keith Block said they are seeing larger and larger transactions

“So we began fiscal 2017 with a record number of large transactions more than any other first quarter in our history as a company. The value of these large transactions across our clouds continue to increase. We have built on our tremendous momentum from Q4 and in fact we closed yet again another nine figure transaction in the first quarter.”

Signed deals with Amazon & Uber

“An example, in Q1 we signed a significant and strategic agreement with Amazon. We are now their company-wide customer platform and this is a huge expansion of our relationship with them and we plan to use more Amazon services in the future.  Uber one of the world’s great innovative companies, another expansion in the quarter, they’re an incredible innovator with off-the-chart growth. They selected Salesforce to be their global customer success platform, so they can build one-to-one journeys at scale for millions of Uber riders worldwide. This is one of the most innovative companies as I said and they are driving their innovation by leveraging our customer success platform.”

Salesforce.com (CRM) CEO Mark Benioff highlighted some emerging trends which he thinks will help the company continue to maintain its lead

“When I look at kind of the next major trend for Salesforce and our industry that will drive tremendous growth is got to be artificial intelligence. And as we look out into the future and we start to look at extreme improvement and advances in artificial intelligence whether it’s machine learning, whether it’s deep learning, whether it’s machine intelligence itself, I think that those kind of capabilities appearing inside our applications that is going to be a major growth capability going forward.  So Heather, when I look forward, what I see is an AI first world and for every customer is going to be able to get whole another generation of productivity out of artificial intelligence, machine learning, and deep learning.”

Salesforce.com (CRM) CEO Mark Benioff emphasized his respect for Jeff Bezos and the rest of the AWS team

“Number one I’d say we love Amazon, we’ve got a great relationship with Amazon, they are a huge user of Salesforce and that certainly has been a huge part this quarter as well. We did a very significant and very large transaction with Amazon and Jeff Bezos, and I have a great meaning of the minds, the future of the cloud. I think that it’s been a great relationship and partnership for us. We are definitely exploring ways so we can use AWS more aggressively with Salesforce. Of course we know that we run one of the largest application development capabilities in the world on AWS which is Heroku. We also are building our new IoT cloud on AWS. We also introduced new capabilities for our marketing cloud last week on AWS. And we have a lot of research and development capabilities in AWS. When you look at Amazon today, there is no public cloud that is more sophisticated, more well used by enterprises ad one that has more robust capabilities than Amazon. They have done a spectacular job in defining this kind of infrastructure as a service market. They of course dominated.”

Continuing to take market share in CRM space

“But the third thing I would say is when you look at all the innovation Marc is talking about and you look at market share and you probably extend we took market share again in Sales Cloud but even more importantly we took market share at the CRM level. Number one again, I took a 150 basis point and our key competitors are falling behind and actually losing market share and so that’s exciting to but this is a continuing trend.”

Salesforce.com (CRM) CEO Mark Benioff said that being a cloud company isn’t just about technology

“As part of kind of the market trends, there is a lot of legacy on premise providers out there quite frankly that are still trying to figure out if and how they can possibly transition to the cloud which is very difficult, a lot of companies will claim that they are a cloud company. But the reality is being a cloud company is about technology, it is about a business model and it’s about a culture of driving customer success.”

Salesforce.com (CRM) COO Keith Block mentioned their partnership with Accenture as a resounding success

“I just last week I addressed the Global Partners Forum at Accenture in Munich and talked about digital transformation and how Accenture and Salesforce are doing so well together. And just to give you an example of Accenture, we just don’t have a go-to-market relationship with them which is terrific and they continue to build their practice, they’re also a very large customer of us, so they are leveraging the Lightning platform, they are rolling it out very aggressively, they are getting all the benefits of it and they are building products on top of our platforms. So with a beautiful 360 degree relationship with Accenture that has really served as a model for all of these great systems integrators.”

 

 

Salesforce FY 3Q16 Earnings Call Notes

salesforce.com’s (CRM) CEO Marc Benioff on Q3 2016 Results

CEOs don’t want to talk about cloud, they want to talk about customers and growth

“I want to tell you, I met with hundreds of CEOs around the world. And I’ll tell you, when we’re meeting with CEOs, they are not that interested in talking about honestly about the cloud or about social or mobile. They want to talk about their customers and they want to talk about their topline, they want to talk about how they’re going to grow that topline, and this is the really, really exciting thing that’s going on, which is this customer revolution.”

