Total Remaining Performance Obligation $63B,
up 11% Y/Y; Operating Cash Flow $13B, up 28% Y/Y
Salesforce (NYSE: CRM), the world's #1 AI CRM, today announced
results for its fourth quarter and full fiscal year ended January
31, 2025.
FY25 Agentforce & Data
Cloud
- $900 million Data Cloud & AI annual recurring revenue,
up 120% year-over-year ("Y/Y")
- Since October, closed 5,000 Agentforce deals, including more
than 3,000 paid
- Data Cloud surpassed 50 trillion records, which doubled
Y/Y
- Nearly half of the Fortune 100 are both AI & Data Cloud
customers, and all of our top 10 wins in Q4 included Data and
AI
- On help.salesforce.com, Agentforce has handled 380,000
conversations, achieving an 84% resolution rate, with only 2% of
the requests requiring human escalation
FY25 Results
- Fourth quarter revenue of $10.0 billion, up 8% Y/Y, up 9% in
constant currency ("CC"), inclusive of subscription & support
revenue of $9.5 billion, up 8% Y/Y, up 9% in CC
- Current remaining performance obligation of $30.2 billion,
up 9% Y/Y, up 11% in CC
- Total remaining performance obligation of $63.4 billion, up
11% Y/Y
- FY25 revenue of $37.9 billion, up 9% both Y/Y & in CC,
inclusive of subscription & support revenue of $35.7 billion,
up 10% both Y/Y & in CC
- FY25 GAAP operating margin of 19.0% and non-GAAP operating
margin of 33.0%
- FY25 operating cash flow of $13.1 billion, up 28% Y/Y, and
free cash flow of $12.4 billion, up 31% Y/Y
- Returned $7.8 billion in the form of share repurchases and
$1.5 billion in dividend payments to stockholders; total cash
returned to stockholders of $9.3 billion in FY25
Full Year FY26 Guidance
- Initiates revenue guidance of $40.5 billion to $40.9
billion, up 7% - 8% both Y/Y & in CC
- Initiates subscription & support revenue growth guidance
of approximately 8.5% Y/Y & approximately 9% in CC
- Initiates GAAP operating margin guidance of 21.6% and
non-GAAP operating margin guidance of 34.0%
- Initiates operating cash flow growth guidance of
approximately 10% to 11% Y/Y
“We had an incredible quarter and year, with strong performance
across all our key metrics, including the highest cash flow in our
company’s history and more than $60 billion in RPO,” said Marc
Benioff, Chair and CEO, Salesforce. “No company is better
positioned than Salesforce to lead customers through the digital
labor revolution. With our deeply unified platform, seamlessly
integrating our Customer 360 apps, Data Cloud and Agentforce, we’re
already delivering unprecedented levels of productivity, efficiency
and cost savings for thousands of companies.”
“We closed out the year with strong results and our relentless
focus on profitable growth drove record-breaking revenue, margin,
and cash flow, setting a strong foundation for the company into
FY26,” said Amy Weaver, President and CFO. “Our capital return
program continued to deliver incredible value to our shareholders,
returning $21 billion since inception.”
Guidance
Our guidance includes GAAP and non-GAAP financial measures.
Q1 FY26
Guidance
Full Year FY26
Guidance
Total revenue
$9.71 - $9.76 billion
$40.5 - $40.9 billion
Y/Y growth
6% - 7%
7% - 8%
FX impact(1)
($50M) Y/Y FX
($150M) Y/Y FX
CC growth(2)
7%
7% - 8%
Subscription & support revenue growth
(Y/Y)(3)
N/A
Approximately 8.5%
CC growth(2)(3)
N/A
Approximately 9%
GAAP operating margin
N/A
21.6%
Non-GAAP operating margin(2)
N/A
34.0%
GAAP diluted net income per share(2)
$1.49 - $1.51
$6.95 - $7.03
Non-GAAP diluted net income per
share(2)
$2.53 - $2.55
$11.09 - $11.17
Operating cash flow growth (Y/Y)
N/A
Approximately 10% - 11%
Current remaining performance obligation
growth (Y/Y)
Approximately 10%
N/A
FX Impact(4)
($100M) Y/Y FX
N/A
(1) Revenue FX impact is calculated by
taking the current period rates compared to the prior period
average rates.
(2) Non-GAAP CC revenue growth, non-GAAP
operating margin and non-GAAP diluted net income per share are
non-GAAP financial measures. See below for an explanation of
non-GAAP financial measures. The Company's shares used in computing
GAAP diluted net income per share guidance and non-GAAP diluted net
income per share guidance excludes any impact to share count from
potential Q1 - Q4 FY26 repurchase activity under our share
repurchase program.
(3) Subscription & support revenue
excludes professional services revenue.
(4) Current remaining performance
obligation FX impact is calculated by taking the current period
rates compared to the prior period ending rates.
