Salesforce (NYSE: CRM), the global leader in CRM, today
announced results for its first quarter fiscal 2024 ended April 30,
2023.
- First Quarter Revenue of $8.25 Billion, up 11%
Year-Over-Year ("Y/Y"), up 13% Constant Currency ("CC")
- First Quarter GAAP Operating Margin of 5.0% and Non-GAAP
Operating Margin of 27.6%
- Current Remaining Performance Obligation of $24.1 Billion,
up 12% Y/Y, 12% CC
- First Quarter GAAP Diluted Earnings per Share ("EPS") of
$0.20 and Non-GAAP Diluted EPS of $1.69
- Returned $2.1 Billion in First Quarter to Stockholders in
the Form of Share Repurchases
- Initiates Second Quarter FY24 Revenue Guidance of $8.51
Billion to $8.53 Billion, up ~10% Y/Y
- Reiterates Full Year FY24 Revenue Guidance of $34.5 Billion
to $34.7 Billion, up ~10% Y/Y
- Raises Full Year FY24 GAAP Operating Margin Guidance to
~11.4% and Non-GAAP Operating Margin Guidance to ~28.0%
“Salesforce significantly exceeded our non-GAAP margin target
for the quarter — up 1,000 basis points year-over-year, and we are
raising our FY24 non-GAAP operating margin guidance to a 550 basis
point increase year-over-year,” said Marc Benioff, Chair and CEO of
Salesforce. “At the same time, we are leading the next major
revolution in CRM — infusing trusted, secure generative AI across
our entire product portfolio. Salesforce's generative AI ecosystem
wields Einstein GPT, Slack GPT, and Tableau GPT, delivering trusted
power across our product portfolio. Our Salesforce GPT Trust Layer
will shield customer data, enabling productive automation and
intelligent enterprise enhancements securely.”
"Q1 represented another strong step forward as we accelerate our
transformation and profitable growth strategy,” said Amy Weaver,
President and CFO of Salesforce. “Our team delivered another
double-digit growth quarter on the top and bottom line as we help
customers increase productivity, drive efficiency, and become
AI-first companies."
Salesforce delivered the following results for its fiscal first
quarter:
Revenue: Total first quarter revenue was $8.25 billion,
an increase of 11% Y/Y, and 13% CC. Subscription and support
revenues were $7.64 billion, an increase of 11% Y/Y. Professional
services and other revenues were $0.61 billion, an increase of 9%
Y/Y.
Operating Margin: First quarter GAAP operating margin was
5.0%. First quarter non-GAAP operating margin was 27.6%.
Restructuring impacted first quarter GAAP operating margin by (860)
bps.
Earnings per Share: First quarter GAAP diluted earnings
per share was $0.20, and non-GAAP diluted EPS was $1.69. Losses on
the Company’s strategic investments negatively impacted GAAP
diluted earnings per share by $(0.11) based on a U.S. tax rate of
25% and non-GAAP diluted EPS by $(0.11) based on a non-GAAP tax
rate of 23.5%. Restructuring impacted first quarter GAAP diluted
earnings per share by (72) cents.
Cash Flow: Cash generated from operations for the first
quarter was $4.49 billion, an increase of 22% Y/Y. Free cash flow
was $4.25 billion, an increase of 21% Y/Y. Restructuring impacted
first quarter operating cash flow growth by (910) bps.
Remaining Performance Obligation: Remaining performance
obligation ended the first quarter at $46.7 billion, an increase of
11% Y/Y. Current remaining performance obligation ended at $24.1
billion, an increase of 12% Y/Y, and 12% CC.
Forward Looking Guidance
As of May 31, 2023, the Company is initiating its second quarter
GAAP and non-GAAP EPS guidance, current remaining performance
obligation growth guidance, and revenue guidance. The Company is
reiterating its full year FY24 revenue guidance and updating its
GAAP and non-GAAP EPS guidance, GAAP and non-GAAP operating margin
guidance, and operating cash flow guidance.
Our guidance assumes no change to the value of the Company's
strategic investment portfolio as it is not possible to forecast
future gains and losses. In addition, the guidance below is based
on estimated GAAP tax rates that reflect the Company’s currently
available information, and excludes forecasted discrete tax items
such as the tax effects of stock-based compensation. The GAAP tax
rates may fluctuate due to discrete tax items and related effects
in conjunction with certain provisions in the Tax Cuts and Jobs
Act, future acquisitions or other transactions.
