0001108524FALSE00011085242023-11-292023-11-29

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
________________________________________________________ 
FORM 8-K
________________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
November 29, 2023
Date of Report (date of earliest event reported)
 _________________________________________________________
Salesforce, Inc.
(Exact name of registrant as specified in its charter) 
__________________________________________________________ 
 
Delaware001-3222494-3320693
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
Salesforce Tower
415 Mission Street, 3rd Fl
San Francisco, California 94105
(Address of principal executive offices)
Registrant’s telephone number, including area code: (415901-7000
N/A
(Former name or former address, if changed since last report)
_________________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.001 per shareCRMNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.




Section 2 – Financial Information
Item 2.02 Results of Operations and Financial Condition.
On November 29, 2023, Salesforce, Inc. (the “Company”) issued a press release announcing its results for the fiscal quarter ended October 31, 2023. A copy of the press release is attached as Exhibit 99.1 to this current report on Form 8-K and is incorporated by reference herein.
The information in each item of this current report on Form 8-K and the exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

Section 9 – Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
 
(d)Exhibits
99.1  
104Cover Page Interactive Data File—the cover page XBRL tags are embedded within the Inline XBRL document






Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Dated: November 29, 2023Salesforce, Inc.
/s/ Sundeep Reddy
Sundeep Reddy
Executive Vice President,
Chief Accounting Officer
(Principal Accounting Officer)


Exhibit 99.1


Salesforce Announces Strong Third Quarter Fiscal 2024 Results

SAN FRANCISCO, Calif. - November 29, 2023 - Salesforce (NYSE: CRM), the #1 AI CRM, today announced results for its third quarter fiscal 2024 ended October 31, 2023.

Third Quarter Revenue of $8.72 Billion, up 11% Year-Over-Year ("Y/Y"), up 10% in Constant Currency ("CC")
Third Quarter GAAP Operating Margin of 17.2% and non-GAAP Operating Margin of 31.2%
Current Remaining Performance Obligation of $23.9 Billion, up 14% Y/Y, 13% CC
Third Quarter GAAP Diluted Earnings per Share ("EPS") of $1.25 and non-GAAP Diluted EPS of $2.11
Returned $1.9 Billion to Stockholders in the Third Quarter in the Form of Share Repurchases
Initiates Fourth Quarter FY24 Revenue Guidance of $9.18 Billion to $9.23 Billion, up 10% Y/Y
Narrows Full Year FY24 Revenue Guidance to $34.75 Billion to $34.8 Billion, up 11% Y/Y
Raises Full Year FY24 GAAP Operating Margin Guidance to 14.5% and non-GAAP Operating Margin Guidance to 30.5%
Raises Full Year FY24 Operating Cash Flow Growth Guidance to 30% to 33% Y/Y

“We had another strong quarter of executing on our profitable growth plan we set in motion last year, delivering $8.7 billion in revenue and again raising our operating margin guidance for this fiscal year,” said Marc Benioff, Chair and CEO, Salesforce. “We're now the third largest enterprise software company by revenue, the number one AI CRM and the number one enterprise apps company. Most importantly, we're bringing CRM, data, AI and trust together in a single, integrated platform, leading our customers into a new era of incredible productivity and growth.”

“Over the last year we have transformed the company, enabling us to deliver another quarter of strong profitable growth with GAAP operating margin of 17.2% and non-GAAP operating margin of 31.2%,” said Amy Weaver, President and CFO of Salesforce. “We remain focused on driving shareholder value as we deliver innovation to our customers as the #1 AI CRM.”

Salesforce delivered the following results for its fiscal third quarter:

Revenue: Total third quarter revenue was $8.72 billion, an increase of 11% Y/Y and 10% CC. Subscription and support revenues were $8.14 billion, an increase of 13% Y/Y. Professional services and other revenues were $0.58 billion, a decrease of (4)% Y/Y.

Operating Margin: Third quarter GAAP operating margin was 17.2%. Third quarter non-GAAP operating margin was 31.2%. Restructuring negatively impacted third quarter GAAP operating margin by (60) bps.

