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Oct 31, 2023
Salesforce Q3 2024 Earnings Report
Salesforce's Q3 2024 results were announced, demonstrating strong revenue and profitability growth.
Key Takeaways
Salesforce reported a strong third quarter in fiscal year 2024, with revenue reaching $8.72 billion, an 11% year-over-year increase. The company's GAAP operating margin was 17.2%, and non-GAAP operating margin was 31.2%. GAAP diluted EPS was $1.25, and non-GAAP diluted EPS was $2.11. Salesforce also returned $1.9 billion to stockholders through share repurchases.
Revenue reached $8.72 billion, up 11% year-over-year.
GAAP operating margin was 17.2%, and non-GAAP operating margin was 31.2%.
GAAP diluted EPS was $1.25, and non-GAAP diluted EPS was $2.11.
Current remaining performance obligation increased by 14% year-over-year to $23.9 billion.
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.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
Salesforce initiates Q4 FY24 revenue guidance of $9.18B to $9.23B, up 10% Y/Y, and narrows full year FY24 revenue guidance to $34.75B to $34.8B, up 11% Y/Y. Raises full year FY24 GAAP operating margin guidance to 14.5% and non-GAAP operating margin guidance to 30.5%.
Positive Outlook
- Q4 FY24 Revenue Guidance: $9.18 - $9.23 Billion, up 10% Y/Y
- Full Year FY24 Revenue Guidance: $34.75 - $34.8 Billion, up 11% Y/Y
- Full Year FY24 GAAP Operating Margin Guidance: 14.5%
- Full Year FY24 Non-GAAP Operating Margin Guidance: 30.5%
- Full Year FY24 Operating Cash Flow Growth Guidance: 30% - 33% Y/Y
Challenges Ahead
- Operating Cash Flow Growth guidance includes an estimated 14% - 16% headwind from charges associated with restructuring plan.
- Guidance assumes no change to the value of the Company's strategic investment portfolio.
- GAAP tax rates may fluctuate due to discrete tax items.
- Current Remaining Performance Obligation Growth (Y/Y) is impacted by FX (~1 pt).
- Revenue FX impact is calculated by taking the current period rates compared to the prior period average rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income