Q2 FY24
Guidance
Full Year FY24
Guidance
Revenue
$8.51 - $8.53 Billion
$34.5 - $34.7 Billion
Y/Y Growth
~10%
~10%
FX Impact(1)
no impact
no impact
GAAP Operating Margin
N/A
~11.4%
Non-GAAP Operating Margin(2)
N/A
~28.0%
GAAP Earnings per Share(2)
$0.79 - $0.80
$2.67 - $2.69
Non-GAAP Earnings per Share(2)
$1.89 - $1.90
$7.41 - $7.43
Operating Cash Flow Growth (Y/Y)(3)
N/A
16% - 17%
Current Remaining Performance Obligation
Growth (Y/Y)
~10%
N/A
FX Impact(4)
no impact
N/A
(1)
Revenue FX impact is calculated by taking
the current period rates compared to the prior period average
rates.
(2)
Non-GAAP operating margin and non-GAAP
earnings per share are non-GAAP financial measures. Refer to the
Appendix for an explanation of non-GAAP financial measures. The
Company's shares used in computing GAAP earnings per share guidance
and Non-GAAP earnings per share guidance excludes any impact to
share count from Q2 - Q4 FY24 repurchase activity under our Share
Repurchase Program.
(3)
Operating Cash Flow Growth guidance
includes an estimated 14% - 16% headwind associated with charges
from restructuring.
(4)
Current Remaining Performance Obligation
FX impact is calculated by taking the current period rates compared
to the prior period ending rates.
The following is a reconciliation of GAAP operating margin
guidance to non-GAAP operating margin guidance for the full
year:
Full Year FY24
Guidance
GAAP operating margin(1)
~11.4%
Plus
Amortization of purchased
intangibles(2)
5.4%
Stock-based compensation expense(2)
8.0%
Restructuring(2)(3)
3.2%
Non-GAAP operating margin(1)
~28.0%
(1)
GAAP operating margin is the proportion of
GAAP income from operations as a percentage of GAAP revenue.
Non-GAAP operating margin is the proportion of non-GAAP income from
operations as a percentage of GAAP revenue.
(2)
The percentages shown above have been
calculated based on the midpoint of the low and high ends of the
revenue guidance for full year FY24.
(3)
The percentages shown above have been
calculated based on the high end of the estimated charges in
connection with our restructuring plan announced on January 4, 2023
(the "Restructuring Plan").
The following is a per share reconciliation of GAAP diluted
earnings per share to non-GAAP diluted earnings per share guidance
for the next quarter and the full year:
Fiscal 2024
Q2
FY24
GAAP diluted earnings per share
range(1)(2)
$0.79 - $0.80
$2.67 - $2.69
Plus
Amortization of purchased intangibles
$
0.48
$
1.89
Stock-based compensation expense
$
0.74
$
2.80
Restructuring(3)
$
0.13
$
1.11
Less
Income tax effects and adjustments(4)
$
(0.25
)
$
(1.06
)
Non-GAAP diluted earnings per share(2)
$1.89 - $1.90
$7.41 - $7.43
Shares used in computing basic net income
per share (millions)(5)
981
984
Shares used in computing diluted net
income per share (millions)(5)
987
991
(1)
The Company's GAAP tax provision is
expected to be approximately 30% for the three months ended July
31, 2023, and approximately 31% for the year ended January 31,
2024. The GAAP tax rates may fluctuate due to discrete tax items
and related effects in conjunction with certain provisions in the
Tax Cuts and Jobs Act, future acquisitions or other
transactions.
(2)
The Company's projected GAAP and Non-GAAP
diluted earnings per share assumes no change to the value of our
strategic investment portfolio as it is not possible to forecast
future gains and losses. The impact of future gains or losses from
the company’s strategic investment portfolio could be material.
(3)
The estimated impact to GAAP diluted
earnings per share has been calculated based on the high end of the
estimated charges in connection with the Restructuring Plan.
(4)
The Company’s Non-GAAP tax provision uses
a long-term projected tax rate of 23.5%, which reflects currently
available information and could be subject to change.
(5)
The Company's shares used in computing
GAAP earnings per share guidance and Non-GAAP earnings per share
guidance excludes any impact to share count from Q2 - Q4 FY24
repurchase activity under our share repurchase program.
For additional information regarding non-GAAP financial measures
see the reconciliation of results and related explanations
below.
Management will provide further commentary around these guidance
assumptions on its earnings call.
Product Releases and Enhancements
Three times a year Salesforce delivers new product releases,
services, or enhancements to current products and services. These
releases are a result of significant research and development
investments made over multiple years, designed to help customers
drive cost savings, boost efficiency, and build trust.