Earnings per Share: Third quarter GAAP diluted EPS was $1.25, and non-GAAP diluted EPS was $2.11. Losses on the Company’s strategic investments negatively impacted GAAP diluted EPS by $(0.06) based on a U.S. tax rate of 25% and non-GAAP diluted EPS by $(0.06) based on a non-GAAP tax rate of 23.5%. Restructuring negatively impacted third quarter GAAP diluted EPS by $(0.06).

Cash Flow: Cash generated from operations for the third quarter was $1.53 billion, an increase of 389% Y/Y. Free cash flow was $1.37 billion, an increase of 1088% Y/Y. Restructuring negatively impacted third quarter operating cash flow growth by (3,600) bps.

Remaining Performance Obligation: Remaining performance obligation ended the third quarter at $48.3 billion, an increase of 21% Y/Y. Current remaining performance obligation ended at $23.9 billion, an increase of 14% Y/Y, and 13% CC.





Forward Looking Guidance

As of November 29, 2023, the Company is initiating its fourth quarter GAAP and non-GAAP diluted EPS guidance, current remaining performance obligation growth guidance, and revenue guidance. The Company is updating its full year FY24 revenue guidance and raising its GAAP and non-GAAP diluted EPS guidance, GAAP and non-GAAP operating margin guidance, and operating cash flow growth 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 excess tax benefits from 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.
Q4 FY24
Guidance
Full Year FY24
Guidance
Revenue
$9.18 - $9.23 Billion$34.75 - $34.8 Billion
        Y/Y Growth
10%11%
        FX Impact(1)
No impact($50M) Y/Y FX
GAAP Operating MarginN/A14.5%
Non-GAAP Operating Margin(2)
N/A30.5%
GAAP Diluted Earnings per Share(2)
$1.26 - $1.27$3.99 - $4.00
Non-GAAP Diluted Earnings per Share(2)
$2.25 - $2.26$8.18 - $8.19
Operating Cash Flow Growth (Y/Y)(3)
N/A30% - 33%
Current Remaining Performance Obligation Growth (Y/Y)10%N/A
        FX Impact(4)
(~1 pt)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 EPS are non-GAAP financial measures. See below for an explanation of non-GAAP financial measures. The Company's shares used in computing GAAP Diluted EPS guidance and non-GAAP Diluted EPS guidance excludes any impact to share count from potential Q4 FY24 repurchase activity under our share repurchase program.
(3) Operating Cash Flow Growth guidance includes an estimated 14% - 16% headwind from charges associated with our restructuring plan announced on January 4, 2023 (the "Restructuring Plan").
(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)
~14.5%
Plus
Amortization of purchased intangibles(2)
5.4%
Stock-based compensation expense(2)(3)
8.0%
Restructuring(2)(3)
2.6%
Non-GAAP operating margin(1)
~30.5%
(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 in the restructuring line have been calculated based on charges associated with the Restructuring Plan. Stock-based compensation expense included in the full year FY24 guidance GAAP to non-GAAP reconciliation table excludes stock-based compensation expense related to the Restructuring Plan, which is included in the restructuring line.




The following is a per share reconciliation of GAAP diluted EPS to non-GAAP diluted EPS guidance for the next quarter and the full year:
 
Fiscal 2024
 
Q4
FY24
GAAP diluted earnings per share range(1)(2)
$1.26 - $1.27$3.99 - $4.00
Plus
Amortization of purchased intangibles$0.47 $1.90 
Stock-based compensation expense$0.69 $2.82 
Restructuring(3)
$0.09 $0.91 
Less
Income tax effects and adjustments(4)
$(0.26)$(1.44)
Non-GAAP diluted earnings per share(2)
$2.25 - $2.26$8.18 - $8.19
Shares used in computing basic net income per share (millions)(5)
973 975 
Shares used in computing diluted net income per share (millions)(5)
984 985 
(1) The Company's GAAP tax provision is expected to be approximately 26% for the three months ended January 31, 2024, and approximately 21% 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 EPS 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 EPS is 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 EPS guidance and non-GAAP EPS guidance excludes any impact to share count from 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 Winter 2024 Product Release, visit: www.salesforce.com/products/innovation/winter-24-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 through the power of AI + data + CRM. For more information about Salesforce (NYSE: CRM), visit: www.salesforce.com.