The following is a reconciliation of GAAP operating margin
guidance to non-GAAP operating margin guidance for the full
year:
Full Year FY26
Guidance
GAAP operating margin(1)
21.6%
Plus
Amortization of purchased
intangibles(2)
3.7%
Stock-based compensation expense(2)(3)
8.4%
Restructuring(2)(3)
0.3%
Non-GAAP operating margin(1)
34.0%
(1) GAAP operating margin is the
proportion of GAAP income from operations as a percentage of GAAP
revenue. Non-GAAP operating margin is the proportion of non-GAAP
income from operations as a percentage of GAAP revenue.
(2) The percentages shown above have been
calculated based on the midpoint of the low and high ends of the
revenue guidance for full year FY26.
(3) The percentages shown in the
restructuring line have been calculated based on charges associated
with the Company's restructuring initiatives. Stock-based
compensation expense excludes stock-based compensation expense
related to the Company's restructuring initiatives, which is
included in the restructuring line.
The following is a per share reconciliation of GAAP diluted net
income per share to non-GAAP diluted net income per share guidance
for the next quarter and the full year:
Fiscal 2026
Q1
FY26
GAAP diluted net income per share
range(1)(2)
$1.49 - $1.51
$6.95 - $7.03
Plus
Amortization of purchased intangibles
$
0.39
$
1.54
Stock-based compensation expense
$
0.86
$
3.47
Restructuring(3)
$
0.03
$
0.13
Less
Income tax effects and adjustments(4)
$
(0.24
)
$
(1.00
)
Non-GAAP diluted net income per
share(2)
$2.53 - $2.55
$11.09 - $11.17
Shares used in computing basic net income
per share (millions)(5)
965
973
Shares used in computing diluted net
income per share (millions)(5)
980
985
(1) The Company's GAAP tax provision is
expected to be approximately 23.5% for the three months ended April
30, 2025 and approximately 23.5% for the year ended January 31,
2026. 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.
(2) The Company's projected GAAP and
non-GAAP diluted net income per share assumes no change to the
value of our strategic investment portfolio as it is not possible
to forecast future gains and losses. The impact of future gains or
losses from the Company’s strategic investment portfolio could be
material.
(3) The estimated impact to GAAP diluted
net income per share is in connection with the Company's
restructuring initiatives.
(4) The Company’s non-GAAP tax provision
uses a long-term projected tax rate of 22.0%, which reflects
currently available information and could be subject to change.
(5) The Company's shares used in computing
GAAP net income per share guidance and non-GAAP net income per
share guidance excludes any impact to share count from potential Q1
- Q4 FY26 repurchase activity under our share repurchase
program.
For additional information regarding non-GAAP financial measures
see the reconciliation of results and related explanations
below.
Management will provide further commentary around these guidance
assumptions on its earnings call.
Product Releases and Enhancements
Three times a year Salesforce delivers new product releases,
services, or enhancements to current products and services. These
releases are a result of significant research and development
investments made over multiple years, designed to help customers
drive cost savings, boost efficiency, and build trust.
To learn more about our newest innovations and product release
highlights, including our latest Spring 2025 Product Release,
visit: www.salesforce.com/releases.
Environmental, Social, and Governance (ESG) Strategy
To learn more about our latest initiatives and priorities,
review our Stakeholder Impact Report:
https://salesforce.com/stakeholder-impact-report.
Quarterly Conference Call
Salesforce plans to host a conference call at 2:00 p.m. (PT) /
5:00 p.m. (ET) to discuss its financial results with the investment
community. A live webcast and replay details of the event will be
available on the Salesforce Investor Relations website at
www.salesforce.com/investor.
About Salesforce
Salesforce helps organizations of any size reimagine their
business for the world of AI. With Agentforce, Salesforce's trusted
platform, organizations can bring humans together with agents to
drive customer success—powered by AI, data, and action. Visit
www.salesforce.com for more information.
"Safe harbor" statement under the Private Securities Litigation
Reform Act of 1995: This press release contains forward-looking
statements about the Company's financial and operating results and
guidance, which include, but are not limited to, expected GAAP and
non-GAAP financial and other operating and non-operating results,
including revenue, net income, net income per share, operating cash
flow growth, operating margin, expected revenue growth, expected
foreign currency exchange rate impact, expected current remaining
performance obligation growth, expected tax rates or provisions,
stock-based compensation expenses, amortization of purchased
intangibles, shares outstanding, market growth, strategic
investments, expected restructuring expense or charges and expected
timing of product releases and enhancements. The achievement or
success of the matters covered by such forward-looking statements
involves risks, uncertainties and assumptions. If any such risks or
uncertainties materialize or if any of the assumptions prove
incorrect, the Company’s results or outcomes could differ
materially and adversely from those expressed or implied by our
forward-looking statements. Readers are cautioned not to place
undue reliance on such forward-looking statements.
