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Welcome back everyone. 
We have an exciting video to 

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jump into today. 
We're going to be talking about 

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Salesforce, the Enterprise level
business to business company 

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that I've referred to, as many 
Microsoft. 

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Now I've talked about sales 
forces being an incredibly 

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strong company, one has a very 
wide moat a very sticky product,

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one that's very difficult for 
companies to move from and their

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software Behemoth. 
This company really has a good 

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franchise of software 
applications. 

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Now, there is also, Some 
concerning news with Salesforce.

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I've done videos talking about 
the CEO seemingly not having his

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head in the game. 
He's been hanging out with 

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celebrities. 
He has Matthew McConaughey on 

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retainer for ten million dollars
a year and apparently he's been 

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invited to like Korn meetings 
and some stuff like that. 

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That's a little concerning. 
We also have them selling out 

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basically all of his shares any 
time he's paid. 

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So he's not holding his 
investments in the stock and 

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there's been some points of 
concern regarding sales force, 

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especially We with the 
governance of the company. 

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Now, they just had the recent 
quarter, we've seen the stock 

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jet up on. 
A lot of people are wondering, 

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what just happened is this real 
is Salesforce really on a good 

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track now or investors just 
becoming a little 

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over-enthusiastic. 
And that's what I hope to 

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answer. 
In this video, we're going to be

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looking at the numbers. 
We have them all imported into 

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qual trim. 
I'll be reviewing, the actual 

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data will show how the company's
evolving over the years and last

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quarter. 
And then we're also going to be 

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looking at the future. 
Future. 

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The guidance that Salesforce is 
giving where their position in a

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strong way and where they have 
work to do and I'm even going to

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highlight an audio clip from 
this last earnings call from 

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Marc, benioff the CEO because I 
saw quite a bit of a tone change

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from the CEO. 
So this is going to be an 

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informative episode. 
Especially if you're interested 

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in following this company, I 
think will be very informative. 

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We have a lot to jump into. 
So let's go ahead and get 

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started. 
Now, before we jump into 

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reviewing this quarter, I have 
to outline in terms of Closures 

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that. 
I am invested in Salesforce. 

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I'm a shareholder of the 
company. 

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I've outlined this company as 
one of the seven Investments. 

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One of seven Holdings in my 
story fund, which is my 

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secondary growth, centered 
portfolio, this portfolio. 

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If I blow it up here it is 
struggling. 

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It's down. 25%. 
I have some big bets in Amazon 

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and Netflix that haven't gone 
well, so far. 

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But these are long-term 
compounding Investments. 

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I'm not judging them based off 
of a one or two-year timeline. 

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I think they'll continue to do 
well, One of the companies that 

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I've invested in that I've 
invested in from the beginning 

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of this portfolio. 
Is Salesforce, why did I invest 

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in Salesforce? 
Because I've worked with this 

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product before, I've worked with
this company, they have a 

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Stranglehold on the businesses 
that use their application. 

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By that, I mean, business is 
pick out what type of Enterprise

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solution they want to go with to
manage their sales and leads and

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customer service billing and all
of that stuff once they 

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Implement that into their 
business, once they As part of 

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their workflow, it becomes 
ingrained into the company. 

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It's like they're they're the 
veins that just transfer the 

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blood throughout the body, it 
becomes a part of them and to 

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unroot it is very difficult to 
move to something else has a 

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huge undertaking. 
So as businesses adopt 

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Salesforce into their workflow, 
they're stuck and less, they 

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want to go through the process 
of trying to merge over to 

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something different, which is a 
very difficult process. 

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That gives Salesforce. 
Residual clients that use their 

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software for years and years. 
And I think even decades that 

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makes it. 
So that when their customers 

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grow and they hire more 
employees, they have more seats 

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and user licenses, Salesforce 
grows with it. 

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And then on top of that, 
Salesforce has become a little 

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bit of a mini Microsoft, buying 
up. 

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Different companies like slack, 
like a mule soft like Tableau 

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and they add that as part of 
their offering. 