Mike Spencer
Salesforce
Investor Relations
415-536-6250
investor@salesforce.com

Carolyn Guss
Salesforce




Public Relations
415-536-4966
pr@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, expected restructuring expense or charges, and 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: 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; uncertainties regarding AI technologies and its integration into our product offerings; 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, cybersecurity, cross-border data transfers and import and export controls; current and potential litigation involving us or our industry, including litigation involving acquired entities, 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 remote work 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, changes in monetary policy and the prospect of a shutdown of the U.S. federal government; the potential impact of financial institution instability; the impact of geopolitical events, including the war




in Ukraine and the Israel-Hamas war; 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; 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, our restructuring efforts may adversely affect our internal programs and ability to recruit and retain skilled and motivated personnel, our restructuring efforts may be distracting to employees and management, our restructuring efforts may negatively impact our business operations and reputation with or ability to serve customers, and 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 (“ESG”) initiatives, including our ability to comply with evolving legal standards and federal and state regulations concerning ESG matters.

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)
3Three Months Ended October 31,Nine Months Ended October 31,
2023202220232022
Revenues:
Subscription and support$8,141 $7,233 $23,789 $21,232 
Professional services and other579 604 1,781 1,736 
Total revenues8,720 7,837 25,570 22,968 
Cost of revenues (1)(2):
Subscription and support 1,571 1,451 4,596 4,381 
Professional services and other 584 637 1,797 1,879 
Total cost of revenues2,155 2,088 6,393 6,260 
Gross profit6,565 5,749 19,177 16,708 
Operating expenses (1)(2):
Research and development1,204 1,280 3,631 3,927 
Marketing and sales3,173 3,345 9,440 10,141 
General and administrative632 664 1,902 1,967 
Restructuring (3)55 815 
Total operating expenses5,064 5,289 15,788 16,035 
Income from operations1,501 460 3,389 673 
Gains (losses) on strategic investments, net(72)23 (242)75 
Other income (expense)58 (8)158 (121)
Income before provision for income taxes1,487 475 3,305 627 
Provision for income taxes(263)(265)(615)(321)
Net income$1,224 $210 $2,690 $306 
Basic net income per share$1.26 $0.21 $2.76 $0.31 
Diluted net income per share$1.25 $0.21 $2.73 $0.31 
Shares used in computing basic net income per share972 997 976 995 
Shares used in computing diluted net income per share981 1,000 985 1,001 
(1)Amounts include amortization of intangible assets acquired through business combinations, as follows:
 Three Months Ended October 31,Nine Months Ended October 31,
 2023202220232022
Cost of revenues$245 $250 $743 $785 
Marketing and sales223 224 668 693 
(2)Amounts include stock-based compensation expense, as follows:
 Three Months Ended October 31,Nine Months Ended October 31,
 2023202220232022
Cost of revenues$109 $130 $324 $372 
Research and development238 287 735 863 
Marketing and sales275 330 815 947 
General and administrative71 96 223 288 
Restructuring 16 
(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 October 31,Nine Months Ended October 31,
 2023202220232022
Revenues:
Subscription and support93 %92 %93 %92 %
Professional services and other
Total revenues100 100 100 100 
Cost of revenues (1)(2):
Subscription and support 18 19 18 19 
Professional services and other
Total cost of revenues25 27 25 27 
Gross profit75 73 75 73 
Operating expenses (1)(2):
Research and development14 16 14 17 
Marketing and sales36 43 37 44 
General and administrative
Restructuring
Total operating expenses58 67 62 70 
Income from operations17 13 
Gains (losses) on strategic investments, net (1)(1)
Other income (expense)
Income before provision for income taxes17 13 
Provision for income taxes(3)(3)(2)(2)
Net income14 %%11 %%

(1)Amounts include amortization of intangible assets acquired through business combinations as a percentage of total revenues, as follows:
 Three Months Ended October 31,Nine Months Ended October 31,
 2023202220232022
Cost of revenues%%%%
Marketing and sales