The risks and uncertainties referred to above include -- but are
not limited to -- risks associated with:
- our ability to maintain sufficient security levels and service
performance, avoid downtime and prevent, detect and remediate
performance degradation and security breaches;
- our ability to secure sufficient data center capacity;
- our reliance on third-party infrastructure providers, including
hardware, software and platform providers and the organizations
responsible for the development and maintenance of the
infrastructure of the Internet;
- uncertainties regarding AI technologies and their integration
into our product offerings;
- the evolving landscape related to environmental, social and
governance (“ESG”) matters;
- the effect of evolving government regulations, including those
related to our industry and providing services on or accessing the
Internet, and those addressing ESG matters, data privacy,
cybersecurity, cross-border data transfers, government contracting
and procurement, and import and export controls;
- current and potential litigation and regulatory investigations
involving us or our industry;
- our ability to successfully expand or introduce new services
and product features, including related to AI and Agentforce;
- our ability to successfully complete, integrate and realize the
benefits from acquisitions or other strategic transactions;
- uncertainties regarding the pace of change and innovation and
our ability to compete in the markets in which we participate;
- our ability to successfully execute our business strategy and
our business plans, including efforts to expand internationally and
related risks;
- our ability to predict and meet expectations regarding our
operating results and cash flows, including revenue and remaining
performance obligation, including as a result of the seasonal
nature of our sales cycle and the variability in our results
arising from the accounting for term license revenue products and
some complex transactions;
- our ability to predict and limit customer attrition and costs
related to those efforts;
- the demands on our personnel and infrastructure resulting from
significant growth in our customer base and operations, including
as a result of acquisitions;
- our real estate and office facilities strategy and related
costs and uncertainties;
- the performance of our strategic investment portfolio,
including fluctuations in the fair value of our investments;
- our ability to protect our intellectual property rights;
- our ability to maintain and enhance our brands;
- uncertainties regarding the valuation and potential
availability of certain tax assets;
- the impact of new accounting pronouncements and tax laws;
- uncertainties affecting our ability to estimate our tax rate,
including our tax obligations in connection with potential
jurisdictional transfer of intellectual property;
- uncertainties regarding the effect of geopolitical events,
inflationary pressures, market and macroeconomic volatility,
financial institution instability, changes in monetary policy,
foreign currency exchange rate and interest rate fluctuations,
uncertainty regarding the imposition of and changes in trade
policies, including trade wars, tariffs or other trade restrictions
or the threat of such actions and climate change, natural disasters
and actual or threatened public health emergencies on our
workforce, business, and operating results;
- uncertainties regarding the impact of expensing stock options
and other equity awards;
- the sufficiency of our capital resources, including our ability
to execute our share repurchase program and declare future cash
dividends;
- our ability to comply with our debt covenants and lease
obligations; and
- uncertainties regarding impacts to our workforce and workplace
culture, such as those arising from our current and future office
environments or remote work policies or our ability to realize the
expected benefits of the restructuring plan.
Further information on these and other factors that could affect
the Company’s actual results or outcomes is included in the reports
on Forms 10-K, 10-Q and 8-K and in other filings it makes with the
Securities and Exchange Commission from time to time. These
documents are available on the SEC Filings section of the
Financials section of the Company’s website at
http://investor.salesforce.com/financials/.
Salesforce, Inc. assumes no obligation and does not intend to
revise or update publicly any forward-looking statements for any
reason, except as required by law.
© 2025 Salesforce, Inc. All rights reserved. Salesforce and
other marks are trademarks of Salesforce, Inc. Other brands
featured herein may be trademarks of their respective owners.
Salesforce, Inc.