There is no doubt we are at a tipping point in cloud platforms

“there is no doubt, we are at a tipping point in cloud platforms. And companies who have been cloud deniers like SAP and Oracle are paying a horrible price in single-digit and negative growth, because companies are not buying their products, because they are not modern. And they are not built-in this kind of modern architecture.”

We are a big customer of Amazon Web Services

The next layer down is, kind of what we traditionally call Infrastructure-as-a-Service. Amazon Web Services, which we are a huge customer of Amazon Web Services, Amazon is also a huge customer of Salesforce, and we use the Amazon Web Services to build our products”

We also work with Microsoft and think Azure is terrific

“Salesforce also has been working with Microsoft on how we’re going to be using Azure as part of our product line as well. We’re very excited about Microsoft. We also have a great relationship with Microsoft. We’ve talked about that, and I think Azure is terrific. ”

And we use Google’s platform too

“And Google, by the way, is a huge customer of Salesforce. We use Google’s platform very extensively at Salesforce as well. And I’ll tell you something that it’s critical for the operations of our company, and the Amazon, Microsoft and Google’s cloud platforms.”

The modern IT infrastructure is flexible application at the top layer, rapid development in the middle that is run on infrastructure as a service through Amazon, Microsoft and Google

“One, very flexible dynamic, highly innovative, three releases a year, applications at the top; in the middle, rapid application development and deployment of apps, like I was talking about new apps appearing on my phone instantly from my IT department in that APAS area; and also an Infrastructure-as-a-Service, where we partner with Amazon, we partner with Microsoft and we partner with Google, those are three core strategic partners in Infrastructure-as-a-Service, and that’s the modern IT infrastructure.”

All these buzzwords are table stakes. The question is what are you going to do with that technology

“All of those things, the cloud, social, mobile, data science, deep learning, MLP, machine intelligence, those are table stakes. Those are table stakes. What you’re going to do with that technology?”

Are you a cognitive company or a customer company?

“So there was a really good discussion between Ginni Rometty, who is the CEO of IBM and John Stumpf, who is the CEO of Well Fargo Bank…when she is discussing her strategy is to become the cognitive company. And when he is discussing his strategy it’s to become the customer company. And I think that we too have to decide what kind of companies are we going to be? I’m going with customer-company”

Every company is afraid they are going to be uberized out of this world

“there is a transformational force that is wafting its way through all of these companies and every company is afraid that they’re going to be uberized out of the world. And they see it happening. And it could be financial services. It could be IBM”

Salesforce 3Q14 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Never seen a bigger update than the analytics cloud

“regarding the analytics cloud, which is that we have never seen faster uptake and faster traction when it comes to new product. And that gives us a level of incredible excitement.”

Sales is a multi-billion platform, so is analytics

“When we look at sales, it’s obviously a multibillion dollar market service platform, especially marketing is becoming that way. But analytics is already that way. Analytics, business intelligence, is one of the biggest, most exciting markets in the whole industry.’

We want to be an analytics platform

“Our vision is we want to be the platform for analytics for all companies. And we don’t want to roll first with an analytics app. I hope that partners out there are building that app on our platform, but this is what’s existing, is that we’re going to have a huge ecosystem around this product, and that’s what’s going to drive it.”

Three keys to go to market strategy

“there are three things that are important as we go to market. One is obviously to speak the language of industry. We think that’s very important, because when you speak to a bank, you need to understand the language of the bank, what the customer challenges are, and what the opportunities are, and how you can apply the customer success platform to that business problem.

The second is to build up the largest ecosystem in the world, and that takes many forms, starting with SIs and boutiques and agencies which are key influencers, obviously. It’s also about ISVs, and we’re doing some terrific work with ISVs. We kind of revamped our ISV process. And then resellers for coverage. So that’s the second area.

And then the third is our international expansion, and you can see the results already starting to happen, for example, in Asia Pac and Europe. And we continue to invest across the board in our distribution capacity, adding more AEs, more reps, more selling capacity, opening our data centers and expanding our partner networks. “