(2)Amounts include stock-based compensation expense as a percentage of total revenues, as follows:
 Three Months Ended October 31,Nine Months Ended October 31,
 2023202220232022
Cost of revenues%%%%
Research and development
Marketing and sales
General and administrative
Restructuring



Salesforce, Inc.
Condensed Consolidated Balance Sheets
(in millions)
October 31, 2023January 31, 2023
Assets(unaudited)
Current assets:
Cash and cash equivalents$6,453 $7,016 
Marketable securities5,410 5,492 
Accounts receivable, net 4,850 10,755 
Costs capitalized to obtain revenue contracts, net 1,757 1,776 
Prepaid expenses and other current assets1,732 1,356 
Total current assets20,202 26,395 
Property and equipment, net3,807 3,702 
Operating lease right-of-use assets, net 2,518 2,890 
Noncurrent costs capitalized to obtain revenue contracts, net 2,194 2,697 
Strategic investments4,774 4,672 
Goodwill48,614 48,568 
Intangible assets acquired through business combinations, net5,737 7,125 
Deferred tax assets and other assets, net 3,176 2,800 
Total assets$91,022 $98,849 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable, accrued expenses and other liabilities$5,308 $6,743 
Operating lease liabilities, current 523 590 
Unearned revenue 12,564 17,376 
Debt, current999 1,182 
Total current liabilities19,394 25,891 
Noncurrent debt8,426 9,419 
Noncurrent operating lease liabilities2,764 2,897 
Other noncurrent liabilities 2,348 2,283 
Total liabilities32,932 40,490 
Stockholders’ equity:
Common stock
Treasury stock, at cost(10,004)(4,000)
Additional paid-in capital58,149 55,047 
Accumulated other comprehensive loss(331)(274)
Retained earnings10,275 7,585 
Total stockholders’ equity58,090 58,359 
Total liabilities and stockholders’ equity$91,022 $98,849 