Consolidated Statements of
Operations
(in millions, except per share
data)
(Unaudited)
Three Months Ended January
31,
Fiscal Year Ended January
31,
2025
2024
2025
2024
Revenues:
Subscription and support
$
9,451
$
8,748
$
35,679
$
32,537
Professional services and other
542
539
2,216
2,320
Total revenues
9,993
9,287
37,895
34,857
Cost of revenues (1)(2):
Subscription and support
1,581
1,581
6,198
6,177
Professional services and other
636
567
2,445
2,364
Total cost of revenues
2,217
2,148
8,643
8,541
Gross profit
7,776
7,139
29,252
26,316
Operating expenses (1)(2):
Research and development
1,420
1,275
5,493
4,906
Sales and marketing
3,471
3,437
13,257
12,877
General and administrative
767
632
2,836
2,534
Restructuring
298
173
461
988
Total operating expenses
5,956
5,517
22,047
21,305
Income from operations
1,820
1,622
7,205
5,011
Gains (losses) on strategic investments,
net
96
(35
)
(121
)
(277
)
Other income
72
58
354
216
Income before provision for income
taxes
1,988
1,645
7,438
4,950
Provision for income taxes
(280
)
(199
)
(1,241
)
(814
)
Net income
$
1,708
$
1,446
$
6,197
$
4,136
Basic net income per share
$
1.78
$
1.49
$
6.44
$
4.25
Diluted net income per share (3)
$
1.75
$
1.47
$
6.36
$
4.20
Shares used in computing basic net income
per share
959
970
962
974
Shares used in computing diluted net
income per share
974
983
974
984
(1) Amounts include amortization of
intangible assets acquired through business combinations, as
follows:
Three Months Ended January
31,
Fiscal Year Ended January
31,
2025
2024
2025
2024
Cost of revenues
$
150
$
235
$
750
$
978
Sales and marketing
232
223
901
891
(2) Amounts include stock-based
compensation expense, as follows:
Three Months Ended January
31,
Fiscal Year Ended January
31,
2025
2024
2025
2024
Cost of revenues
$
132
$
107
$
518
$
431
Research and development
277
237
1,091
972
Sales and marketing
294
247
1,205
1,062
General and administrative
100
76
367
299
Restructuring
0
7
2
23
(3) During the three months ended January
31, 2025 and 2024, gains (losses) on strategic investments impacted
GAAP diluted net income per share by $0.07 and $(0.03) based on a
U.S. tax rate of 24.0% and 24.5%, respectively, and non-GAAP
diluted net income per share by $0.08 and $(0.03) based on a
non-GAAP tax rate of 22.0% and 23.5%, respectively. During the
fiscal year ended January 31, 2025 and 2024, losses on strategic
investments impacted GAAP diluted net income per share by $(0.09)
and $(0.21) based on a U.S. tax rate of 24.0% and 24.5%,
respectively, and non-GAAP diluted net income per share by $(0.10)
and $(0.22) based on a non-GAAP tax rate of 22.0% and 23.5%,
respectively.
Salesforce, Inc.
Consolidated Statements of
Operations
(As a percentage of total
revenues)
(Unaudited)
Three Months Ended January
31,
Fiscal Year Ended January
31,
2025
2024
2025
2024
Revenues:
Subscription and support
95
%
94
%
94
%
93
%
Professional services and other
5
6
6
7
Total revenues
100
100
100
100
Cost of revenues (1)(2):
Subscription and support
16
17
16
18
Professional services and other
6
6
7
7
Total cost of revenues
22
23
23
25
Gross profit
78
77
77
75
Operating expenses (1)(2):
Research and development
14
13
15
14
Sales and marketing
35
37
35
37
General and administrative
8
7
7
7
Restructuring
3
2
1
3
Total operating expenses
60
59
58
61
Income from operations
18
18
19
14
Gains (losses) on strategic investments,
net
1
(1
)
0
(1
)
Other income
1
1
1
1
Income before provision for income
taxes
20
18
20
14
Provision for income taxes
(3
)
(2
)
(4
)
(2
)
Net income
17
%
16
%
16
%
12
%
(1) Amounts include amortization of
intangible assets acquired through business combinations as a
percentage of total revenues, as follows:
Three Months Ended January
31,
Fiscal Year Ended January
31,
2025
2024
2025
2024
Cost of revenues
2
%
3
%
2
%
3
%
Sales and marketing
2
2
2
2
(2) Amounts include stock-based
compensation expense as a percentage of total revenues, as
follows:
Three Months Ended January
31,
Fiscal Year Ended January
31,
2025
2024
2025
2024
Cost of revenues
1
%
1
%
1
%
1
%
Research and development
3
3
3
3
Sales and marketing
3
3
3
3
General and administrative
1
0
1
1
Restructuring
0
0
0
0
Salesforce, Inc.
Condensed Consolidated Balance
Sheets
(in millions)
January 31, 2025
January 31, 2024
Assets
(unaudited)
Current assets:
Cash and cash equivalents
$
8,848
$
8,472
Marketable securities
5,184
5,722
Accounts receivable, net
11,945
11,414
Costs capitalized to obtain revenue
contracts, net
1,971
1,905
Prepaid expenses and other current
assets
1,779
1,561
Total current assets
29,727
29,074
Property and equipment, net
3,236
3,689
Operating lease right-of-use assets,
net
2,157
2,366
Noncurrent costs capitalized to obtain
revenue contracts, net
2,475
2,515
Strategic investments
4,852
4,848
Goodwill
51,283
48,620
Intangible assets acquired through
business combinations, net
4,428
5,278
Deferred tax assets and other assets,
net
4,770
3,433
Total assets
$
102,928
$
99,823
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable, accrued expenses and
other liabilities
$
6,658
$
6,111
Operating lease liabilities, current
579
518
Unearned revenue
20,743
19,003
Debt, current
0
999
Total current liabilities
27,980
26,631
Noncurrent debt
8,433
8,427
Noncurrent operating lease liabilities
2,380
2,644
Other noncurrent liabilities
2,962
2,475
Total liabilities
41,755
40,177
Stockholders’ equity:
Common stock
1
1
Treasury stock, at cost
(19,507
)
(11,692
)
Additional paid-in capital
64,576
59,841
Accumulated other comprehensive loss
(266
)
(225
)
Retained earnings
16,369
11,721
Total stockholders’ equity
61,173
59,646
Total liabilities and stockholders’
equity
$
102,928
$
99,823
Salesforce, Inc.
