0001108524FALSE00011085242025-02-262025-02-26

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
________________________________________________________ 
FORM 8-K
________________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
February 26, 2025
Date of Report (date of earliest event reported)
 _________________________________________________________
Salesforce, Inc.
(Exact name of registrant as specified in its charter) 
__________________________________________________________ 
 
Delaware001-3222494-3320693
(State or other jurisdiction
of incorporation)		(Commission
File Number)		(IRS Employer
Identification No.)
Salesforce Tower
415 Mission Street, 3rd Fl
San Francisco, California 94105
(Address of principal executive offices)
Registrant’s telephone number, including area code: (415) 901-7000
N/A
(Former name or former address, if changed since last report)
_________________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.001 per shareCRMNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐



Section 2 – Financial Information
Item 2.02 Results of Operations and Financial Condition.
On February 26, 2025, Salesforce, Inc. (the “Company”) issued a press release announcing its results for the fiscal quarter and fiscal year ended January 31, 2025. A copy of the press release is attached as Exhibit 99.1 to this current report on Form 8-K and is incorporated by reference herein.
The information furnished with this Item 2.02, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
Section 9 – Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
 
(d)Exhibits
99.1  
104Cover Page Interactive Data File—the cover page XBRL tags are embedded within the Inline XBRL document





Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Dated: February 26, 2025Salesforce, Inc.
/s/ Sundeep Reddy
Sundeep Reddy
Executive Vice President,
Chief Accounting Officer
(Principal Accounting Officer)


Exhibit 99.1


Salesforce Announces Fourth Quarter and Fiscal Year 2025 Results
Total Remaining Performance Obligation $63B, up 11% Y/Y; Operating Cash Flow $13B, up 28% Y/Y

SAN FRANCISCO, Calif. - February 26, 2025 - 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/AApproximately 8.5%
CC growth(2)(3)
N/AApproximately 9%
GAAP operating marginN/A21.6%
Non-GAAP operating margin(2)
N/A34.0%
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/AApproximately 10% - 11%
Current remaining performance obligation growth (Y/Y)Approximately 10%N/A
FX Impact(4)
($100M) Y/Y FXN/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.





Mike Spencer
Salesforce
Investor Relations
investor@salesforce.com

Carolyn Guss
Salesforce
Public Relations
415-536-4966
pr@salesforce.com


###

"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)
4Three Months Ended January 31,Fiscal Year Ended January 31,
2025202420252024
Revenues:
Subscription and support$9,451 $8,748 $35,679 $32,537 
Professional services and other542 539 2,216 2,320 
Total revenues9,993 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 revenues2,217 2,148 8,643 8,541 
Gross profit7,776 7,139 29,252 26,316 
Operating expenses (1)(2):
Research and development1,420 1,275 5,493 4,906 
Sales and marketing3,471 3,437 13,257 12,877 
General and administrative767 632 2,836 2,534 
Restructuring298 173 461 988 
Total operating expenses5,956 5,517 22,047 21,305 
Income from operations1,820 1,622 7,205 5,011 
Gains (losses) on strategic investments, net96 (35)(121)(277)
Other income72 58 354 216 
Income before provision for income taxes1,988 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 share959 970 962 974 
Shares used in computing diluted net income per share974 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,
 2025202420252024
Cost of revenues$150 $235 $750 $978 
Sales and marketing232 223 901 891 
(2)Amounts include stock-based compensation expense, as follows:
 Three Months Ended January 31,Fiscal Year Ended January 31,
 2025202420252024
Cost of revenues$132 $107 $518 $431 
Research and development277 237 1,091 972 
Sales and marketing294 247 1,205 1,062 
General and administrative100 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,
 2025202420252024
Revenues:
Subscription and support95 %94 %94 %93 %
Professional services and other5 6 6 7 
Total revenues100 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 revenues22 23 23 25 
Gross profit78 77 77 75 
Operating expenses (1)(2):
Research and development14 13 15 14 
Sales and marketing35 37 35 37 
General and administrative8 7 7 7 
Restructuring3 2 1 3 
Total operating expenses60 59 58 61 
Income from operations18 18 19 14 
Gains (losses) on strategic investments, net1 (1)0 (1)
Other income1 1 1 1 
Income before provision for income taxes20 18 20 14 
Provision for income taxes(3)(2)(4)(2)
Net income17 %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,
 2025202420252024
Cost of revenues2 %3 %2 %3 %
Sales and marketing2 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,
 2025202420252024
Cost of revenues1 %1 %1 %1 %
Research and development3 3 3 3 
Sales and marketing3 3 3 3 
General and administrative1 0 1 1 
Restructuring 0 0 0 0 