Salesforce, Inc.
Condensed Consolidated Statements of Cash Flows
(in millions)
(Unaudited)
3Three Months Ended October 31,Nine Months Ended October 31,
2023202220232022
Operating activities:
Net income$1,224 $210 $2,690 $306 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (1)862 941 3,006 2,754 
Amortization of costs capitalized to obtain revenue contracts, net482 423 1,428 1,225 
Stock-based compensation expense693 843 2,113 2,470 
(Gains) losses on strategic investments, net72 (23)242 (75)
Changes in assets and liabilities, net of business combinations:
Accounts receivable, net550 471 5,905 5,486 
Costs capitalized to obtain revenue contracts, net(300)(375)(906)(1,279)
Prepaid expenses and other current assets and other assets(407)(63)(750)(359)
Accounts payable and accrued expenses and other liabilities 172 (309)(1,607)(1,205)
Operating lease liabilities(139)(173)(474)(561)
Unearned revenue(1,677)(1,632)(4,816)(4,439)
Net cash provided by operating activities1,532 313 6,831 4,323 
Investing activities:
Business combinations, net of cash acquired(82)(82)(439)
Purchases of strategic investments(103)(44)(390)(475)
Sales of strategic investments80 98 102 181 
Purchases of marketable securities(661)(408)(2,827)(4,132)
Sales of marketable securities315 500 1,117 1,392 
Maturities of marketable securities563 585 1,810 1,752 
Capital expenditures(166)(198)(589)(580)
Net cash provided by (used in) investing activities(54)533 (859)(2,301)
Financing activities:
Repurchases of common stock(1,925)(1,677)(5,928)(1,677)
Proceeds from employee stock plans274 233 1,085 688 
Principal payments on financing obligations (114)(233)(506)(349)
Repayments of debt(1)(1,182)(3)
Net cash used in financing activities(1,765)(1,678)(6,531)(1,341)
Effect of exchange rate changes(32)(23)(4)(69)
Net increase (decrease) in cash and cash equivalents(319)(855)(563)612 
Cash and cash equivalents, beginning of period6,772 6,931 7,016 5,464 
Cash and cash equivalents, end of period$6,453 $6,076 $6,453 $6,076 
(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)
October 31, 2023July 31,
2023
April 30, 2023January 31, 2023October 31, 2022
Full time equivalent headcount70,843 70,456 72,970 79,390 79,824 
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):
 CurrentNoncurrentTotal
As of October 31, 2023$23.9 $24.4 $48.3 
As of July 31, 202324.1 22.5 46.6 
As of April 30, 202324.1 22.6 46.7 
As of January 31, 202324.6 24.0 48.6 
As of October 31, 202220.9 19.1 40.0 
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 October 31,Nine Months Ended October 31,
2023202220232022
Unearned revenue, beginning of period$14,237 $12,825 $17,376 $15,628 
Billings and other (1)6,876 6,142 20,536 18,354 
Contribution from contract asset167 63 218 175 
Revenue recognized over time(8,249)(7,473)(24,264)(21,865)
Revenue recognized at a point in time(471)(364)(1,306)(1,103)
Unearned revenue from business combinations
Unearned revenue, end of period$12,564 $11,193 $12,564 $11,193 
(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 October 31,Nine Months Ended October 31,
2023202220232022
Sales $1,906 $1,717 $5,611 $5,044 
Service 2,074 1,856 6,087 5,445 
Platform and Other1,686 1,513 4,891 4,410 
Marketing and Commerce1,230 1,129 3,638 3,339 
Data (1)1,245 1,018 3,562 2,994 
$8,141 $7,233 $23,789 $21,232 
(1) Data is comprised of revenue from Analytics, which includes Tableau, and Integration, which includes Mulesoft.
Total Revenue by Geographic Locations
Revenues by geographical region consisted of the following (in millions):
Three Months Ended October 31,Nine Months Ended October 31,
 2023202220232022
Americas$5,862 $5,361 $17,113 $15,593 
Europe1,998 1,745 5,923 5,228 
Asia Pacific860 731 2,534 2,147 
$8,720 $7,837 $25,570 $22,968 
Constant Currency Growth Rates
Subscription and support revenues constant currency growth rates by the Company's service offerings were as follows:
Three Months Ended
October 31, 2023
Compared to Three Months
Ended October 31, 2022
Three Months Ended
July 31, 2023
Compared to Three Months
Ended July 31, 2022
Three Months Ended
October 31, 2022
Compared to Three Months
Ended October 31, 2021
Sales10%12%17%
Service11%12%16%
Platform and Other11%11%22%
Marketing and Commerce8%10%18%
Data (1)22%16%16%
(1) Data is comprised of revenue from Analytics, which includes Tableau, and Integration, which includes Mulesoft.
Revenue constant currency growth rates by geographical region were as follows:
Three Months Ended
October 31, 2023
Compared to Three Months
Ended October 31, 2022
Three Months Ended
July 31, 2023
Compared to Three Months
Ended July 31, 2022
Three Months Ended
October 31, 2022
Compared to Three Months
Ended October 31, 2021
Americas9%10%16%
Europe10%11%23%
Asia Pacific21%24%30%
Total growth10%11%19%
Current remaining performance obligation constant currency growth rates were as follows:
October 31, 2023
Compared to
October 31, 2022
July 31, 2023
Compared to
July 31, 2022
October 31, 2022
Compared to
October 31, 2021
Total growth13%11%15%




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 October 31,Nine Months Ended October 31,
 2023202220232022
Non-GAAP income from operations
GAAP income from operations$1,501 $460 $3,389 $673 
Plus:
Amortization of purchased intangibles (1)468 474 1,411 1,478 
Stock-based compensation expense (2)(3)693 843 2,097 2,470 
Restructuring55 815 
Non-GAAP income from operations$2,717 $1,777 $7,712 $4,621 
Non-GAAP operating margin as a percentage of revenues
Total revenues$8,720 $7,837 $25,570 $22,968 
GAAP operating margin (4)17.2 %5.9 %13.3 %2.9 %
Non-GAAP operating margin (4)31.2 %22.7 %30.2 %20.1 %
Non-GAAP net income
GAAP net income$1,224 $210 $2,690 $306 
Plus:
Amortization of purchased intangibles (1)468 474 1,411 1,478 
Stock-based compensation expense (2)(3)693 843 2,097 2,470 
Restructuring55 815 
Income tax effects and adjustments(372)(129)(1,177)(686)
Non-GAAP net income$2,068 $1,398 $5,836 $3,568 
















