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Jan 31, 2023

Salesforce Q4 2023 Earnings Report

Salesforce's Q4 2023 results were announced, revealing a strong quarter with revenue up 14% year-over-year and non-GAAP EPS of $1.68.

Key Takeaways

Salesforce announced strong Q4 and full fiscal year 2023 results. Q4 revenue was $8.38 billion, up 14% year-over-year. The company's GAAP loss per share was $(0.10), while non-GAAP EPS was $1.68. Salesforce provided FY24 revenue guidance of $34.5 to $34.7 billion.

Q4 revenue reached $8.38 billion, a 14% increase year-over-year.

GAAP diluted loss per share was $(0.10), while non-GAAP diluted EPS was $1.68.

Current remaining performance obligation was $24.6 billion, up 12% year-over-year.

The company returned $2.3 billion to shareholders through share repurchases in Q4.

Total Revenue
$8.38B
Previous year: $7.33B
+14.4%
EPS
$1.68
Previous year: $0.84
+100.0%
Current RPO
$48.6B
Gross Profit
$6.28B
Previous year: $5.31B
+18.3%
Cash and Equivalents
$7.02B
Previous year: $5.46B
+28.4%
Free Cash Flow
$2.57B
Previous year: $1.82B
+41.6%
Total Assets
$98.8B
Previous year: $95.2B
+3.8%

Salesforce

Salesforce

Salesforce Revenue by Segment

Salesforce Revenue by Geographic Location

Forward Guidance

Salesforce is initiating its first quarter GAAP and non-GAAP EPS guidance, current remaining performance obligation growth guidance, and revenue guidance. The Company is initiating its full year FY24 revenue guidance, GAAP and non-GAAP EPS guidance, GAAP and non-GAAP operating margin guidance, and operating cash flow guidance.

Positive Outlook

  • Full Year FY24 Revenue Guidance of $34.5 Billion to $34.7 Billion, up ~10% Y/Y
  • Full Year FY24 GAAP Operating Margin Guidance of ~10.8%
  • Full Year FY24 Non-GAAP Operating Margin Guidance of ~27.0%
  • Full Year FY24 Operating Cash Flow Guidance of ~15 - 16% growth Y/Y
  • Q1 FY24 Non-GAAP Earnings per Share Guidance $1.60 - $1.61

Challenges Ahead

  • 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 future acquisitions or other transactions.
  • Operating Cash Flow Growth guidance includes an estimated 14% headwind associated with charges from restructuring.
  • The impact of future gains or losses from the company’s strategic investment portfolio could be material.
  • The Company's projected GAAP and Non-GAAP diluted earnings per share assumes no change to the value of our strategic investment portfolio as it is not possible to forecast future gains and losses.

Revenue & Expenses

Visualization of income flow from segment revenue to net income