Salesforce Q2 2024 Earnings Report
Key Takeaways
Salesforce reported strong second-quarter results for fiscal year 2024, with revenue reaching $8.60 billion, up 11% year-over-year. The company achieved a GAAP operating margin of 17.2% and a non-GAAP operating margin of 31.6%. Salesforce also raised its full-year revenue, operating margin, and operating cash flow growth guidance.
Second quarter revenue reached $8.60 billion, marking an 11% year-over-year increase.
GAAP operating margin was 17.2%, while non-GAAP operating margin was 31.6%.
Current remaining performance obligation stood at $24.1 billion, up 12% year-over-year.
GAAP diluted EPS was $1.28, and non-GAAP diluted EPS was $2.12.
Salesforce
Salesforce
Salesforce Revenue by Geographic Location
Forward Guidance
Salesforce is initiating its third quarter GAAP and non-GAAP diluted EPS guidance, current remaining performance obligation growth guidance, and revenue guidance. The company is raising its full year FY24 revenue guidance, GAAP and non-GAAP diluted EPS guidance, GAAP and non-GAAP operating margin guidance, and operating cash flow growth guidance.
Positive Outlook
- Third Quarter FY24 Revenue Guidance of $8.70 Billion to $8.72 Billion, up ~11% Y/Y
- Raises Full Year FY24 Revenue Guidance to $34.7 Billion to $34.8 Billion, up ~11% Y/Y
- Raises Full Year FY24 GAAP Operating Margin Guidance to ~13.3%
- Raises Full Year FY24 Non-GAAP Operating Margin Guidance to ~30.0%
- Raises Full Year FY24 Operating Cash Flow Growth Guidance to 22% to 23% Y/Y
Challenges Ahead
- 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.
- Operating Cash Flow Growth guidance includes an estimated 14% - 16% headwind associated with charges from restructuring.
- Current Remaining Performance Obligation FX impact is calculated by taking the current period rates compared to the prior period ending rates.
- Potential Q3 - Q4 FY24 repurchase activity under our share repurchase program.
Revenue & Expenses
Visualization of income flow from segment revenue to net income