salesforce.com, inc. (NYSE:CRM) Q3 2019 Earnings Conference Call Transcript

Nov 27, 2018 • 05:00 pm ET

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salesforce.com, inc. (NYSE:CRM) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen and thank you for standing by. Welcome to the CRM Q3 Fiscal Year '19 Earnings Conference Call. At this time, all participants are in a listen-only mode. Following management's prepared remarks, we will host a question-and-answer session and instructions will be given at that time. (Operator Instructions) As a reminder, this conference call is being recorded for reply purposes.

It is now my pleasure to turn the conference over to John Cummings, SVP of IR. Sir, you may begin.

Executive
John Cummings

Thanks so much, Brian. Good afternoon, everyone, and thanks for joining us for our fiscal third quarter 2019 results conference call. 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 Keith Block, Co-CEO; Marc Benioff, Chairman and Co-CEO; Mark Hawkins, President and CFO; and Bret Taylor, President and Chief Product Officer.

(Forward-Looking Cautionary Statements)

With that, let me hand the call over to you, Keith.

Executive
Keith Block

Thank you, John, and thanks everyone for joining us today. As you can see from our results, we had another great quarter as we continue to deliver strong growth, customer success and execution at scale. Revenue in Q3 was up 26%. And given the strength of the quarter and our outlook for Q4, we are raising our FY19 full year revenue guidance to $13.24 billion at the high-end of the range. This represents 26% growth this year. Obviously, we are very, very proud of the quarter and momentum in our business and our leadership position in the market. We're also initiating revenue guidance for FY20 at $16 billion, at the high end of the range, representing 21% growth for year and demonstrating the incredible demand for the solutions only Salesforce can deliver. We are clearly executing on our vision of transformation and success for our customers, and we are doing it at scale. Every company in the world has a mandate to digitally transform its business. We continue to see this in Q3 with strong performances across every industry, every market segment and every geography. We grew 25% in the Americas, 26% in APAC and 31% in EMEA in constant currency.

Now, since Dreamforce at the end of September, I've traveled around the world meeting with more than a 100 CEOs and world leaders. The conversation is consistent everywhere I go. It's about digital transformation, it's about leveraging our technology, it's about our culture, and it's about our values. This sea level engagement is translating into more strategic relationships than ever. In fact, in Q3, the number of deals generating more than $1 was up 46% over last year and the number of $20 million plus relationships we have continues to grow significantly. In fact, in the quarter, we renewed and expanded a nine-figure relationship with one of the largest financial services institutions in the world, very, very excited about this. As you know, an overwhelming majority of our revenue is multi-cloud. Customers