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They bundle it similar to how 
Microsoft has done they, follow 

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their same. 
Strategy, which It ultimately 

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leads to pretty good results. 
So the thesis on Salesforce is a

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very wide moat company that will
have a lot of future growth, 

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very sticky customers that have 
a very difficult time moving 

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from them. 
And then on top of that, there 

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is other additional elements of 
a moat where there's an entire 

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App Market on it, which is 
difficult to compete with, as 

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well. 
They just have a lot of 

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advantages, some terms of the 
actual company, the software, 

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the moat, the compounding going 
forward. 

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I think we We have a strong 
company here one that I want to 

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have an interest in and the 
problems with Salesforce are 

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ones that I consider to be 
solvable temporary. 

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I've made critical videos ones 
where I've criticized, the 

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relationship that Salesforce has
with celebrities Salesforce is 

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pink. 
Matthew McConaughey reported 10 

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million per year for Creative 
help despite laying off 8,000 

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employees. 
This is, you know, 10 million a 

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year is not a big deal for 
company that revenues billions 

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of dollars. 
But it's more than the message 

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that they're sending her their 
attitude towards controlling 

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costs. 
This shows a Cavalier uncaring 

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attitude towards controlling 
costs. 

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Obviously they don't need to be 
paying Matthew McConaughey, this

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much money. 
So this type of news has plagued

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Salesforce. 
It's put a bad image on Marc. 

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Benioff it shows them as being 
careless with the money that 

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he's using the way that he's 
investing, and everything is 

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being driven for top-line growth
and not profitability. 80 of the

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company. 
So there you have my investment 

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thesis. 
There you have some of the 

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problems plaguing Salesforce. 
Now let's go ahead and jump into

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the actual numbers and see 
what's happened. 

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Because not many things cause a 
stock to go up 12% after hours. 

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But here we see, only call trim 
that the stock is up. 12% after 

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hours and a note saying it's 
because of this earnings report.

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So let's go ahead and look at 
what happened. 

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We have the latest numbers in 
here and just a side note, if 

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you're confused of what this 
software is, it's called qual 

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trim.com. 
It is included as part of the 

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page. 
Around. 

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If you join it today to try it 
out, you will not be charged. 

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You'll get charged in a month 
from now the beginning of next 

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month. 
So you have an entire month to 

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free. 
Trial it and as well as you get 

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access to the Discord Community,
all the exclusive videos, 

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everything else, it's all all 
included. 

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There's no separate charges for 
any of that. 

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So try it out if you haven't. 
But let's go ahead and take a 

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look at these numbers here. 
First of all, let's go ahead. 

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Look at the prices sales force. 
It's gone up today. 

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Obviously we can see what's 
happened here. 

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Year-to-date it Actually up 38%.
So it's on a very good run this 

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year. 
Like a lot of other software 

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companies they're having a 
little bit of a comeback but we 

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zoom out a little bit more. 
Two years Salesforce is creating

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at one point above 300 dollars 
per share. 

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It got ahead of itself there and
it's come down a lot. 

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Since then down nine percent 
over the past year being above 

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300 dollars per share. 
And currently its at 186 so 

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still over $120 down from its 
all-time high. 

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Now, let's go ahead and take a 
look at what happened. 

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This last quarter, and we have 
the latest numbers in here. 

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The first thing that we'll look 
at, is the revenue growth of the

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company. 
The revenue last quarter was 

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eight point three, eight 
billion, which is up, 14 percent

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year over year, they say, on a 
constant currency basis, that's 

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up 17%. 
So if you took out foreign 

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exchange issues, they actually 
grew Revenue 17% when you factor

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in currency exchange, they grew 
14% very fast revenue and, you 

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know, people criticize, These 
companies have Revenue growth, 

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slowed down for a quarter or 
two, but this shows a pretty 

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good history. 
You're looking at a strong 

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company here. 
Try to look up different charts 

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on qual, trim of any company, 
you name it type in any of them 

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and see how many companies grow 
Revenue. 

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This many quarters this 
consistently for this many 

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years. 
There is not many of them. 

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Not many in the entire world 
that is able to do that 

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Salesforce has a unique way of 
being able to grow Revenue. 

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The Ebola last quarter was 1 
billion dollars. 

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So that looks in line with the 
past for nothing special. 

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There we get to, of course, my 
favorite chart here, I think the

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most meaningful one, which is 
the free cash flow chart. 

