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Salesforce
🇺🇸 NYSE:CRM
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Apr 30, 2024

Salesforce Q1 2025 Earnings Report

Salesforce's Q1 2025 results were announced, demonstrating revenue growth and strong cash flow generation.

Key Takeaways

Salesforce announced its Q1 fiscal year 2025 results, reporting a revenue of $9.13 billion, up 11% year-over-year. The company's GAAP operating margin was 18.7%, and non-GAAP operating margin was 32.1%. Strong operating and free cash flow were reported, with a focus on leveraging AI in their CRM offerings.

Q1 revenue reached $9.13 billion, an 11% increase year-over-year.

GAAP operating margin was 18.7%, while non-GAAP operating margin was 32.1%.

Operating cash flow was $6.25 billion, up 39% year-over-year, and free cash flow was $6.08 billion, up 43% year-over-year.

Current remaining performance obligation was $26.4 billion, up 10% year-over-year.

Total Revenue
$9.13B
Previous year: $8.25B
+10.7%
EPS
$2.44
Previous year: $1.69
+44.4%
Current RPO
$26.4B
Previous year: $46.7B
-43.5%
Gross Profit
$6.97B
Previous year: $6.12B
+13.9%
Cash and Equivalents
$9.96B
Previous year: $9.16B
+8.8%
Free Cash Flow
$6.08B
Previous year: $4.25B
+43.1%
Total Assets
$96.2B
Previous year: $93.5B
+2.8%

Salesforce

Salesforce

Salesforce Revenue by Segment

Salesforce Revenue by Geographic Location

Forward Guidance

Salesforce provided revenue guidance for Q2 FY25, expecting $9.20 billion to $9.25 billion, representing a 7% - 8% year-over-year growth. They maintained full-year FY25 revenue guidance of $37.7 billion to $38.0 billion, indicating an 8% - 9% year-over-year increase. The full year GAAP operating margin guidance was lowered to 19.9%, while maintaining a non-GAAP operating margin guidance of 32.5%.

Positive Outlook

  • Q2 FY25 revenue is expected to be between $9.20 billion and $9.25 billion, indicating a 7-8% year-over-year growth.
  • Full year FY25 revenue is projected to be between $37.7 billion and $38.0 billion, reflecting an 8-9% year-over-year growth.
  • Non-GAAP operating margin for the full year FY25 is maintained at 32.5%.
  • Full year FY25 GAAP diluted EPS is expected to be $6.04 - $6.12.
  • Full year FY25 non-GAAP diluted EPS is projected to be $9.86 - $9.94.

Challenges Ahead

  • Full year FY25 subscription & support revenue growth guidance was lowered to slightly below 10% Y/Y & Approximately 10% in CC.
  • Full Year FY25 GAAP Operating Margin Guidance was lowered to 19.9%.
  • Q2 FY25 revenue will be impacted by $50M Y/Y FX.
  • Full Year FY25 revenue will be impacted by $100M Y/Y FX.
  • Current Remaining Performance Obligation Growth (Y/Y) will be impacted by ($200M) Y/Y FX.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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