To view our major product releases and other highlights as part
of the Spring'23 Product Release, visit:
www.salesforce.com/products/innovation/spring-23-release/
Quarterly Conference Call
Salesforce plans to host a conference call at 2:00 p.m. (PT) /
5:00 p.m. (ET) to discuss its financial results with the investment
community. A live webcast and replay details of the event will be
available on the Salesforce Investor Relations website at
www.salesforce.com/investor.
About Salesforce
Salesforce empowers companies of every size and industry to
connect with their customers in a whole new way through the power
of AI + data + CRM. For more information about Salesforce (NYSE:
CRM), visit: www.salesforce.com.
"Safe harbor" statement under the Private Securities Litigation
Reform Act of 1995: This press release contains forward-looking
statements about the Company's financial and operating results and
guidance, which include, but are not limited to, expected GAAP and
non-GAAP financial and other operating and non-operating results,
including revenue, net income, earnings per share, operating cash
flow growth, operating margin, expected revenue growth, expected
foreign currency exchange rate impact, expected current remaining
performance obligation growth, expected tax rates or provisions,
stock-based compensation expenses, amortization of purchased
intangibles, shares outstanding, market growth, strategic
investments, and expected restructuring expense or charges, and the
expected timing of product releases and enhancements. The
achievement or success of the matters covered by such
forward-looking statements involves risks, uncertainties and
assumptions. If any such risks or uncertainties materialize or if
any of the assumptions prove incorrect, the Company’s results or
outcomes could differ materially from those expressed or implied by
the forward-looking statements it makes.
The risks and uncertainties referred to above include -- but are
not limited to -- risks associated with the impact of, and actions
we may take in response to, the COVID-19 pandemic, related public
health measures and resulting economic downturn and market
volatility; our ability to maintain security levels and service
performance that meet the expectations of our customers, and the
resources and costs required to avoid unanticipated downtime and
prevent, detect and remediate performance degradation and security
breaches; the expenses associated with our data centers and
third-party infrastructure providers; our ability to secure
additional data center capacity; our reliance on third-party
hardware, software and platform providers; the effect of evolving
domestic and foreign government regulations, including those
related to the provision of services on the Internet, those related
to accessing the Internet, and those addressing data privacy,
cross-border data transfers and import and export controls; current
and potential litigation involving us or our industry, including
litigation involving acquired entities such as Slack Technologies,
Inc., and the resolution or settlement thereof; regulatory
developments and regulatory investigations involving us or
affecting our industry; our ability to successfully introduce new
services and product features, including any efforts to expand our
services; the success of our strategy of acquiring or making
investments in complementary businesses, joint ventures, services,
technologies and intellectual property rights; our ability to
complete, on a timely basis or at all, announced transactions; our
ability to realize the benefits from acquisitions, strategic
partnerships, joint ventures and investments, and successfully
integrate acquired businesses and technologies; our ability to
compete in the markets in which we participate; the success of our
business strategy and our plan to build our business, including our
strategy to be a leading provider of enterprise cloud computing
applications and platforms; our ability to execute our business
plans; our ability to continue to grow unearned revenue and
remaining performance obligation; the pace of change and innovation
in enterprise cloud computing services; the seasonal nature of our
sales cycles; our ability to limit customer attrition and costs
related to those efforts; the success of our international
expansion strategy; the demands on our personnel and infrastructure
resulting from significant growth in our customer base and
operations, including as a result of acquisitions; our ability to
preserve our workplace culture, including as a result of our
decisions regarding our current and future office environments or
work-from-home policies; our dependency on the development and
maintenance of the infrastructure of the Internet; our real estate
and office facilities strategy and related costs and uncertainties;
fluctuations in, and our ability to predict, our operating results
and cash flows; the variability in our results arising from the
accounting for term license revenue products; the performance and
fair value of our investments in complementary businesses through
our strategic investment portfolio; the impact of future gains or
losses from our strategic investment portfolio, including gains or
losses from overall market conditions that may affect the publicly
traded companies within our strategic investment portfolio; our
ability to protect our intellectual property rights; our ability to
maintain and enhance our brands; the impact of foreign currency
exchange rate and interest rate fluctuations on our results; the
valuation of our deferred tax assets and the release of related
valuation allowances; the potential availability of additional tax
assets in the future; the impact of new accounting pronouncements
and tax laws; uncertainties affecting our ability to estimate our
tax rate; uncertainties regarding our tax obligations in connection
with potential jurisdictional transfers of intellectual property,
including the tax rate, the timing of transfers and the value of
such transferred intellectual property; uncertainties regarding the
effect of general economic, business and market conditions,
including inflationary pressures, general economic downturn or
recession, market volatility, increasing interest rates and changes
in monetary policy; the potential impact of financial institution
instability; the impact of geopolitical events, including the
recent conflict in Europe; uncertainties regarding the impact of
expensing stock options and other equity awards; the sufficiency of
our capital resources; our ability to execute our share repurchase
program; our ability to comply with our debt covenants and lease
obligations; the impact of climate change, natural disasters and
actual or threatened public health emergencies the expected
benefits of and timing of completion of the restructuring plan and
the expected costs and charges of the restructuring plan,
including, among other things, the risk that the restructuring
costs and charges may be greater than we anticipate, the risk that
our restructuring efforts may adversely affect our internal
programs and our ability to recruit and retain skilled and
motivated personnel, and may be distracting to employees and
management, the risk that our restructuring efforts may negatively
impact our business operations and reputation with or ability to
serve customers, and the risk that our restructuring efforts may
not generate their intended benefits to the extent or as quickly as
anticipated; and our ability to achieve our aspirations, goals and
projections related to our environmental, social and governance
initiatives.