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Now last quarter was very 
strong, two point five, seven 

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billion dollars in free cash 
flow. 

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We look at this one, two, three,
four quarters ago and it was 1.8

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billion, so the free cash flow 
year-over-year. 

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The same quarter 1.8 15 billion 
to two point five seven billion.

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So, Seven percent increase in 
the amount of free cash flow 

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quarter over quarter or year 
over year. 

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The same quarter, very strong. 
This is a strong quarter with 

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both the revenue growth and the 
free cash flow growth. 

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Now, the thing that plagues 
these companies software 

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companies where you have to have
a lot of Highly talented 

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individuals that have a skill 
set, that's pretty unique, which

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is building these applications. 
They demand a lot of 

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compensation and these companies
like to pay them in stock when 

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we flip over to Doc based 
compensation, qual, trim, 

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outlines it hair and purple. 
So at the orange and purple, you

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can easily contrast. 
How much is free cash flow and 

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then how much stock based 
compensation? 

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They issued the same quarter. 
What we see here is a trend of 

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the stock based compensation 
going up a little bit about as 

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much as a free cash flow and 
then it really spiked up in 

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2021. 
And then, look, what happened. 

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It's actually down from where it
was three quarters ago. 

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If we look at this, we can Zoom 
in. 

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Maybe you can see this a little 
bit better here. 

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Maybe not. 
We gotta zoom and take a look at

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it here. 
Maybe I'll just zoom in on the 

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video right here. 
Can you see how it's going down 

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ever? 
So slightly the past. 

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Three quarters consecutively. 
It's gone down. 

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I take that as a positive thing 
because the free cash flow grew 

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26 percent year over year and 
the stock based composite 

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actually going down. 
Meaning that they're growing, 

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the company without growing the 
expenses that is a positive 

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thing. 
That's obviously What's leading 

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to their margin expansion? 
And they did have dramatic 

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margin expansion in this 
quarter. 

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So right there, that is 
scalability. 

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That's what we want to see in 
software company's Revenue going

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up with cost maintaining or 
going down or at least going up 

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at a slower rate. 
What we do not want to see our 

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companies where the stock base 
Compass is outpacing, the free 

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cash flow and it's outpacing the
revenue. 

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That's what's plagued. 
A lot of companies like Google 

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and meta their stock based 
composite going up like Crazy. 

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Even at a faster rate than their
profitability. 

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So right here, we see a company 
that at least right now, it 

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looks like they're actually 
focusing on their costs. 

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It's really good to see. 
I think this is really a 

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material positive thing to see. 
If we look at the kegger, a both

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of them, the compound annual 
growth rate, we have the stock 

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based compost, past 10 years, 
growing at 27% and the free cash

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flow growing at 29%, so both of 
them are going up in tandem, but

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we Have these stock-based 
compensation up at a slightly 

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lower speed, that's that's a 
good thing again. 

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Profitability and revenue 
growing at a faster paced and 

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expenses. 
Very good thing. 

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After that we can take a look 
the the cash balance. 

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I don't think the earnings per 
share is as important right now 

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they have all these non-gaap 
metrics that they go by because 

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of one-time cost. 
But if we look at the the cash 

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balance here, I want to take a 
look at this as well. 

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This shows the health of the 
company. 

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The company has loads of 
long-term debt. 

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And they don't have a lot of 
cash that can put them into dire

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00:11:31,200 --> 00:11:32,900
situations. 
If their debt matures at the 

230
00:11:32,908 --> 00:11:36,000
same time. 
When I look at Salesforce, I can

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break it down and just look at 
the debt. 

232
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The debt outstanding in 
isolation is quite High, 8.8 

233
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billion, but once you factor in 
cash, they have right now. 12.5 

234
00:11:46,500 --> 00:11:50,200
billion dollars in cash. 
They are fine, they have more 

235
00:11:50,200 --> 00:11:53,800
cash than long-term debt you 
factor in capital leases which 

236
00:11:53,800 --> 00:11:56,300
is renting out of there. 
Very nice Office Buildings. 

237
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They still have more cash than 
In both their long-term debt and

238
00:12:00,300 --> 00:12:03,700
their Capital leases. 
This company in terms of its 

239
00:12:03,700 --> 00:12:05,500
cash, balance is incredibly 
strong. 