Consolidated Statements of Cash
Flows
(in millions)
(Unaudited)
Three Months Ended January
31,
Fiscal Year Ended January
31,
2025
2024
2025
2024
Operating activities:
Net income
$
1,708
$
1,446
$
6,197
$
4,136
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization (1)
877
953
3,477
3,959
Amortization of costs capitalized to
obtain revenue contracts, net
527
497
2,095
1,925
Stock-based compensation expense
803
674
3,183
2,787
(Gains) losses on strategic investments,
net
(96
)
35
121
277
Changes in assets and liabilities, net of
business combinations:
Accounts receivable, net
(7,171
)
(6,564
)
(490
)
(659
)
Costs capitalized to obtain revenue
contracts, net
(1,016
)
(966
)
(2,121
)
(1,872
)
Prepaid expenses and other current assets
and other assets
(232
)
(93
)
(1,495
)
(843
)
Accounts payable and accrued expenses and
other liabilities
1,592
1,129
1,089
(478
)
Operating lease liabilities
(161
)
(147
)
(548
)
(621
)
Unearned revenue
7,139
6,439
1,584
1,623
Net cash provided by operating
activities
3,970
3,403
13,092
10,234
Investing activities:
Business combinations, net of cash
acquired
(2,217
)
0
(2,734
)
(82
)
Purchases of strategic investments
(165
)
(106
)
(539
)
(496
)
Sales of strategic investments
8
6
126
108
Purchases of marketable securities
(1,838
)
(934
)
(6,879
)
(3,761
)
Sales of marketable securities
491
394
4,143
1,511
Maturities of marketable securities
939
319
3,378
2,129
Capital expenditures
(154
)
(147
)
(658
)
(736
)
Net cash used in investing activities
(2,936
)
(468
)
(3,163
)
(1,327
)
Financing activities:
Repurchases of common stock
(76
)
(1,692
)
(7,829
)
(7,620
)
Proceeds from employee stock plans
484
869
1,540
1,954
Principal payments on financing
obligations
(98
)
(123
)
(603
)
(629
)
Repayments of debt
0
0
(1,000
)
(1,182
)
Payments of dividends
(383
)
0
(1,537
)
0
Net cash used in financing activities
(73
)
(946
)
(9,429
)
(7,477
)
Effect of exchange rate changes
(110
)
30
(124
)
26
Net increase in cash and cash
equivalents
851
2,019
376
1,456
Cash and cash equivalents, beginning of
period
7,997
6,453
8,472
7,016
Cash and cash equivalents, end of
period
$
8,848
$
8,472
$
8,848
$
8,472
(1) Includes amortization of intangible
assets acquired through business combinations, depreciation of
fixed assets and amortization and impairment of right-of-use
assets.
Salesforce, Inc. Additional Metrics
(Unaudited)
Supplemental Revenue Analysis
Remaining Performance Obligation
Remaining performance obligation ("RPO") represents contracted
revenue that has not yet been recognized, which includes unearned
revenue and unbilled amounts that will be recognized as revenue in
future periods. RPO is influenced by several factors, including
seasonality, the timing of renewals, the timing of term license
deliveries, average contract terms and foreign currency exchange
rates. Remaining performance obligation is also impacted by
acquisitions. Unbilled portions of RPO denominated in foreign
currencies are revalued each period based on the period end
exchange rates. The portion of RPO that is unbilled is not recorded
on the condensed consolidated balance sheets.
RPO consisted of the following (in billions):
Current
Noncurrent
Total
As of January 31, 2025
$
30.2
$
33.2
$
63.4
As of October 31, 2024
26.4
26.7
53.1
As of July 31, 2024
26.5
27.0
53.5
As of April 30, 2024
26.4
27.5
53.9
As of January 31, 2024
27.6
29.3
56.9
Unearned Revenue
Unearned revenue represents amounts that have been invoiced in
advance of revenue recognition and is recognized as revenue when
transfer of control to customers has occurred or services have been
provided. The change in unearned revenue was as follows (in
millions):
Three Months Ended January
31,
Fiscal Year Ended January
31,
2025
2024
2025
2024
Unearned revenue, beginning of period
$
13,472
$
12,564
$
19,003
$
17,376
Billings and other (1)
17,355
15,834
39,513
36,370
Contribution from contract asset
(223
)
(108
)
(34
)
110
Revenue recognized over time
(9,182
)
(8,463
)
(35,628
)
(32,727
)
Revenue recognized at a point in time
(811
)
(824
)
(2,267
)
(2,130
)
Unearned revenue from business
combinations
132
0
156
4
Unearned revenue, end of period
$
20,743
$
19,003
$
20,743
$
19,003
(1) Other includes, for example, the
impact of foreign currency translation.
