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Salesforce
🇺🇸 NYSE:CRM
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Apr 30, 2023

Salesforce Q1 2024 Earnings Report

Salesforce's Q1 2024 earnings exceeded expectations, driven by strong revenue growth and significant margin expansion.

Key Takeaways

Salesforce reported strong first-quarter results for fiscal year 2024, with revenue reaching $8.25 billion, an 11% increase year-over-year. The company's GAAP operating margin was 5.0%, while the non-GAAP operating margin was 27.6%. GAAP EPS was $0.20, and non-GAAP EPS was $1.69. Salesforce also returned $2.1 billion to stockholders through share repurchases.

Revenue reached $8.25 billion, up 11% year-over-year.

GAAP operating margin was 5.0%, and non-GAAP operating margin was 27.6%.

GAAP EPS was $0.20, and non-GAAP EPS was $1.69.

Current remaining performance obligation was $24.1 billion, up 12% year-over-year.

Total Revenue
$8.25B
Previous year: $7.41B
+11.3%
EPS
$1.69
Previous year: $0.98
+72.4%
Current RPO
$46.7B
Gross Profit
$6.12B
Previous year: $5.37B
+14.1%
Cash and Equivalents
$9.16B
Previous year: $6.86B
+33.5%
Free Cash Flow
$4.25B
Previous year: $3.5B
+21.5%
Total Assets
$93.5B
Previous year: $93B
+0.6%

Salesforce

Salesforce

Salesforce Revenue by Segment

Salesforce Revenue by Geographic Location

Forward Guidance

Salesforce initiated 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.

Positive Outlook

  • 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%
  • Raises Full Year FY24 Non-GAAP Operating Margin Guidance to ~28.0%
  • Second Quarter FY24 Non-GAAP Earnings per Share of $1.89 - $1.90

Challenges Ahead

  • Operating Cash Flow Growth guidance includes an estimated 14% - 16% headwind associated with charges from restructuring.
  • 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.
  • 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.
  • Uncertainties regarding the impact of expensing stock options and other equity awards
  • Uncertainties affecting our ability to estimate our tax rate

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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