240
00:12:05,600 --> 00:12:09,400
They have no leverage their like
Costco in this regard they're 

241
00:12:09,400 --> 00:12:12,500
not putting the company at 
Jeopardy by taking out, high 

242
00:12:12,500 --> 00:12:15,800
amounts of Leverage and you have
to give them credit a lot of 

243
00:12:15,800 --> 00:12:18,200
companies. 
They do a thing where they take 

244
00:12:18,200 --> 00:12:21,000
out debt to buy back their own 
shares, they take out more and 

245
00:12:21,000 --> 00:12:22,400
more debt to buy back more 
shares. 

246
00:12:22,900 --> 00:12:25,600
So they'll do BuyBacks but 
they're all debt funded and 

247
00:12:25,600 --> 00:12:28,300
their debt will go up far past 
their cash balance. 

248
00:12:28,600 --> 00:12:31,800
Where they'll ever up more and 
more and more and more until the

249
00:12:31,800 --> 00:12:35,500
company is at 5 or 6 times, 
their leverage of their ibadah. 

250
00:12:36,200 --> 00:12:38,900
And although that can be 
rewarding to the shareholder 

251
00:12:39,400 --> 00:12:41,800
when you do that, it's only for 
a limited amount of time. 

252
00:12:42,000 --> 00:12:44,800
Salesforce isn't doing that. 
They're not Levering up to do 

253
00:12:44,800 --> 00:12:47,400
BuyBacks, they're keeping their 
balance sheet, very strong. 

254
00:12:47,400 --> 00:12:50,700
Now just a pause halfway through
this checkup so far, I think 

255
00:12:50,700 --> 00:12:53,100
things look pretty good. 
The revenue is growing at a very

256
00:12:53,100 --> 00:12:55,500
fast pace, 17 percent 
year-over-year. 

257
00:12:55,800 --> 00:12:58,000
The free cash flow is growing 
even faster. 

258
00:12:58,300 --> 00:13:02,600
It Grew over 20% year-over-year 
with the stock based compound 

259
00:13:02,600 --> 00:13:04,400
down, that's like an added 
bonus. 

260
00:13:04,700 --> 00:13:07,200
So expenses are going down their
revenues growing. 

261
00:13:07,400 --> 00:13:09,000
The real free cash flows are 
growing. 

262
00:13:09,300 --> 00:13:11,500
And then on top of that, the 
balance sheet, looks very strong

263
00:13:11,500 --> 00:13:14,500
more cash than debt and capital 
leases. 

264
00:13:15,000 --> 00:13:18,100
I have to say so far. 
Mid checkup will continue to 

265
00:13:18,100 --> 00:13:21,000
look at it but mid checkup, I I 
like what I see. 

266
00:13:21,000 --> 00:13:22,900
I think things look really, 
really good. 

267
00:13:23,000 --> 00:13:26,200
Now, of course, the next thing 
is the dividend does Salesforce 

268
00:13:26,200 --> 00:13:28,400
pay a dividend, obviously not I 
can blow up the graph. 

269
00:13:28,600 --> 00:13:31,600
Here we have nothing in their 
history and this is something 

270
00:13:31,600 --> 00:13:34,300
that I do like to see in 
companies is when they pay a 

271
00:13:34,300 --> 00:13:37,600
dividend companies that pay 
long-standing growing. 

272
00:13:37,600 --> 00:13:39,700
Dividends are typically decent 
companies. 

273
00:13:39,700 --> 00:13:43,100
You can't grow a dividend over a
20-year period without growing 

274
00:13:43,100 --> 00:13:46,600
your cash flows. 
So not paying a dividend is 

275
00:13:46,600 --> 00:13:50,100
something that's I think it's a 
little bit of a - I think it's 

276
00:13:50,100 --> 00:13:53,200
something that I don't like to 
see but it's one of two ways. 

277
00:13:53,200 --> 00:13:56,600
A company can return Capital, 
the company doesn't pay a 

278
00:13:56,600 --> 00:14:00,100
dividend typically they'll 
Return Capital back to the 

279
00:14:00,100 --> 00:14:02,900
shareholder in the form of share
BuyBacks. 