Three Months Ended October 31,Nine Months Ended October 31,
2023202220232022
Non-GAAP diluted net income per share
GAAP diluted net income per share$1.25 $0.21 $2.73 $0.31 
Plus:
Amortization of purchased intangibles0.48 0.47 1.43 1.48 
Stock-based compensation expense0.71 0.84 2.13 2.47 
Restructuring0.06 0.00 0.83 0.00 
Income tax effects and adjustments(0.39)(0.12)(1.19)(0.70)
Non-GAAP diluted net income per share$2.11 $1.40 $5.93 $3.56 
Shares used in computing Non-GAAP diluted net income per share981 1,000 985 1,001 

(1)Amortization of purchased intangibles was as follows:
 Three Months Ended October 31,Nine Months Ended October 31,
 2023202220232022
Cost of revenues$245 $250 $743 $785 
Marketing and sales223 224 668 693 
$468 $474 $1,411 $1,478 

(2)Stock-based compensation expense, excluding stock-based compensation expense related to restructuring, was as follows:
 Three Months Ended October 31,Nine Months Ended October 31,
 2023202220232022
Cost of revenues$109 $130 $324 $372 
Research and development238 287 735 863 
Marketing and sales275 330 815 947 
General and administrative71 96 223 288 
$693 $843 $2,097 $2,470 

(3)    Stock-based compensation expense included in the GAAP to non-GAAP reconciliation tables above for the nine months ended October 31, 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 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 October 31,Nine Months Ended October 31,
 2023202220232022
GAAP Basic Net Income Per Share
Net income$1,224 $210 $2,690 $306 
Basic net income per share$1.26 $0.21 $2.76 $0.31 
Shares used in computing basic net income per share972 997 976 995 
 Three Months Ended October 31,Nine Months Ended October 31,
 2023202220232022
Non-GAAP Basic Net Income Per Share
Non-GAAP net income$2,068 $1,398 $5,836 $3,568 
Non-GAAP basic net income per share$2.13 $1.40 $5.98 $3.59 
Shares used in computing Non-GAAP basic net income per share972 997 976 995 
 Three Months Ended October 31,Nine Months Ended October 31,
 2023202220232022
GAAP Diluted Net Income Per Share
Net income$1,224 $210 $2,690 $306 
Diluted net income per share$1.25 $0.21 $2.73 $0.31 
Shares used in computing diluted net income per share981 1,000 985 1,001 
 Three Months Ended October 31,Nine Months Ended October 31,
 2023202220232022
Non-GAAP Diluted Net Income Per Share
Non-GAAP net income$2,068 $1,398 $5,836 $3,568 
Non-GAAP diluted net income per share$2.11 $1.40 $5.92 $3.56 
Shares used in computing Non-GAAP diluted net income per share981 1,000 985 1,001 

Supplemental Cash Flow Information
Computation of Free Cash Flow, a Non-GAAP Measure
(in millions)
(Unaudited)
 Three Months Ended October 31,Nine Months Ended October 31,
 2023202220232022
GAAP net cash provided by operating activities$1,532 $313 $6,831 $4,323 
Capital expenditures(166)(198)(589)(580)
Free cash flow$1,366 $115 $6,242 $3,743 




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.


v3.23.3
Document and Entity Information
Nov. 29, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Nov. 29, 2023
Entity Registrant Name Salesforce, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-32224
Entity Tax Identification Number 94-3320693
Entity Address, Address Line One Salesforce Tower
Entity Address, Address Line Two 415 Mission Street, 3rd Fl
Entity Address, City or Town San Francisco
Entity Address, State or Province CA
Entity Address, Postal Zip Code 94105
City Area Code 415
Local Phone Number 901-7000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.001 per share
Trading Symbol CRM
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001108524
Amendment Flag false

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