Further information on these and other factors that could affect
the Company’s actual results or outcomes is included in the reports
on Forms 10-K, 10-Q and 8-K and in other filings it makes with the
Securities and Exchange Commission from time to time. These
documents are available on the SEC Filings section of the
Financials section of the Company’s website at
http://investor.salesforce.com/financials/.
Salesforce, Inc. assumes no obligation and does not intend to
update these forward-looking statements, except as required by
law.
© 2023 Salesforce, Inc. All rights reserved. Salesforce and
other marks are trademarks of Salesforce, Inc. Other brands
featured herein may be trademarks of their respective owners.
Salesforce, Inc.
Condensed Consolidated Statements of
Operations
(in millions, except per share
data)
(Unaudited)
Three Months Ended April
30,
2023
2022
Revenues:
Subscription and support
$
7,642
$
6,856
Professional services and other
605
555
Total revenues
8,247
7,411
Cost of revenues (1)(2):
Subscription and support
1,510
1,440
Professional services and other
615
605
Total cost of revenues
2,125
2,045
Gross profit
6,122
5,366
Operating expenses (1)(2):
Research and development
1,207
1,318
Marketing and sales
3,154
3,372
General and administrative
638
656
Restructuring (3)
711
0
Total operating expenses
5,710
5,346
Income from operations
412
20
Gains (losses) on strategic investments,
net
(141
)
7
Other income (expense)
55
(56
)
Income (loss) before benefit from
(provision for) income taxes
326
(29
)
Benefit from (provision for) income
taxes
(127
)
57
Net income
$
199
$
28
Basic net income per share
$
0.20
$
0.03
Diluted net income per share
$
0.20
$
0.03
Shares used in computing basic net income
per share
980
991
Shares used in computing diluted net
income per share
988
1,001
(1) Amounts include amortization of
intangible assets acquired through business combinations, as
follows:
Three Months Ended April
30,
2023
2022
Cost of revenues
$
248
$
275
Marketing and sales
223
237
(2) Amounts include stock-based
compensation expense, as follows:
Three Months Ended April
30,
2023
2022
Cost of revenues
$
103
$
112
Research and development
241
279
Marketing and sales
263
291
General and administrative
73
94
Restructuring
16
0
(3) In January 2023, the Company announced
a restructuring plan (the "Restructuring Plan") intended to reduce
operating costs, improve operating margins, and continue advancing
the Company's ongoing commitment to profitable growth. The
Restructuring Plan includes a reduction of the Company's workforce
and select real estate exits and office space reductions within
certain markets.
Salesforce, Inc.
Condensed Consolidated Statements of
Operations
(As a percentage of total
revenues)
(Unaudited)
Three Months Ended April
30,
2023
2022
Revenues:
Subscription and support
93
%
93
%
Professional services and other
7
7
Total revenues
100
100
Cost of revenues (1)(2):
Subscription and support
18
20
Professional services and other
8
8
Total cost of revenues
26
28
Gross profit
74
72
Operating expenses (1)(2):
Research and development
15
18
Marketing and sales
38
45
General and administrative
8
9
Restructuring
8
0
Total operating expenses
69
72
Income from operations
5
0
Gains (losses) on strategic investments,
net
(2
)
0
Other income (expense)
1
0
Income (loss) before benefit from
(provision for) income taxes
4
0
Benefit from (provision for) income
taxes
(2
)
0
Net income
2
%
0
%
(1) Amounts include amortization of
intangible assets acquired through business combinations as a
percentage of total revenues, as follows:
Three Months Ended April
30,
2023
2022
Cost of revenues
3
%
4
%
Marketing and sales
3
3
(2) Amounts include stock-based
compensation expense as a percentage of total revenues, as
follows:
Three Months Ended April
30,
2023
2022
Cost of revenues
1
%
1
%
Research and development
3
4
Marketing and sales
3
4
General and administrative
1
1
Restructuring
0
0
Salesforce, Inc.