280
00:14:03,300 --> 00:14:06,000
And that's where we look at the 
shares outstanding chart. 

281
00:14:06,400 --> 00:14:09,200
Here's something that I would 
give us a warning when you're 

282
00:14:09,200 --> 00:14:11,600
trying to look at the amount of 
share BuyBacks. 

283
00:14:11,600 --> 00:14:16,400
A company does do not take the 
number at face value they'll say

284
00:14:16,400 --> 00:14:20,300
that we bought back to billion 
dollars of shares but what they 

285
00:14:20,300 --> 00:14:23,900
won't mention is that we issued 
two billion dollars of shares if

286
00:14:23,900 --> 00:14:26,900
a company issues two billion 
dollars of shares and then they 

287
00:14:26,900 --> 00:14:30,500
buy back to billion dollars of 
Where's the share count Remains 

288
00:14:30,500 --> 00:14:32,600
the Same. 
You haven't gained any Equity, 

289
00:14:32,600 --> 00:14:36,200
any interest in the business. 
It's flat that doesn't help you.

290
00:14:36,200 --> 00:14:39,400
That's not really returning 
Capital, back to you the way to 

291
00:14:39,400 --> 00:14:42,800
actually determine whether or 
not your interest in the company

292
00:14:42,800 --> 00:14:46,900
is increasing is looking at the 
shares outstanding chart. 

293
00:14:47,400 --> 00:14:52,000
If the shares outstanding are 
going up over time, you're 

294
00:14:52,000 --> 00:14:56,200
losing interest in the business,
you are being diluted if they're

295
00:14:56,200 --> 00:14:59,900
going down over time. 
You are gaining interest in the 

296
00:14:59,900 --> 00:15:02,900
company. 
In this case, for the entire 

297
00:15:02,900 --> 00:15:06,500
history of Salesforce, they've 
issued shares and issued shares 

298
00:15:06,500 --> 00:15:09,700
and sometimes they've done even 
a bigger issuance to buy things 

299
00:15:09,700 --> 00:15:12,600
like slack. 
So little little jumps here, 

300
00:15:12,600 --> 00:15:16,000
quarter over quarter and the 
shareholder is continually being

301
00:15:16,000 --> 00:15:18,400
diluted. 
Now, if we look at last quarter 

302
00:15:18,400 --> 00:15:21,900
and I know this is difficult to 
see last quarter, the actual 

303
00:15:21,900 --> 00:15:25,400
share count went down which 
means that Salesforce actually 

304
00:15:25,400 --> 00:15:29,700
did effective BuyBacks. 
They bought back more stock than

305
00:15:29,700 --> 00:15:31,600
they issued. 
It went down 

306
00:15:31,600 --> 00:15:35,400
quarter-over-quarter by minus 
one point three percent. 

307
00:15:35,700 --> 00:15:37,600
So they actually reduce the 
share count one point three 

308
00:15:37,600 --> 00:15:41,500
percent which is around one 
point eight billion dollars 

309
00:15:41,500 --> 00:15:43,200
worth of actual affected by 
backs. 

310
00:15:43,700 --> 00:15:45,600
It's pretty good for single 
quarter. 

311
00:15:45,700 --> 00:15:47,700
Buying back almost two billion 
dollars worth of shares. 

312
00:15:48,600 --> 00:15:51,400
I like it. 
I like seeing directionally that

313
00:15:51,400 --> 00:15:54,100
now, the chairs aren't going up 
and this is the first quarter, 

314
00:15:54,100 --> 00:15:56,900
this has ever happened. 
Sure, count went down. 

315
00:15:56,900 --> 00:16:00,000
There are now returning. 
Capital back to the shareholder.

316
00:16:00,600 --> 00:16:03,200
Very interesting to see the 
company, finally, do this. 

317
00:16:04,200 --> 00:16:05,600
The last things that we can look
at here. 

318
00:16:06,400 --> 00:16:10,300
The ratios of the company, this 
just looks awful, like we have 

319
00:16:10,300 --> 00:16:13,000
the operating ratio. 
It's basically flat hair. 

320
00:16:13,200 --> 00:16:16,500
They have a bunch of adjusted 
metrics they use profitability 

321
00:16:16,500 --> 00:16:19,600
is at 5%. 
So very small profit margins 

322
00:16:19,600 --> 00:16:21,200
right now, but they are 
increasing. 

