Mike Spencer: Thanks, Raimo. Bo, let’s go to next question.
Operator: Thank you. We go next now to Brad Zelnick at Deutsche Bank.
Brad Zelnick: Great. Thanks so much for taking my question. And Bret, best of luck to you. It’s been a pleasure. My question is for Marc. Marc, you have a lot of pressure out there from all kinds of investors to drive profitability, including some activists. But paradoxically, it would seem an amazing time to put money to work with all the dislocation of the world creating opportunity. How do you do both at the same time?
Marc Benioff: Yes. Thank you Brad for the question, because I think it’s probably what’s on my mind every day. And first, before I go to the question, I want to go back to Raimo, and Raimo, I want to tell you that our thoughts and prayers are with your CEO for a full recovery, and we’re so sorry to hear about his diagnosis, and Barclays is such an important partner of ours, but your CEO is so fantastic and we’re thinking of him every single moment right now. So Brad, you’re right. We are in a moment here were one of our goals, strong goals, as you can see by these results is to increase our operating margin. And we’re not going to do anything that’s going to prevent that increased momentum. And as a shareholder myself, that’s my thought every single day.
We also realize we want to reduce dilution. That’s also why we’re doing our stock buyback. And we’ve talked about that extensively. It’s been extremely important. I think that we bought back a considerable amount of stock during the quarter that we, I think, set a goal that we’re going to buy back about $10 billion. And I think that we have bought back an extensive amount I think, over $1 billion in the quarter.
Amy Weaver: Yes, about 11 million shares, $1.7 billion returned to shareholders this quarter.
Marc Benioff: So I think that’s extremely important as an action. So reducing dilution is very important to us, an increase in our operating margin is very important to us, increasing our profitability, but this is a massive opportunity. Every company is going through a digital transformation. You and I both know very well, it’s all begins and ends with the customer, and that’s why we’re closing these incredible transactions globally. At the same time, you know that there’s all kinds of opportunities out there, but it has to be balanced and we have to weigh those. And I think some of the transactions that we were able to do in the past, when we’re a smaller company, a more tactical company or maybe some more from the hit from an acquisition perspective, and I think we’ve done, I don’t know, Amy, would you say more than 60 transactions or more.
Amy Weaver: Yes, 60-70 probably over the years.
Marc Benioff: So as we do even the smallest transaction to the largest, it has a different frame and a different calculation. Look, it’s one of the reasons why we recruited Mike to the company. He had the background, and you all know Mike from Microsoft, because we wanted that kind of financial discipline. Amy and I talked about it very closely. As she came in, we spent a lot of time thinking about who we would recruit and as we identified somebody who could guide us specifically in that area, we picked Mike, and this was important. And we’ve also made other major changes to Amy’s team so that she had the best A-team possible. And now when we look at this going forward, we want to do it all. We want to continue to grow revenue, we want to continue to grow our operating margin and we want to look at strategic opportunities.
But we’re not going to do that at the expense of our operating margin. We’re going to continue to grow it. And I think you know at Investor Day, we said that, we have the short-term goal of 25 points. But I think that the reality is, is that we like to feed our targets, and we’re not going to get crazy with you on this call, but we’re doing everything we can to make these numbers go up, and we will continue to do that in all these areas that you see and you know the company, as well as anybody who’s been inside and outside this company, you know every single part of it. You know that we have lots of opportunities, lots of levers, lots of things that we can do. I think that you also watched us very closely through 2008 and 2009. And you can see how we acted then to increase operating margin, and we are going to continue to do everything we can to make this the best company possible, best numbers and also the highest values in the industry and be an example for others as well.
