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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.
Salesforce
Salesforce
Salesforce Revenue by Segment
Salesforce Revenue by Geographic Location
Revenue by Segment
Sales Revenue
CapyFin.comService Revenue
CapyFin.comPlatform and Other Revenue
CapyFin.comMarketing and Commerce Revenue
CapyFin.comIntegration and Analytics Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com 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