Disaggregation of Revenue
Subscription and Support Revenue by the Company's service
offerings
Subscription and support revenues consisted of the following (in
millions):
Three Months Ended January
31,
Fiscal Year Ended January
31,
2025
2024
2025
2024
Sales
$
2,134
$
1,969
$
8,322
$
7,580
Service
2,327
2,158
9,054
8,245
Platform and Other
1,918
1,720
7,247
6,611
Marketing and Commerce
1,357
1,274
5,281
4,912
Integration and Analytics
1,715
1,627
5,775
5,189
$
9,451
$
8,748
$
35,679
$
32,537
Total Revenue by Geographic Locations
Revenues by geographical region consisted of the following (in
millions):
Three Months Ended January
31,
Fiscal Year Ended January
31,
2025
2024
2025
2024
Americas
$
6,660
$
6,176
$
25,143
$
23,289
Europe
2,334
2,205
8,891
8,128
Asia Pacific
999
906
3,861
3,440
$
9,993
$
9,287
$
37,895
$
34,857
Constant Currency Growth Rates
Subscription and support revenues constant currency growth rates
by the Company's service offerings were as follows:
Three Months Ended
January 31, 2025 Compared to Three Months Ended
January 31, 2024
Three Months Ended
October 31, 2024 Compared to Three Months Ended
October 31, 2023
Three Months Ended
January 31, 2024 Compared to Three Months Ended
January 31, 2023
Sales
9%
11%
10%
Service
9%
10%
12%
Platform and Other
12%
8%
10%
Marketing and Commerce
8%
8%
7%
Integration and Analytics
6%
5%
21%
Total growth
9%
9%
12%
Revenue constant currency growth rates by geographical region
were as follows:
Three Months Ended
January 31, 2025 Compared to Three Months Ended
January 31, 2024
Three Months Ended
October 31, 2024 Compared to Three Months Ended
October 31, 2023
Three Months Ended
January 31, 2024 Compared to Three Months Ended
January 31, 2023
Americas
8%
6%
9%
Europe
7%
9%
11%
Asia Pacific
14%
14%
19%
Total growth
9%
8%
10%
Current remaining performance obligation constant currency
growth rates were as follows:
January 31, 2025
Compared to January 31, 2024
October 31, 2024
Compared to October 31, 2023
January 31, 2024
Compared to January 31, 2023
Total growth
11%
10%
13%
Salesforce, Inc.
GAAP Results Reconciled to Non-GAAP
Results
The following tables reflect selected GAAP
results reconciled to Non-GAAP results.
(in millions, except per share data)
(Unaudited)
Three Months Ended January
31,
Fiscal Year Ended January
31,
2025
2024
2025
2024
Non-GAAP income
from operations
GAAP income from operations
$
1,820
$
1,622
$
7,205
$
5,011
Plus:
Amortization of purchased intangibles
(1)
382
458
1,651
1,869
Stock-based compensation expense
(2)(3)
803
667
3,181
2,764
Restructuring
298
173
461
988
Non-GAAP income from operations
$
3,303
$
2,920
$
12,498
$
10,632
Non-GAAP
operating margin as a percentage of revenues
Total revenues
$
9,993
$
9,287
$
37,895
$
34,857
GAAP operating margin (4)
18.2
%
17.5
%
19.0
%
14.4
%
Non-GAAP operating margin (4)
33.1
%
31.4
%
33.0
%
30.5
%
Non-GAAP net
income
GAAP net income
$
1,708
$
1,446
$
6,197
$
4,136
Plus:
Amortization of purchased intangibles
(1)
382
458
1,651
1,869
Stock-based compensation expense
(2)(3)
803
667
3,181
2,764
Restructuring
298
173
461
988
Income tax effects and adjustments
(484
)
(493
)
(1,560
)
(1,670
)
Non-GAAP net income
$
2,707
$
2,251
$
9,930
$
8,087
Three Months Ended January
31,
Fiscal Year Ended January
31,
2025
2024
2025
2024
Non-GAAP diluted
net income per share
GAAP diluted net income per share
$
1.75
$
1.47
$
6.36
$
4.20
Plus:
Amortization of purchased intangibles
(1)
0.39
0.47
1.70
1.90
Stock-based compensation expense
(2)(3)
0.82
0.68
3.27
2.81
Restructuring
0.31
0.18
0.47
1.00
Income tax effects and adjustments
(0.49
)
(0.51
)
(1.60
)
(1.69
)
Non-GAAP diluted net income per share
$
2.78
$
2.29
$
10.20
$
8.22
Shares used in computing non-GAAP diluted
net income per share
974
983
974
984
(1) Amortization of purchased intangibles
was as follows:
Three Months Ended January
31,
Fiscal Year Ended January
31,
2025
2024
2025
2024
Cost of revenues
$
150
$
235
$
750
$
978
Sales and marketing
232
223
901
891
$
382
$
458
$
1,651
$
1,869
(2) Stock-based compensation expense,
excluding stock-based compensation expense related to
restructuring, was as follows:
Three Months Ended January
31,
Fiscal Year Ended January
31,
2025
2024
2025
2024
Cost of revenues
$
132
$
107
$
518
$
431
Research and development
277
237
1,091
972
Sales and marketing
294
247
1,205
1,062
General and administrative
100
76
367
299
$
803
$
667
$
3,181
$
2,764
(3) Stock-based compensation expense
included in the GAAP to non-GAAP reconciliation tables above
excludes stock-based compensation expense related to restructuring
activities for each of the three months ended January 31, 2025 and
2024 of $0 million and $7 million, respectively, and for the fiscal
year ended January 31, 2025 and 2024 of $2 million and $23 million,
respectively, which are included in the restructuring line.