Condensed Consolidated Balance
Sheets
(in millions)
April 30, 2023
January 31, 2023
Assets
(unaudited)
Current assets:
Cash and cash equivalents
$
9,155
$
7,016
Marketable securities
4,822
5,492
Accounts receivable, net
4,632
10,755
Costs capitalized to obtain revenue
contracts, net
1,772
1,776
Prepaid expenses and other current
assets
1,600
1,356
Total current assets
21,981
26,395
Property and equipment, net
3,695
3,702
Operating lease right-of-use assets,
net
2,646
2,890
Noncurrent costs capitalized to obtain
revenue contracts, net
2,506
2,697
Strategic investments
4,633
4,672
Goodwill
48,567
48,568
Intangible assets acquired through
business combinations, net
6,654
7,125
Deferred tax assets and other assets,
net
2,859
2,800
Total assets
$
93,541
$
98,849
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable, accrued expenses and
other liabilities
$
5,733
$
6,743
Operating lease liabilities, current
591
590
Unearned revenue
15,121
17,376
Debt, current
181
1,182
Total current liabilities
21,626
25,891
Noncurrent debt
9,421
9,419
Noncurrent operating lease liabilities
2,880
2,897
Other noncurrent liabilities
2,202
2,283
Total liabilities
36,129
40,490
Stockholders’ equity:
Common stock
1
1
Treasury stock, at cost
(6,144
)
(4,000
)
Additional paid-in capital
56,026
55,047
Accumulated other comprehensive loss
(255
)
(274
)
Retained earnings
7,784
7,585
Total stockholders’ equity
57,412
58,359
Total liabilities and stockholders’
equity
$
93,541
$
98,849
Salesforce, Inc.
Condensed Consolidated Statements of
Cash Flows
(in millions)
(Unaudited)
Three Months Ended April
30,
2023
2022
Operating activities:
Net income
$
199
$
28
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization (1)
1,254
906
Amortization of costs capitalized to
obtain revenue contracts, net
470
394
Stock-based compensation expense
696
776
(Gains) losses on strategic investments,
net
141
(7
)
Changes in assets and liabilities, net of
business combinations:
Accounts receivable, net
6,123
5,805
Costs capitalized to obtain revenue
contracts, net
(275
)
(399
)
Prepaid expenses and other current assets
and other assets
(291
)
(409
)
Accounts payable and accrued expenses and
other liabilities
(1,403
)
(1,222
)
Operating lease liabilities
(168
)
(202
)
Unearned revenue
(2,255
)
(1,994
)
Net cash provided by operating
activities
4,491
3,676
Investing activities:
Business combinations, net of cash
acquired
0
(414
)
Purchases of strategic investments
(105
)
(223
)
Sales of strategic investments
9
45
Purchases of marketable securities
(368
)
(2,572
)
Sales of marketable securities
269
441
Maturities of marketable securities
785
445
Capital expenditures
(243
)
(179
)
Net cash provided by (used in) investing
activities
347
(2,457
)
Financing activities:
Repurchases of common stock
(2,054
)
0
Proceeds from employee stock plans
449
274
Principal payments on financing
obligations
(110
)
(72
)
Repayments of debt
(1,001
)
(1
)
Net cash provided by (used in) financing
activities
(2,716
)
201
Effect of exchange rate changes
17
(25
)
Net increase in cash and cash
equivalents
2,139
1,395
Cash and cash equivalents, beginning of
period
7,016
5,464
Cash and cash equivalents, end of
period
$
9,155
$
6,859
(1) Includes amortization of intangible
assets acquired through business combinations, depreciation of
fixed assets and amortization and impairment of right-of-use
assets.
Salesforce, Inc.
Additional Metrics
(Unaudited)
April 30,
2023
January 31,
2023
October 31,
2022
July 31,
2022
April 30,
2022
Full time equivalent headcount
72,970
79,390
79,824
78,634
77,810
Supplemental Revenue Analysis
Remaining Performance Obligation
Remaining performance obligation ("RPO") represents contracted
revenue that has not yet been recognized, which includes unearned
revenue and unbilled amounts that will be recognized as revenue in
future periods. RPO is influenced by several factors, including
seasonality, the timing of renewals, the timing of software license
deliveries, average contract terms and foreign currency exchange
rates. Remaining performance obligation is also impacted by
acquisitions. Unbilled portions of RPO denominated in foreign
currencies are revalued each period based on the period end
exchange rates. The portion of RPO that is unbilled is not recorded
on the consolidated balance sheets.
