It’s about automation. It’s about doing it on a global basis for these companies. And ultimately, for them, it’s about taking advantage of incredible new artificial intelligence technology that before was not possible.
Amy Weaver: Marc, if I could weigh on there as well. I think Marc stated it well. Companies are still really focused right now in this environment, on productivity, on automation, on time to value. You certainly see it from the CFO as my counterparts around the world. Real focus on every dollar that’s being spent. We’re now entering our sixth quarter of measured customer buying behavior and we’re saying that this has been continuing recently. And that does reflect, particularly in areas like SMB, self-serve, create and close, you see this in professional services. But I’m also really excited about what we’re seeing in terms of how we can step in and really help our customers get to their goals. Brian, I don’t know if you have anything to add.
A – Brian Millham: No, that’s great, Amy. Exactly what I was going to say, a lot of demand at the top of the funnel for us for new technologies like Data Cloud and like AI, but also seeing some headwinds, no doubt, from our more transactional business, as you stated. So Mark, thank you for the question.
Michael Spencer: Thanks, Mark. Operator, we will take next question, please.
Operator: Your next question comes from the line of Brent Thill with Jefferies. Please go ahead.
Brent Thill: Marc, really nice improvement in deals over $1 million, up 80% year-over-year. You’ve all alluded to this larger contract you landed. I’m just curious, do you feel like this is a new environment? Do you feel this is Miguel and the team having better gel in the field. What do you — any more color there, if you could talk to you on the bigger deal front would be helpful.
Marc Benioff: There’s a lot of debate on the management team and putting together this call on how we’re going to answer that question. We don’t want to, in any way, give you indications that we see this environment going behind us. That said, we see a lot of green shoots. There’s just a lot of opportunities. Customers are excited about — and I think Japan, I would say, is very much a metaphor for me. When I was there about a year ago, for them, it was still the pandemic. Everyone, when I had lunch with my employees, they had to wear masks a year ago. So this was the first time when I felt like, kind of back to normal and the pandemic hangover is kind of ingested by the customers. I think that we’re cautious about saying, oh, it’s all green shoots, everything is going, we’re back to normal.
But at the same level, we are honest with you that we have a lot of green shoots and in products, in geographies. And you can see in this growth rate in large deals. So we’re excited. I don’t think we’re willing to say to you on the call, hey, we’ve turned the corner. We want to but we’re not sure because for a lot of customers, they still are measured in their buying environments. You know that. You talk to these customers. You talk to the channel partners. They’re somewhat measured in their buying environments. But I would say people are a lot less measured than they were is one way to put it. There’s definitely a reduction in the measured environment. And on a global basis, and like I said, in some of these customers in the last 30 days, I was in — I can give you my direct experience.
I was in San Francisco, Los Angeles, Las Vegas, Stuttgart, Germany, I was in Nice, Monaco. I visited with our customers throughout that area. And also, I went up to Amsterdam, to France. I had a large customer dinner in the U.K. in London. I went to the U.K. Safety Summit. I then came back and went to Japan. I think I see something very consistently, which is customers are extremely excited about AI everywhere we go. It could be government, it could be commercial organizations. It could be technologists. Everyone is excited about AI. At the same time, there is a lot of confusion about what AI can and cannot do. And I think that’s a huge opportunity for us to tell stories to our customers of what the success opportunities are in the enterprise with AI and also what the reality is for a lot of these customers.
When I mentioned I was in Vegas. When I showed up in Vegas at the Wynn Hotel, the customers are — they have our product in their hands, welcoming me. The whole team comes out because they’re so excited because they used Salesforce, it’s very flattering. When I got to Disneyland in Anaheim, which is something I have done 4 times this year, and obviously, they’ve become also one of our very largest customers in the world. Every Disney guy and they use Disney guys, which is a product. I highly recommend it to all the Disneylands, Disney Tokyo on Monday and in Disney Anaheim. Been talking to the Disney guys and they use Salesforce and Slack to make those tours happen. They use Salesforce call center now for Disney+. On the Disney store is Commerce Cloud.
It’s an incredible success story, but it’s a huge opportunity for them to take another level of Disney where I certainly can see how all that information can get translated into AI. And that when I walk in the park, I’m expecting the Mandalorian to come up to me and say, “Hey, what did you think of the episode last night? It hasn’t happened yet. I think we’re all kind of on the cusp of delivering that full customer 360 for Disney.” I think Bob Iger has been doing an incredible job in his vision for the future of the company with AI Assist extraordinary. And I can kind of go customer by customer, story by story. And this excitement, this energy, these ideas of innovation of AI were not in place a year ago. Because don’t forget, a year ago, I don’t think any of us have used ChatGPT or Bard or Anthropic or Cohere or Adapt or any of the new AI companies.
None of us had really had our hands on or envisioned what it really meant to us or that we would have Copilots, and that those Copilots would give us the ability to do all kinds of next-generation capabilities. But a year later, it’s a technology revolution. And we just want to make sure it’s a trust revolution. We want to make sure it’s about an AI and CRM and data revolution. I think we hit it right with the Data Cloud. We have — we still have a lot of work, as everyone does in our industry, on AI and making it safe for our customers. This is going to be incredibly important. I think for a lot of customers, they realize that they’d like to just let this AI unleashed autonomously but it still hallucinates a huge amount and it also is quite toxic.
So we’re not quite ready for that revolution. But every day, it’s getting a little better. And when I — going through the streets of Tokyo, it’s not quite the minority report, which is a movie that was partly written by our futurist, Peter Schwartz, but it’s getting closer to that idea. And when I walked into some of these stores, there’s definitely a lot more automation based on my customer record but not quite the level of automation that Tom Cruise felt when he walked into that Gap store, if you remember that scene, which was so amazing, which is very much front of mind for a lot of our customers because they want to have that capability and they want us to deliver that for them.
Michael Spencer: Thanks, Brent. Operator, we will take next question, please.
Operator: Your next question comes from the line of Karl Keirstead with UBS. Please go ahead.
Karl Keirstead: Okay. Great. Maybe I’ll direct this to Amy and Brian. Salesforce obviously made a fairly significant pricing change early in the fourth quarter. And maybe, Brian, I’d love to get some color on the receptivity. And Amy in particular, is there a way you might frame the extent to which the price change may have impacted the guidance for 11% constant currency in the fourth quarter? And also, was that perhaps one of the drivers for the early renewals that you saw in 3Q as some customers maybe wanted to get in front of it? Thanks so much.
Brian Millham: Hey, Karl. Thanks for the question. Appreciate it. Price increases landed as well as the price increase can, I guess, with our customers out there. I think when we’re delivering value to our customers and they’re seeing benefits from our technology, we feel good about our ability to go execute against this. It’s still early, honestly. We just introduced this a few months ago. And so we have seen certainly some benefits from it. But we’ll see these benefits roll in over the next, really, three years as these contracts come up for renewal. And so yes, there’s been receptivity to it but the big impact will be seen over the next three years. We’re not going to see it in the near term, honestly, in our numbers. Amy, any comments?