323
00:16:21,800 --> 00:16:24,400
And then finally, we have the 
expenses chart here. 

324
00:16:24,700 --> 00:16:28,100
I can look at this quarter over 
quarter and this is Thing, 

325
00:16:28,100 --> 00:16:30,700
that's very interesting to see, 
I look at the expenses here, 

326
00:16:31,000 --> 00:16:34,700
what do we noticed over the past
year, the total expenses of 

327
00:16:34,700 --> 00:16:38,300
running Salesforce are going 
down as the company's growing 

328
00:16:38,300 --> 00:16:41,200
double-digit revenues. 
The expenses are decreasing 

329
00:16:41,200 --> 00:16:43,900
quarter-over-quarter. 
This is something I think is 

330
00:16:43,908 --> 00:16:46,200
very positive. 
Now if we actually have a break 

331
00:16:46,200 --> 00:16:49,600
down here, the expenses are 
going down in research and 

332
00:16:49,600 --> 00:16:52,400
development, General and 
administrative what they're 

333
00:16:52,400 --> 00:16:55,400
keeping pretty flat is sales and
marketing because that is a 

334
00:16:55,400 --> 00:16:57,800
growth driver of this company 
they have to get on. 

335
00:16:58,000 --> 00:16:59,400
Phones. 
They have to do the corporate 

336
00:16:59,400 --> 00:17:01,300
sales funnel. 
That's how they actually grow 

337
00:17:01,300 --> 00:17:03,100
the revenue. 
So this is an important part of 

338
00:17:03,100 --> 00:17:05,400
their expense. 
The general administrative 

339
00:17:05,400 --> 00:17:07,900
research and development. 
I'm not sure exactly what 

340
00:17:07,900 --> 00:17:10,300
they're doing there, but these 
numbers are going down. 

341
00:17:10,400 --> 00:17:12,900
When I look at this quarter 
overall, I like it, I don't know

342
00:17:12,900 --> 00:17:15,500
how people couldn't like this 
quarter, the revenue is growing 

343
00:17:15,500 --> 00:17:19,099
at double digits. 
The free cash flow grew at 20% 

344
00:17:19,099 --> 00:17:22,300
plus year over year with 
stock-based compensation, down 

345
00:17:22,500 --> 00:17:25,900
the balance sheet, looks 
fantastic shares outstanding are

346
00:17:25,900 --> 00:17:27,500
going down at a pretty decent 
pace. 

347
00:17:27,500 --> 00:17:30,900
Now, Now the company's ratios 
are improving, their margins, 

348
00:17:30,900 --> 00:17:34,100
have improved a lot, just over 
the past year and the expenses 

349
00:17:34,100 --> 00:17:36,900
are going down there, going 
down, as the company's growing, 

350
00:17:37,200 --> 00:17:39,200
what's not to like with this 
quarter. 

351
00:17:39,200 --> 00:17:42,800
I think overall, it's deserved 
that the stock went up 10%. 

352
00:17:42,800 --> 00:17:45,300
I don't think that that's an 
over reaction from the market. 

353
00:17:45,700 --> 00:17:49,200
Now obviously, something changed
in the past, 90 days. 

354
00:17:49,500 --> 00:17:51,700
I think it may have had 
something to do with the three 

355
00:17:51,700 --> 00:17:55,000
different activist investors 
involved in the stock, but the 

356
00:17:55,000 --> 00:17:57,000
attitudes were different. 
And the way the company is being

357
00:17:57,000 --> 00:17:59,900
managed, Be a little bit 
different when I was listening 

358
00:17:59,900 --> 00:18:03,500
to the earnings call, one part 
of the stuck out to me, it was 

359
00:18:03,500 --> 00:18:07,100
Marc benioff and it was the 
first question that he answered 

360
00:18:07,100 --> 00:18:09,700
on the call. 
He showed, what is his main 

361
00:18:09,700 --> 00:18:12,500
focus right now? 
Let me go ahead and play this 

362
00:18:12,500 --> 00:18:15,500
clip because I think I think 
you'll find it interesting. 