RPO consisted of the following (in billions):
Current
Noncurrent
Total
As of April 30, 2023
$
24.1
$
22.6
$
46.7
As of January 31, 2023
24.6
24.0
48.6
As of October 31, 2022
20.9
19.1
40.0
As of July 31, 2022
21.5
20.1
41.6
As of April 30, 2022
21.5
20.5
42.0
Unearned Revenue
Unearned revenue represents amounts that have been invoiced in
advance of revenue recognition and is recognized as revenue when
transfer of control to customers has occurred or services have been
provided. The change in unearned revenue was as follows (in
millions):
Three Months Ended April
30,
2023
2022
Unearned revenue, beginning of period
$
17,376
$
15,628
Billings and other (1)
5,937
5,328
Contribution from contract asset
55
89
Revenue recognized over time
(7,837
)
(7,056
)
Revenue recognized at a point in time
(410
)
(355
)
Unearned revenue from business
combinations
0
2
Unearned revenue, end of period
$
15,121
$
13,636
(1) Other includes, for example, the
impact of foreign currency translation.
Disaggregation of Revenue
Subscription and Support Revenue by the Company's service
offerings
Subscription and support revenues consisted of the following (in
millions):
Three Months Ended April
30,
2023
2022
Sales
$
1,810
$
1,632
Service
1,964
1,761
Platform and Other
1,567
1,419
Marketing and Commerce
1,170
1,089
Data
1,131
955
$
7,642
$
6,856
Total Revenue by Geographic Locations
Revenues by geographical region consisted of the following (in
millions):
Three Months Ended April
30,
2023
2022
Americas
$
5,482
$
4,971
Europe
1,951
1,738
Asia Pacific
814
702
$
8,247
$
7,411
Constant Currency Growth Rates
Subscription and support revenues constant currency growth rates
by the Company's service offerings were as follows:
Three Months Ended
April 30, 2023
Compared to Three
Months
Ended April 30, 2022
Three Months Ended
January 31, 2023
Compared to Three
Months
Ended January 31, 2022
Three Months Ended
April 30, 2022
Compared to Three
Months
Ended April 30, 2021
Sales
13%
16%
20%
Service
13%
15%
19%
Platform and Other
12%
18%
58%
Marketing and Commerce
10%
16%
24%
Data
20%
20%
15%
Revenue constant currency growth rates by geographical region
were as follows:
Three Months Ended
April 30, 2023
Compared to Three
Months
Ended April 30, 2022
Three Months Ended
January 31, 2023
Compared to Three
Months
Ended January 31, 2022
Three Months Ended
April 30, 2022
Compared to Three
Months
Ended April 30, 2021
Americas
10%
14%
21%
Europe
17%
20%
39%
Asia Pacific
24%
30%
32%
Total growth
13%
17%
26%
Current remaining performance obligation constant currency
growth rates were as follows:
April 30, 2023
Compared to
April 30, 2022
January 31, 2023
Compared to
January 31, 2022
April 30, 2022
Compared to
April 30, 2021
Total growth
12%
13%
24%
Salesforce, Inc.
GAAP Results Reconciled to non-GAAP
Results
The following tables reflect selected GAAP
results reconciled to non-GAAP results.
(in millions, except per share data)
(Unaudited)
Three Months Ended April
30,
2023
2022
Non-GAAP income
from operations
GAAP income from operations
$
412
$
20
Plus:
Amortization of purchased intangibles
(1)
471
512
Stock-based compensation expense
(2)(3)
680
776
Restructuring
711
0
Non-GAAP income from operations
$
2,274
$
1,308
Non-GAAP
operating margin as a percentage of revenues
Total revenues
$
8,247
$
7,411
GAAP operating margin (4)
5.0
%
0.3
%
Non-GAAP operating margin (4)
27.6
%
17.6
%
Non-GAAP net
income
GAAP net income
$
199
$
28
Plus:
Amortization of purchased intangibles
(1)
471
512
Stock-based compensation expense
(2)(3)
680
776
Restructuring
711
0
Income tax effects and adjustments
(387
)
(334
)
Non-GAAP net income
$
1,674
$
982
Three Months Ended April
30,
2023
2022
Non-GAAP diluted
net income per share
GAAP diluted net income per share
$
0.20
$
0.03
Plus:
Amortization of purchased intangibles
0.48
0.51
Stock-based compensation expense
0.69
0.78
Restructuring
0.72
0.00
Income tax effects and adjustments
(0.40
)
(0.34
)
Non-GAAP diluted net income per share
$
1.69
$
0.98
Shares used in computing Non-GAAP diluted
net income per share
988
1,001
(1) Amortization of purchased intangibles
was as follows:
Three Months Ended April
30,
2023
2022
Cost of revenues
$
248
$
275
Marketing and sales
223
237
$
471
$
512
(2) Stock-based compensation
expense, excluding stock-based compensation expense related to
restructuring, was as follows:
Three Months Ended April
30,
2023
2022
Cost of revenues
$
103
$
112
Research and development
241
279
Marketing and sales
263
291
General and administrative
73
94
$
680
$
776
(3) Stock-based compensation expense
included in the GAAP to non-GAAP reconciliation tables above for
the three months ended April 30, 2023 excludes stock-based
compensation expense related to the Restructuring Plan of $16
million, which is included in the Restructuring line.