Salesforce, Inc.
Condensed Consolidated Balance Sheets
(in millions)
January 31, 2025January 31, 2024
Assets(unaudited)
Current assets:
Cash and cash equivalents$8,848 $8,472 
Marketable securities5,184 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 assets1,779 1,561 
Total current assets29,727 29,074 
Property and equipment, net3,236 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 investments4,852 4,848 
Goodwill51,283 48,620 
Intangible assets acquired through business combinations, net4,428 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, current0 999 
Total current liabilities27,980 26,631 
Noncurrent debt8,433 8,427 
Noncurrent operating lease liabilities2,380 2,644 
Other noncurrent liabilities 2,962 2,475 
Total liabilities41,755 40,177 
Stockholders’ equity:
Common stock1 1 
Treasury stock, at cost(19,507)(11,692)
Additional paid-in capital64,576 59,841 
Accumulated other comprehensive loss(266)(225)
Retained earnings16,369 11,721 
Total stockholders’ equity61,173 59,646 
Total liabilities and stockholders’ equity$102,928 $99,823 



Salesforce, Inc.
Consolidated Statements of Cash Flows
(in millions)
(Unaudited)
4Three Months Ended January 31,Fiscal Year Ended January 31,
2025202420252024
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, net527 497 2,095 1,925 
Stock-based compensation expense803 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 revenue7,139 6,439 1,584 1,623 
Net cash provided by operating activities3,970 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 investments8 6 126 108 
Purchases of marketable securities(1,838)(934)(6,879)(3,761)
Sales of marketable securities491 394 4,143 1,511 
Maturities of marketable securities939 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 plans484 869 1,540 1,954 
Principal payments on financing obligations (98)(123)(603)(629)
Repayments of debt0 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 equivalents851 2,019 376 1,456 
Cash and cash equivalents, beginning of period7,997 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):
 CurrentNoncurrentTotal
As of January 31, 2025$30.2 $33.2 $63.4 
As of October 31, 202426.4 26.7 53.1 
As of July 31, 202426.5 27.0 53.5 
As of April 30, 202426.4 27.5 53.9 
As of January 31, 202427.6 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,
2025202420252024
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 combinations132 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,
2025202420252024
Sales $2,134 $1,969 $8,322 $7,580 
Service 2,327 2,158 9,054 8,245 
Platform and Other1,918 1,720 7,247 6,611 
Marketing and Commerce1,357 1,274 5,281 4,912 
Integration and Analytics1,715 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,
 2025202420252024
Americas$6,660 $6,176 $25,143 $23,289 
Europe2,334 2,205 8,891 8,128 
Asia Pacific999 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
Sales9%11%10%
Service9%10%12%
Platform and Other12%8%10%
Marketing and Commerce8%8%7%
Integration and Analytics6%5%21%
Total growth9%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
Americas8%6%9%
Europe7%9%11%
Asia Pacific14%14%19%
Total growth9%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 growth11%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,
 2025202420252024
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 
Restructuring298 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 
Restructuring298 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,
2025202420252024
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 
Restructuring0.31 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 share974 983 974 984 

(1)Amortization of purchased intangibles was as follows:
 Three Months Ended January 31,Fiscal Year Ended January 31,
 2025202420252024
Cost of revenues$150 $235 $750 $978 
Sales and marketing232 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,
 2025202420252024
Cost of revenues$132 $107 $518 $431 
Research and development277 237 1,091 972 
Sales and marketing294 247 1,205 1,062 
General and administrative100 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,
 2025202420252024
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 share959 970 962 974 
 Three Months Ended January 31,Fiscal Year Ended January 31,
 2025202420252024
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 share959 970 962 974 
 Three Months Ended January 31,Fiscal Year Ended January 31,
 2025202420252024
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 share974 983 974 984 
 Three Months Ended January 31,Fiscal Year Ended January 31,
 2025202420252024
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 share974 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,
 2025202420252024
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.


v3.25.0.1
Document and Entity Information
Feb. 26, 2025
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 26, 2025
Entity Registrant Name Salesforce, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-32224
Entity Tax Identification Number 94-3320693
Entity Address, Address Line One Salesforce Tower
Entity Address, Address Line Two 415 Mission Street, 3rd Fl
Entity Address, City or Town San Francisco
Entity Address, State or Province CA
Entity Address, Postal Zip Code 94105
City Area Code 415
Local Phone Number 901-7000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.001 per share
Trading Symbol CRM
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001108524
Amendment Flag false
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