363
00:18:15,700 --> 00:18:17,600
There's basically two motions 
here. 

364
00:18:17,600 --> 00:18:21,500
One is just like we just heard 
Brian has to continue to deliver

365
00:18:21,500 --> 00:18:24,200
the a CV. 
You know, that's why we're 

366
00:18:24,200 --> 00:18:26,800
keeping a lot of stability in 
our sales organization right 

367
00:18:26,800 --> 00:18:29,100
now. 
Painting the productivity 

368
00:18:29,300 --> 00:18:33,400
deliver the year and a CV. 
This is really critical for us. 

369
00:18:33,400 --> 00:18:36,000
That's motion. 
Number one, motion number two. 

370
00:18:36,000 --> 00:18:41,400
Is also at the same time, 
profitability, profitability is,

371
00:18:41,400 --> 00:18:44,200
are truly our number one 
strategy, and that's my number 

372
00:18:44,200 --> 00:18:46,500
one strategy. 
That's what I've been focused on

373
00:18:46,500 --> 00:18:50,700
with the profitability, is now 
his number one strategy, 

374
00:18:51,000 --> 00:18:54,300
mentions profitability over and 
over and over again, management 

375
00:18:54,300 --> 00:18:56,500
team. 
That is the number one thing we 

376
00:18:56,500 --> 00:18:59,100
talked about at the start. 
Of every meeting we have in this

377
00:18:59,100 --> 00:19:03,700
company and that is why we are 
able to deliver that in 90 days,

378
00:19:03,700 --> 00:19:07,500
you all know that we've never 
had an efficiency focus in the 

379
00:19:07,500 --> 00:19:12,100
company before because we've had
24, incredible years of where 

380
00:19:12,100 --> 00:19:13,400
we've had to just grow. 
Grow. 

381
00:19:13,400 --> 00:19:16,800
Grow there have been moments 
where we had to pull back 01:02 

382
00:19:17,300 --> 00:19:19,800
bad recession would to pull back
08-09. 

383
00:19:19,900 --> 00:19:23,500
We had to pull back and 
reassess, we're kind of looking 

384
00:19:23,500 --> 00:19:26,500
at this moment as hey, we can 
reassess. 

385
00:19:26,900 --> 00:19:30,300
This is a Say incredible moment,
we can deliver great results. 

386
00:19:30,300 --> 00:19:32,600
You saw, we're delivering more 
than 10 percent growth Revenue 

387
00:19:32,600 --> 00:19:36,300
growth, but we want to deliver 
this more than 27 percent margin

388
00:19:36,300 --> 00:19:39,900
growth for the year and not 
growth, but tarp Margaret 

389
00:19:40,200 --> 00:19:43,000
emergent Target and we're going 
to obviously the growth rate is 

390
00:19:43,000 --> 00:19:45,500
actually much higher. 
Now, my main takeaway from this 

391
00:19:45,500 --> 00:19:48,400
and listening to him on the call
is that he got the memo very 

392
00:19:48,400 --> 00:19:50,700
clearly. 
He is responding to shareholders

393
00:19:50,700 --> 00:19:53,200
once and request. 
He has a lot of activist 

394
00:19:53,200 --> 00:19:55,900
investors involved in the stock,
the company's taken a lot of 

395
00:19:55,900 --> 00:19:57,700
flack recently, a lot of bad 
press. 

396
00:19:58,000 --> 00:20:01,300
Marc benioff sees that, and he's
saying that now we're focused on

397
00:20:01,300 --> 00:20:03,900
profitability, we're going to 
serve the shareholders, and I 

398
00:20:03,908 --> 00:20:06,200
think that this is a good 
response. 

399
00:20:06,500 --> 00:20:09,100
Now, you might just say that 
he's a smooth, talk and CEO, 

400
00:20:09,100 --> 00:20:10,900
obviously. 
He's very good at communication.

401
00:20:11,100 --> 00:20:14,400
So, we might just be saying this
to appease shareholders true, 

402
00:20:14,400 --> 00:20:17,200
but the numbers are showing that
he's actually doing what he's 

403
00:20:17,200 --> 00:20:18,700
saying. 
They are focused on 

404
00:20:18,700 --> 00:20:22,700
profitability, all the expenses 
are coming down all the the cost

405
00:20:22,700 --> 00:20:24,700
of the company in the margins 
are improving. 