(4) GAAP operating margin is the
proportion of GAAP income (loss) from operations as a percentage of
GAAP revenue. Non-GAAP operating margin is the proportion of
non-GAAP income from operations as a percentage of GAAP revenue.
Non-GAAP income from operations excludes the impact of the
amortization of purchased intangibles, stock-based compensation
expense and charges related to the Restructuring Plan.
Salesforce, Inc.
Computation of Basic and Diluted GAAP
and non-GAAP Net Income Per Share
(in millions, except per share data)
(Unaudited)
Three Months Ended April
30,
2023
2022
GAAP Basic Net Income Per Share
Net income
$
199
$
28
Basic net income per share
$
0.20
$
0.03
Shares used in computing basic net income
per share
980
991
Three Months Ended April
30,
2023
2022
Non-GAAP Basic Net Income Per
Share
Non-GAAP net income
$
1,674
$
982
Non-GAAP basic net income per share
$
1.71
$
0.99
Shares used in computing Non-GAAP basic
net income per share
980
991
Three Months Ended April
30,
2023
2022
GAAP Diluted Net Income Per
Share
Net income
$
199
$
28
Diluted net income per share
$
0.20
$
0.03
Shares used in computing diluted net
income per share
988
1,001
Three Months Ended April
30,
2023
2022
Non-GAAP Diluted Net Income Per
Share
Non-GAAP net income
$
1,674
$
982
Non-GAAP diluted net income per share
$
1.69
$
0.98
Shares used in computing Non-GAAP diluted
net income per share
988
1,001
Supplemental Cash Flow
Information
Computation of Free Cash Flow, a
Non-GAAP Measure
(in millions)
(Unaudited)
Three Months Ended April
30,
2023
2022
GAAP net cash provided by operating
activities
$
4,491
$
3,676
Capital expenditures
(243
)
(179
)
Free cash flow
$
4,248
$
3,497
Non-GAAP Financial Measures: This press release includes
information about non-GAAP operating margin, non-GAAP earnings per
share, non-GAAP tax rates, free cash flow, constant currency
revenue and constant currency current remaining performance
obligation growth rates (collectively the “non-GAAP financial
measures”). These non-GAAP financial measures are measurements of
financial performance that are not prepared in accordance with U.S.
generally accepted accounting principles and computational methods
may differ from those used by other companies. Non-GAAP financial
measures are not meant to be considered in isolation or as a
substitute for comparable GAAP measures and should be read only in
conjunction with the Company’s consolidated financial statements
prepared in accordance with GAAP. Management uses both GAAP and
non-GAAP measures when planning, monitoring and evaluating the
Company’s performance.
The primary purpose of using non-GAAP measures is to provide
supplemental information that may prove useful to investors and to
enable investors to evaluate the Company’s results in the same way
management does. Management believes that supplementing GAAP
disclosure with non-GAAP disclosure provides investors with a more
complete view of the Company’s operational performance and allows
for meaningful period-to-period comparisons and analysis of trends
in the Company’s business. Further to the extent that other
companies use similar methods in calculating non-GAAP measures, the
provision of supplemental non-GAAP information can allow for a
comparison of the Company’s relative performance against other
companies that also report non-GAAP operating results.
