Question Brad Zelnick: I mean, this is a pretty significant price tag. You referenced MuleSoft
at about $6.5 billion versus the $28 billion. I mean, were talking about a whole different scale. The stakes are higher. What can you do differently versus what they were able to do on their own and how is this asset really better
together?
Answer Mark J. Hawkins: Yeah. Yeah. I think theres so many parallels with MuleSoft. Id grant you the price difference
for sure. And obviously, this is a significant amount of money even just it just is. And obviously, were excited about it. We are willing to place bets on the future on behalf of our customers to be successful.
So from my standpoint, I think the if we want to realize the full value of where we think this pencils out is to have a partnership; its going to
be hard to do that and fully bring the full power of our enterprise software distribution capability to take that business to a different spot like we have with other companies. Okay. And to do that and be able to achieve all the value we can for
our shareholders without owning it, number one.
Number two in terms of what we want to do from a product standpoint, again, Im going to leave that
to Marc and Bret to talk about. I dont want to get ahead of people in terms of more detailed product vision. But we have very distinct thoughts about how we can add unique value and create a unique asset. And by the way, world-class assets
only trade once. Theyre gone. This is the best asset in the collaboration communication space. And we look forward to talking about that story as judged by the customer, not about marketecture (19:06), not about people bundling stuff and
adding it on for free or whatever about what is the customer want and how can we help them. And how can we Ive always felt that if you have an imaginative understanding of the customer need, thats where magic happens. We listen to
them. We have imaginative understanding what they need and then we go deliver it. And thats hard to do through a partnership alone. Owning it is a different story. And I think its a big investment. Were a big company now.
Were substantially bigger than we were with MuleSoft.
I will end this point by saying with conviction. Weve taken and I want to bring
this is an important point, Brad. In 2014 we made 8.9% operating margin. I said were going to make more. Last quarter we just reported, it was 19% plus; the prior quarter, it was over 20%. Weve taken a company that is guided at roughly
$21 billion to finish. But all the way along that what have we done? Weve taken assets that are, what, theyve been dilutive, a lot of them have lost money, a lot of them are getting started. And what have we done? Weve taken
them and weve made them better and we still raise the full tide of the company, as we invest in what the customer wants and we build out a position in a market thats the biggest TAM, its one of the most attractive TAMs in
enterprise software where we have the pole position and were competitively separating.
I mean, look at the Gartner data. Its not my data.
What do you think happened last quarter? What do you think our guide implies? What do you think our guide next year implies? 21 years of not missing a quarter of gaining and progressing and yet we have tons of room to run. To do a generational
company opportunity, you have to be both organically innovate and inorganically innovate, and then you have to execute. And well let the math talk about the execution. Can we be better? Of course. But were coming from a position of
strength with this. We are super excited to invest on behalf of our customer. And we see this with a lot of optionality of which Ill leave it to Marc and Bret to talk about how far they want to go there.
Question Brad Zelnick: And thats how I think about my own team and my own organization. But maybe if I could come back to Slack in the
process, I think that was when Id already asked you before about why not partner and why acquire. But I think the other question that investors are grappling with is why now.
Answer Mark J. Hawkins: Sure.
Question
Brad Zelnick: Especially in light of Marcs comments in August. I mean, that was only a few months ago...
Answer Mark J. Hawkins:
Yeah.
Question Brad Zelnick: What was so compelling as were still integrating and digesting and theres a lot of greatness
to come with Tableau, like why was now the time? Valuations seem very rich by just about any lens I look at them. How would you answer that?
Answer
Mark J. Hawkins: Heres what I would say to you. You know whats kind of interesting is when people think of M&A, they can have a great strategy, they can have a great vision in a way out. They can sequence in their mind
perfectly what they want to do, but the world doesnt actually work that way. If theres one thing weve learned in COVID is how fast the world can change. For sure, weve all learned that this year, if we didnt already
know it. Keep in mind when this came together, I dont I think its clear, but hopefully Ill be clear with everybody. Bret Taylor, whos an amazing executive, has had a longstanding north of a decade, probably close to
two decade relationship with Stewart Butterfield. They are friends. Theyve known each other. Theyve grown up as some of the most successful executives in Silicon Valley and thats saying something. And when they came together with
an idea, unique assets, the best assets in the world, trade when they trade, they come up when they come up. They come up when there is the possibility for something to happen. And if you want, that trade doesnt happen twice. You dont
get to control like, okay, look, this is my plan. Its like my its kind of like my calendar, Brad. I think I know what Im doing for the day. But guess what, I deal with lots of different incoming every single hour, and
Im sure you do, too.
Question Brad Zelnick: Im so glad you and I are both here.
Answer Mark J. Hawkins: Yeah, exactly, Brad. Exactly. And so what I would say to you is that unique opportunity came up. That vision was
presented to Marc. Marc is like, oh my God, like, that is amazing and then things started to happen. And so remember, what Marc said. Marc said what he said. And they say, hey, I have to keep a beginners mind also at the very end. And I
keep that, look, were driven to make sure that were doing something thats going to create a generational company, take care of our customers and win values drive value. And it turns out, over long periods of time, theres been
a lot of value created. I understand. And I feel accountable for every quarter. But its the short-term and the long-term that one has to focus on. So thats what I would say. Therell be a proxy thatll show all the detail of
that you can imagine. It would not be itd be best to just basically let that show the tick tock of it. But think about two amazing executives coming together, an opportunity surfaces for an asset thats going to trade and boom. We
seize the moment. Thats what I would say.
Question Brad Zelnick: Might we see something in there that would suggest that this was
either defensive or competitive and why not have a typical go shop provision in the merger agreement?
Answer Mark J. Hawkins: Heres
what I would say. If we abstract away from the short term, in the end, you know whats going to determine the success of this great acquisition. Its going to be the customer, its going to be the reception, its going to be our
creativity to show optionality that maybe everybodys now thinking about. And like I say, theres two big camps of opportunity to really have this pencil out in a big way. And were confident its going to. And we come from a
decision of (33:23) experience on this. And I would say, Brad, Ill be the first one to say theres a test at the end, there always is, right?
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