Salesforce Q3FY22 earnings analysis

First, the big news that has been a long time coming: Bret Taylor co-ceo. How many quarters will we wait until Bret becomes CEO and Marc to Chairman? We have seen the Co-CEO show before with Keith Block which was very successful. We know Salesforce can execute well with this operational model. The question is does Marc trust Bret enough to hand over the reigns and when....

Slack was the focus of the call as I predicted in my Q2 analysis. The word "Slack" was said 81 times yesterday during the earnings call. No question that the first full quarter with Slack created a massive impact that Salesforce will continue to build on:

✔︎ Slack Connections up 176%. This is companies using Slack to message other companies. Think customers, partners, advisors, other external stakeholders.

✔︎ Slack customers with 100K+ spend up 44% Y/Y. ➡ This means they have successfully sold to Salesforce's enterprise customers. This is a result of their ability to integrate the acquisition and trust that customers place in Salesforce.

✔︎ 4 of Top 10 deals included Slack ➡ Cross selling and large deal creation will drive incremental multi cloud opportunities here.

We are just beginning to see how Slack becomes the new interface for Salesforce. Partners have started to get into the Slack game as well with DocuSign announcing a new integration last month. We will continue to see this become more and more important and what this means is that the partners in the ecosystem that have native apps will have an advantage over the rest. As the workflows, analytics and AI become more linked between the Salesforce platform and Slack, this will unlock a whole new way to create applications for every employee at the company beyond Sales and Service (ICYMI each of these clouds are a $6B business on their own now BTW). Who will be the first SI to acquire a Slack developer practice to enable these new solutions? This is going to create more consolidation of the ecosystem and more room for new partner apps and innovative services. Slack developer page here. Get started.

The Digital HQ of Slack + Customer 360 is driving success everywhere.