Non-GAAP Operating Margin is the proportion of non-GAAP income
from operations as a percentage of GAAP revenue. Non-GAAP income
from operations excludes the impact of the following items:
stock-based compensation expense, amortization of
acquisition-related intangibles, and charges related to the
Restructuring Plan. Non-GAAP operating margin for Q1 FY25 reflects
our operating priorities, not specific guidance. A reconciliation
of non-GAAP operating margin for Q1 FY25 is not available without
unreasonable efforts and has been omitted in accordance with SEC
rules. Non-GAAP earnings per share excludes, to the extent
applicable, the impact of the following items: stock-based
compensation expense, amortization of purchased intangibles,
charges related to the Restructuring Plan, and income tax
adjustments. These items are excluded because the decisions that
give rise to them are not made to increase revenue in a particular
period, but instead for the Company’s long-term benefit over
multiple periods.
As described above, the Company excludes or adjusts for the
following in its non-GAAP results and guidance:
- Stock-Based Compensation Expense: The Company’s compensation
strategy includes the use of stock-based compensation expense to
attract and retain employees and executives. It is principally
aimed at aligning their interests with those of our stockholders
and at long-term employee retention, rather than to motivate or
reward operational performance for any particular period. Thus,
stock-based compensation expense varies for reasons that are
generally unrelated to operational decisions and performance in any
particular period.
- Amortization of Purchased Intangibles: The Company views
amortization of acquisition-related intangible assets, such as the
amortization of the cost associated with an acquired Company’s
research and development efforts, trade names, customer lists and
customer relationships, and in some cases, acquired lease
intangibles, as items arising from pre-acquisition activities
determined at the time of an acquisition. While these intangible
assets are continually evaluated for impairment, amortization of
the cost of purchased intangibles is a static expense, which is not
typically affected by operations during any particular period.
Although the Company excludes the amortization of purchased
intangibles from these non-GAAP measures, management believes that
it is important for investors to understand that such intangible
assets were recorded as part of purchase accounting and contribute
to revenue generation.
- Restructuring: Restructuring charges are costs associated with
a formal restructuring plan and may include employee notice period
costs and severance payments, lease or contract termination costs,
asset impairments, accelerated depreciation and amortization, and
other related expenses. The Company excludes these restructuring
charges because they are distinct from ongoing operational costs
and it does not believe they are reflective of current and expected
future business performance and operating results.
- Gains on Strategic Investments, net: The Company records all
fair value adjustments to its equity securities held within the
strategic investment portfolio through the statement of operations.
As it is not possible to forecast future gains and losses, the
Company assumes no change to the value of its strategic investment
portfolio in its GAAP and non-GAAP estimates for future periods,
including its guidance. Gains on Strategic Investments, net, are
included in its GAAP financial statements.
- Income Tax Effects and Adjustments: The Company utilizes a
fixed long-term projected non-GAAP tax rate in order to provide
better consistency across the interim reporting periods by
eliminating the effects of items such as changes in the tax
valuation allowance and tax effects of acquisition-related costs,
since each of these can vary in size and frequency. When projecting
this long-term rate, the Company evaluated a three-year financial
projection that excludes the direct impact of the following
non-cash items: stock-based expenses and the amortization of
purchased intangibles. The projected rate also considers factors
including the Company’s expected tax structure, its tax positions
in various jurisdictions and key legislation in major jurisdictions
where the Company operates. For fiscal 2023, the Company used a
projected non-GAAP tax rate 22.0%. For fiscal 2024, the Company
uses a projected non-GAAP tax rate of 23.5%, which reflects
currently available information, as well as other factors and
assumptions. The non-GAAP tax rate could be subject to change for a
variety of reasons, including the rapidly evolving global tax
environment, significant changes in the Company’s geographic
earnings mix due to acquisition activity, or other changes to the
Company’s strategy or business operations. The Company will
re-evaluate its long-term rate as appropriate.
The Company presents constant currency information to provide a
framework for assessing how the Company's underlying business
performed excluding the effect of foreign currency rate
fluctuations. To present constant currency revenue growth rates,
current and comparative prior period results for entities reporting
in currencies other than United States dollars are converted into
United States dollars at the weighted average exchange rate for the
quarter being compared to rather than the actual exchange rates in
effect during that period. To present current remaining performance
obligation growth rates on a constant currency basis, current
remaining performance obligation balances in local currencies in
previous comparable periods are converted using the United States
dollar currency exchange rate as of the most recent balance sheet
date.
The Company defines the non-GAAP measure free cash flow as GAAP
net cash provided by operating activities, less capital
expenditures.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230531005696/en/
Mike Spencer Salesforce Investor Relations 415-536-6250
investor@salesforce.com
Carolyn Guss Salesforce Public Relations 415-536-4966
pr@salesforce.com
Salesforce (NYSE:CRM)
過去 株価チャート
から 8 2023 まで 9 2023
Salesforce (NYSE:CRM)
過去 株価チャート
から 9 2022 まで 9 2023
