Salesforce Q2 2022 Revenue Up 23%

Salesforce reported second quarter 2022 (fiscal quarter ending July 31st 2021) revenue of $6.34 Billion, up 23% Year-Over-Year, 21% in Constant Currency. Company Raises FY22 Revenue Guidance to $26.2 Billion to $26.3 Billion
Current Remaining Performance Obligation of Approximately $18.7 Billion, up 23% Year-Over-Year, 23% in Constant Currency
Second Quarter Operating Cash Flow of $0.39 Billion, down 10% Year-Over-Year
Second Quarter GAAP Operating Margin of 5.2% and Non-GAAP Operating Margin of 20.4%
Raises FY22 GAAP Operating Margin Guidance to Approximately 1.8% and Non-GAAP Operating Margin Guidance to Approximately 18.5%
Initiates Third Quarter FY22 Revenue Guidance of $6.78 Billion to $6.79 Billion, up Approximately 25% Year-Over-Year

Salesforce (NYSE: CRM), the global leader in CRM, has announced results for its second quarter of fiscal 2022 ended July 31, 2021.

“With companies and governments around the world continuing to accelerate their digital transformations, we delivered our fifth phenomenal quarter in a row,” said Marc Benioff, Chair & CEO, Salesforce. “Salesforce has never seen better execution or greater momentum. Our Customer 360 platform is now fueled by a herd of unicorns perfectly designed for this all-digital world. Sales, Service, Marketing & Commerce, Platform, Tableau, MuleSoft and now Slack are all billion dollar-plus products delivering customer success like no other company.”

“We had another remarkable quarter of top and bottom line performance, making this an impressive first half of this fiscal year,” said Amy Weaver, President and CFO. “We exceeded our financial expectations in the quarter, achieving record levels of new business, and saw strong demand across our portfolio. And we are excited to build on Slack’s momentum with the power of our two companies now together.”

Salesforce delivered the following results for its fiscal second quarter:

Revenue: Total second quarter revenue was $6.34 billion, an increase of 23% year-over-year, and 21% in constant currency. Subscription and support revenues for the quarter were $5.91 billion, an increase of 22% year-over-year. Professional services and other revenues for the quarter were $0.43 billion, an increase of 37% year-over-year.
Operating Margin: Second quarter GAAP operating margin was 5.2%. Second quarter non-GAAP operating margin was 20.4%.
Earnings per Share: Second quarter GAAP diluted earnings per share was $0.56, and non-GAAP diluted earnings per share was $1.48. Mark-to-market accounting of the company’s strategic investments benefited GAAP diluted earnings per share by $0.42 based on a U.S. tax rate of 25% and non-GAAP diluted earnings per share by $0.43 based on a non-GAAP tax rate of 21.5%.
Cash: Cash generated from operations for the second quarter was $0.39 billion, a decrease of 10% year-over-year. Total cash, cash equivalents and marketable securities ended the second quarter at $9.65 billion.
Remaining Performance Obligation: Remaining performance obligation ended the second quarter at approximately $36.2 billion, an increase of 18% year-over-year. Current remaining performance obligation ended the second quarter at approximately $18.7 billion, an increase of 23% year-over-year, 23% in constant currency.

As of August 25, 2021, the company is initiating its revenue guidance, GAAP earnings per share guidance, non-GAAP earnings per share guidance, and current remaining performance obligation growth guidance for its third quarter of fiscal year 2022. As of August 25, 2021, the company is raising its revenue guidance previously provided on December 1, 2020 and updated on February 25, 2021 and May 27, 2021 for its full fiscal year 2022. As of August 25, 2021 the company is raising its operating cash flow guidance, GAAP earnings per share guidance, non-GAAP earnings per share guidance, GAAP operating margin guidance and non-GAAP operating margin guidance previously provided on February 25, 2021 and updated on May 27, 2021 for its full fiscal year 2022.