Salesforce (NYSE: CRM), the global leader in CRM, has announced results for its second quarter fiscal 2023 ended July 31, 2022.
- Revenue of $7.72 Billion, up 22% Y/Y, 26% Constant Currency (“CC”)
- GAAP Earnings per Share (“EPS”) of $0.07 and Non-GAAP EPS of $1.19
- Current Remaining Performance Obligation of $21.5 Billion, up 15% Y/Y, 19% CC
- Third Quarter FY23 Revenue Guidance of $7.82 Billion to $7.83 Billion, up ~14% Y/Y, 18% CC
- Full Year FY23 Revenue Guidance of $30.9 Billion to $31.0 Billion, up ~17% Y/Y, 20% in CC
- Full Year FY23 GAAP Operating Margin Guidance of ~3.6% and Non-GAAP Operating Margin Guidance of ~20.4%
- Full Year FY23 Operating Cash Flow Guidance of ~16-17% Y/Y
- Announces share repurchase program authorized by Board of Directors to repurchase up to $10.0 Billion
“We had another strong quarter, with revenue of $7.7B growing 22% year-over-year and 26% in constant currency, showing yet again the durability of our business model,” said Marc Benioff, Salesforce Chair and Co-CEO. “And, we’re thrilled to initiate our first-ever share repurchase program to continue to deliver incredible value to our shareholders on our path to $50 billion in revenue in FY26.”
“Our results demonstrate the strength and diversity of our product portfolio across regions, industries and segments,” said Bret Taylor, Co-CEO, Salesforce. “In this more measured buying environment, our Customer 360 portfolio is even more strategic and relevant as our customers focus on productivity, efficiency and time to value.”
“We continue to deliver disciplined, profitable growth at scale, and have a capital allocation strategy that will make us an even better positioned company for the long term,” said Amy Weaver, President and CFO, Salesforce.
Salesforce delivered the following results for its fiscal second quarter:
Revenue: Total second quarter revenue was $7.72 billion, an increase of 22% Y/Y, and 26% CC. Subscription and support revenues were $7.14 billion, an increase of 21% Y/Y. Professional services and other revenues were $0.58 billion, an increase of 35% Y/Y.
Operating Margin: Second quarter GAAP operating margin was 2.5%. Second quarter non-GAAP operating margin was 19.9%.
Earnings per Share: Second quarter GAAP diluted EPS was $0.07, and non-GAAP diluted EPS was $1.19. Mark-to-market accounting of the company’s strategic investments benefited GAAP diluted EPS by $0.03 based on a U.S. tax rate of 25% and non-GAAP diluted EPS by $0.04 based on a non-GAAP tax rate of 22%.
Cash Flow: Operating cash flow for the second quarter was $0.33 billion, a decrease of (13)% Y/Y. Free cash flow was $0.13 billion, a decrease of (24)% Y/Y.
Remaining Performance Obligation: Remaining performance obligation ended the second quarter at $41.6 billion, an increase of 15% Y/Y. Current remaining performance obligation ended at $21.5 billion, an increase of 15% Y/Y, 19% CC.
Source: Salesforce Earnings Release