Salesforce, Inc. (NYSE:CRM) Q3 2023 Earnings Call Transcript

Brian Millham: Yes, Marc, I appreciate it, and certainly don’t want to contradict anything that you said, but — I just —

Marc Benioff: Go ahead, Brian. Why should today be any different?.

Brian Millham: Yes, agreed, Mark, I really believe that being together drives more learning, better collaboration, better networking and better enablement. We have a broad portfolio of products and we saw through the pandemic that we — there’s a lot to learn around the way that we’re positioning our products, new organic products coming out, acquisitions that we’re positioning our Customer 360 — to our customers. And so I really like people coming back in the office. I like that connection that we have to one another, I think, it’s part of our culture and how we operate, I’ve asked my team recently to spend more time in the office. But importantly, I’ve also asked them to spend more time in front of our customers. It’s a big differentiation for us, when we’re out talking to our customers and driving the success that they expect from us.

And so I want to drive higher productivity and the performance culture and one of the ways, I want to do that to ensure that we’re spending more time together, whether that’s in the office or out in front of our customers.

Amy Weaver: Great. And so then Mark, turning to your question about how that may assess our real estate strategy and margin and savings going forward. So over the past two years, we have continued to re-imagine our real estate strategy. That is not only to optimize for scale, but also continue hybrid work environment and how people are working and how they’re using their space? And this has included reducing our footprint fairly significant right now. Some of that you see when we do large write-offs over these times, but a lot of it has also been opportunistic. When leases come up, and we don’t renew when we consolidate into areas. It’s something that we are continuing to benefit from. It is also seeing that we are continuing to evaluate.

We have a new head of real estate Relina Bulchandani, who is doing an incredible job along the deeper share and really looking at every aspect of our real estate and say how we use it the best and the most efficiently in this new world.

Mike Spencer: Thanks, Mark. Bo, let’s go to the next question.

Operator: Certainly. We’ll take our next question now from Raimo Lenschow at Barclays.

Raimo Lenschow: Great. Thank you. I just wanted to — a question for Brian. As you kind of started diluting already on the initiatives you’re taking here, like how should we think about — what are you seeing in terms of what — in the field in terms of there’s macro, but it’s also relatively a decent penetration of Salesforce. Like how do you think this will play out? And how do you see your sales force position in terms of sales capacity, et cetera, which kind of sell its important? Thank you.

Brian Millham: Thanks, Raimo, for the question and really appreciate it. Certainly, the buyer environment has changed out there in the market. It’s become more measured. But our platform is still mission critical to every one of our customers out there, and we’re seeing that play out in the demand environment. The pipeline that we’re creating is very healthy in the market right now. The interest in our customers C360 platform remains very high. We’ve repositioned our products and our selling teams to sell not just to the CEO, but to the CFO, actually across the entire C-suite. We want to make sure that we’re covering off everybody that could potentially say yes or no to a buying process. We’re going to focus on what we can control.

We have plenty of capacity in the market right now. We have lots of AEs that we’ve hired over the past couple of years. And we want to make sure that we’re doing the things that we can to continue to grow market share across the entire portfolio. We continue to see multi-cloud expansion. You mentioned that. We think we have a huge opportunity to continue to sell to our existing customers, more of the products that are in our portfolio, both inorganic and the acquired companies that we have. And so we still see a big opportunity for us to spend a lot of time with our customers, selling the entire product portfolio. And the size of our selling base, the customers that we have still a very big opportunity for us to expand our TAM and execute on our growth strategies.