(4) GAAP operating margin is the
proportion of GAAP income from operations as a percentage of GAAP
revenue. Non-GAAP operating margin is the proportion of non-GAAP
income from operations as a percentage of GAAP revenue. Non-GAAP
income from operations excludes the impact of the amortization of
purchased intangibles, stock-based compensation expense and charges
associated with the Company's restructuring activities.
Salesforce, Inc.
Computation of Basic and Diluted GAAP
and Non-GAAP Net Income Per Share
(in millions, except per share data)
(Unaudited)
Three Months Ended January
31,
Fiscal Year Ended January
31,
2025
2024
2025
2024
GAAP Basic Net Income Per Share
Net income
$
1,708
$
1,446
$
6,197
$
4,136
Basic net income per share
$
1.78
$
1.49
$
6.44
$
4.25
Shares used in computing basic net income
per share
959
970
962
974
Three Months Ended January
31,
Fiscal Year Ended January
31,
2025
2024
2025
2024
Non-GAAP Basic Net Income Per
Share
Non-GAAP net income
$
2,707
$
2,251
$
9,930
$
8,087
Non-GAAP basic net income per share
$
2.82
$
2.32
$
10.32
$
8.30
Shares used in computing non-GAAP basic
net income per share
959
970
962
974
Three Months Ended January
31,
Fiscal Year Ended January
31,
2025
2024
2025
2024
GAAP Diluted Net Income Per
Share
Net income
$
1,708
$
1,446
$
6,197
$
4,136
Diluted net income per share
$
1.75
$
1.47
$
6.36
$
4.20
Shares used in computing diluted net
income per share
974
983
974
984
Three Months Ended January
31,
Fiscal Year Ended January
31,
2025
2024
2025
2024
Non-GAAP Diluted Net Income Per
Share
Non-GAAP net income
$
2,707
$
2,251
$
9,930
$
8,087
Non-GAAP diluted net income per share
$
2.78
$
2.29
$
10.20
$
8.22
Shares used in computing non-GAAP diluted
net income per share
974
983
974
984
Supplemental Cash Flow
Information
Computation of Free Cash Flow, a
Non-GAAP Measure
(in millions)
(Unaudited)
Three Months Ended January
31,
Fiscal Year Ended January
31,
2025
2024
2025
2024
GAAP net cash provided by operating
activities
$
3,970
$
3,403
$
13,092
$
10,234
Capital expenditures
(154
)
(147
)
(658
)
(736
)
Free cash flow
$
3,816
$
3,256
$
12,434
$
9,498
Non-GAAP Financial Measures: This press release includes
information about non-GAAP operating margin, non-GAAP net income
per share, non-GAAP tax rates, free cash flow, constant currency
revenue, constant currency subscription and support revenue growth
rate and constant currency current remaining performance obligation
growth rates (collectively the “non-GAAP financial measures”).
These non-GAAP financial measures are measurements of financial
performance that are not prepared in accordance with U.S. generally
accepted accounting principles and computational methods may differ
from those used by other companies. Non-GAAP financial measures are
not meant to be considered in isolation or as a substitute for
comparable GAAP measures and should be read only in conjunction
with the Company’s consolidated financial statements prepared in
accordance with GAAP. Management uses both GAAP and non-GAAP
measures when planning, monitoring and evaluating the Company’s
performance.
The primary purpose of using non-GAAP measures is to provide
supplemental information that may prove useful to investors and to
enable investors to evaluate the Company’s results in the same way
management does. Management believes that supplementing GAAP
disclosure with non-GAAP disclosure provides investors with a more
complete view of the Company’s operational performance and allows
for meaningful period-to-period comparisons and analysis of trends
in the Company’s business. Further to the extent that other
companies use similar methods in calculating non-GAAP measures, the
provision of supplemental non-GAAP information can allow for a
comparison of the Company’s relative performance against other
companies that also report non-GAAP operating results.