406
00:20:25,100 --> 00:20:28,400
So I believe him, I think he has
focused on Ability. 

407
00:20:28,600 --> 00:20:31,200
And as far as I can tell, I 
think that sells horses on a 

408
00:20:31,300 --> 00:20:33,600
very good track now, I think 
they're headed in the right 

409
00:20:33,600 --> 00:20:35,500
direction. 
Now, in terms of the future 

410
00:20:35,500 --> 00:20:39,100
sales force, the company also 
gave guidance and almost every 

411
00:20:39,100 --> 00:20:42,100
metric was above what the 
analysts were predicting, 

412
00:20:42,400 --> 00:20:45,000
they're predicting strong, 
Revenue growth, very strong 

413
00:20:45,000 --> 00:20:47,200
margin expansion. 
That's the main one, which 

414
00:20:47,200 --> 00:20:51,200
again, is that focus on profits.
So, they gave this guidance is 

415
00:20:51,200 --> 00:20:53,100
stronger than what the analysts 
were expecting. 

416
00:20:53,200 --> 00:20:55,800
There's a bigger, focus on 
marginal Improvement, 

417
00:20:55,800 --> 00:20:58,700
restructuring the company 
cutting costs, Cutting cutting 

418
00:20:58,700 --> 00:21:01,700
off excess. 
This is all stuff that I like to

419
00:21:01,700 --> 00:21:04,000
see overall. 
When I look at Salesforce, 

420
00:21:04,000 --> 00:21:06,600
there's a lot of opinions on 
this company, but I still think 

421
00:21:06,600 --> 00:21:10,100
the core aspects of the company 
remains strong, that is the mode

422
00:21:10,100 --> 00:21:13,500
of the company, the pricing 
power, the switching costs and 

423
00:21:13,500 --> 00:21:17,200
it's huge franchise of software.
I think the biggest issues have 

424
00:21:17,200 --> 00:21:20,900
been governance related, 
wasteful spending, and an era of

425
00:21:20,900 --> 00:21:25,600
low interest rates as Marc 
benioff pivots his direction 

426
00:21:25,700 --> 00:21:28,100
from being a company. 
That's only obsessed with Top 

427
00:21:28,100 --> 00:21:31,200
line, revenue growth and 
Kingdom, building with acquiring

428
00:21:31,200 --> 00:21:33,500
more and more assets to now, one
that's growing. 

429
00:21:33,500 --> 00:21:36,500
Its core products and 
profitability margins, I think 

430
00:21:36,500 --> 00:21:39,900
the company could outperform 
over the next couple of years. 

431
00:21:40,300 --> 00:21:43,200
So, my opinion, as far as I'm 
concerned with my holding, I 

432
00:21:43,200 --> 00:21:46,000
remain bullish on Salesforce. 
I'm going to continue to hold 

433
00:21:46,000 --> 00:21:48,700
the company. 
I think it may outperform. 

434
00:21:48,700 --> 00:21:50,600
I really do. 
But I'll continue to track it 

435
00:21:50,600 --> 00:21:53,000
and give my thoughts so far. 
I like the direction. 

436
00:21:53,200 --> 00:21:29,700
See you in the next one. 
Top line, revenue growth and 

437
00:21:29,700 --> 00:21:33,000
Kingdom, building with acquiring
more and more assets to now, one

438
00:21:33,000 --> 00:21:34,500
that's growing. 
Its core products and 

439
00:21:34,500 --> 00:21:38,300
profitability margins, I think 
the company could outperform 

440
00:21:38,300 --> 00:21:41,600
over the next couple of years. 
So, my opinion, as far as I'm 

441
00:21:41,600 --> 00:21:44,700
concerned with my holding, I 
remain bullish on Salesforce. 

442
00:21:44,700 --> 00:21:46,600
I'm going to continue to hold 
the company. 

443
00:21:47,500 --> 00:21:49,400
I think it may outperform. 
I really do. 

444
00:21:49,400 --> 00:21:52,200
But I'll continue to track it 
and give my thoughts so far. 

445
00:21:52,200 --> 00:21:54,000
I like the direction. 
See you in the next one.