Non-GAAP Operating Margin is the proportion of non-GAAP income
from operations as a percentage of GAAP revenue. Non-GAAP income
from operations excludes the impact of the following items:
stock-based compensation expense, amortization of
acquisition-related intangibles and charges associated with the
Company's restructuring activities. Non-GAAP net income per share
excludes, to the extent applicable, the impact of the following
items: stock-based compensation expense, amortization of purchased
intangibles, charges related to the Company's restructuring
activities and income tax adjustments. These items are excluded
because the decisions that give rise to them are not made to
increase revenue in a particular period, but instead for the
Company’s long-term benefit over multiple periods.
As described above, the Company excludes or adjusts for the
following in its non-GAAP results and guidance:
- Stock-Based Compensation Expense: The Company’s compensation
strategy includes the use of stock-based compensation expense to
attract and retain employees and executives. It is principally
aimed at aligning their interests with those of our stockholders
and at long-term employee retention, rather than to motivate or
reward operational performance for any particular period. Thus,
stock-based compensation expense varies for reasons that are
generally unrelated to operational decisions and performance in any
particular period.
- Amortization of Purchased Intangibles: The Company views
amortization of acquisition-related intangible assets, such as the
amortization of the cost associated with an acquired company’s
research and development efforts, trade names, customer lists and
customer relationships, and, in some cases, acquired lease
intangibles, as items arising from pre-acquisition activities
determined at the time of an acquisition. While these intangible
assets are continually evaluated for impairment, amortization of
the cost of purchased intangibles is a static expense, which is not
typically affected by operations during any particular period.
Although the Company excludes the amortization of purchased
intangibles from these non-GAAP measures, management believes that
it is important for investors to understand that such intangible
assets were recorded as part of purchase accounting and contribute
to revenue generation.
- Restructuring: Restructuring charges are costs associated with
a formal restructuring plan and may include employee notice period
costs and severance payments, lease or contract termination costs,
asset impairments, accelerated depreciation and amortization and
other related expenses. The Company excludes these restructuring
charges because they are distinct from ongoing operational costs
and it does not believe they are reflective of current and expected
future business performance and operating results.
- Gains (Losses) on Strategic Investments, net: The Company
records all fair value adjustments to its equity securities held
within the strategic investment portfolio through the statement of
operations. As it is not possible to forecast future gains and
losses, the Company assumes no change to the value of its strategic
investment portfolio in its GAAP and non-GAAP estimates for future
periods, including its guidance. Gains (Losses) on Strategic
Investments, net, are included in its GAAP financial
statements.
- Income Tax Effects and Adjustments: The Company utilizes a
fixed long-term projected non-GAAP tax rate in order to provide
better consistency across the interim reporting periods by
eliminating the effects of items such as changes in the tax
valuation allowance and tax effects of acquisition-related costs,
since each of these can vary in size and frequency. When projecting
this long-term rate, the Company evaluated a three-year financial
projection that excludes the direct impact of the following
non-cash items: stock-based compensation expenses and the
amortization of purchased intangibles. The projected rate also
considers factors including the Company’s expected tax structure,
its tax positions in various jurisdictions and key legislation in
major jurisdictions where the Company operates. For fiscal 2025 and
2024, the Company used a projected non-GAAP tax rate of 22.0% and
23.5%, respectively. For fiscal 2026, the Company uses a projected
non-GAAP tax rate of 22.0%, which reflects currently available
information, as well as other factors and assumptions. The non-GAAP
tax rate could be subject to change for a variety of reasons,
including the rapidly evolving global tax environment, significant
changes in the Company’s geographic earnings mix due to acquisition
activity or other changes to the Company’s strategy or business
operations. The Company will re-evaluate its long-term rate as
appropriate.
The Company presents constant currency information to provide a
framework for assessing how the Company's underlying business
performed excluding the effect of foreign currency rate
fluctuations. To present constant currency revenue growth rates,
current and comparative prior period results for entities reporting
in currencies other than United States dollars are converted into
United States dollars at the weighted average exchange rate for the
quarter being compared to rather than the actual exchange rates in
effect during that period. To present current remaining performance
obligation growth rates on a constant currency basis, current
remaining performance obligation balances in local currencies in
previous comparable periods are converted using the United States
dollar currency exchange rate as of the most recent balance sheet
date.
The Company defines the non-GAAP measure free cash flow as GAAP
net cash provided by operating activities, less capital
expenditures.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250226534533/en/
Mike Spencer Salesforce Investor Relations
investor@salesforce.com
Carolyn Guss Salesforce Public Relations 415-536-4966
pr@salesforce.com
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