NYSE$CRM

Salesforce Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Salesforce's Q1 2024 earnings exceeded expectations, driven by strong revenue growth and significant margin expansion.

Salesforce reported strong first-quarter results for fiscal year 2024, with revenue reaching $8.25 billion, an 11% increase year-over-year. The company's GAAP operating margin was 5.0%, while the non-GAAP operating margin was 27.6%. GAAP EPS was $0.20, and non-GAAP EPS was $1.69. Salesforce also returned $2.1 billion to stockholders through share repurchases.

  • Revenue reached $8.25 billion, up 11% year-over-year.
  • GAAP operating margin was 5.0%, and non-GAAP operating margin was 27.6%.
  • GAAP EPS was $0.20, and non-GAAP EPS was $1.69.
  • Current remaining performance obligation was $24.1 billion, up 12% year-over-year.

Headline financials

Total Revenue

$8.25B

Previous: $7.41B+11.3%
EPS (adj)

$1.69

Previous: $0.98+72.4%
Remaining Performance Obligation

$46.7B

No prior period
Capital Expenditures

-$243M

Previous: -$179M-35.8%
Free Cash Flow

$4.25B

Previous: $3.5B+21.5%
Net Income

$199M

Previous: $28M+610.7%
Operating Income

$412M

Previous: $20M+1960.0%
Gross Profit

$6.12B

Previous: $5.37B+14.1%
Cash & Equivalents

$9.16B

Previous: $6.86B+33.5%
Total Assets

$93.5B

Previous: $93B+0.6%
Stock-Based Comp

$696M

Previous: $776M-10.3%

Revenue & EPS history

Salesforce · Revenue · Quarterly

$8.25B

Q1 2024+11.3%vs Q1 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Salesforce · $6.51B total across 4 segments · Q1 2024

  • Agentforce Service
    $1.96B
  • Agentforce Sales
    $1.81B
  • Agentforce 360 Platform
    $1.57B
  • Agentforce Marketing & Commerce
    $1.17B

Forward guidance

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

Tailwinds

  • Second Quarter FY24 Revenue Guidance of $8.51 Billion to $8.53 Billion, up ~10% Y/Y
  • Reiterates Full Year FY24 Revenue Guidance of $34.5 Billion to $34.7 Billion, up ~10% Y/Y
  • Raises Full Year FY24 GAAP Operating Margin Guidance to ~11.4%
  • Raises Full Year FY24 Non-GAAP Operating Margin Guidance to ~28.0%
  • Second Quarter FY24 Non-GAAP Earnings per Share of $1.89 - $1.90

Headwinds

  • Operating Cash Flow Growth guidance includes an estimated 14% - 16% headwind associated with charges from restructuring.
  • 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 discrete tax items and related effects in conjunction with certain provisions in the Tax Cuts and Jobs Act, future acquisitions or other transactions.
  • Uncertainties regarding the impact of expensing stock options and other equity awards
  • Uncertainties affecting our ability to estimate our tax rate

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.9%

Avg return

Earnings day

+0.8%

Avg return

5 days after

-0.5%

Avg return

30 days after

51%

37 / 72 earnings

Positive

+30.6%

Q2 2021

Best reaction

-19.2%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027
Q4 2026+5.0%+2.2%-6.5%
Q3 2026-1.7%+9.3%+6.2%
Q2 2026-0.5%-1.7%-6.3%
Q1 2026-2.8%-4.2%-0.9%
Q4 2025-4.0%-6.5%-12.2%
Q3 2025+11.1%+9.4%-0.1%
Q2 2025-2.7%-4.3%+4.7%
Q1 2025-19.2%-12.3%-4.7%
Q4 2024+3.1%+5.1%+0.6%
Q3 2024+12.0%+11.4%+17.0%
Q2 2024+4.5%+4.5%-4.3%
Q1 2024-2.7%-4.1%-3.5%
Q4 2023+14.0%+12.3%+22.1%
Q3 2023-3.1%-11.7%-12.6%
Q2 2023-1.2%-9.0%-16.5%
Q1 2023+6.6%+12.0%-0.0%
Q4 2022-0.1%-3.6%+0.9%
Q3 2022-15.2%-12.9%-14.0%
Q2 2022+3.1%+2.0%+10.0%
Q1 2022+3.7%+2.8%+5.3%
Q4 2021-10.0%-11.2%-13.0%
Q3 2021-10.2%-8.1%-9.5%
Q2 2021+30.6%+30.0%+14.0%
Q1 2021-1.0%-1.3%+3.7%
Q4 2020-3.8%-8.4%-16.8%
Q3 2020-2.8%-1.9%+3.7%
Q2 2020+2.8%+4.2%+5.3%
Q1 2020+9.2%+11.1%+7.2%
Q4 2019-4.6%-5.8%-1.2%
Q3 2019+11.3%+12.9%+7.0%
Q2 2019-0.6%-0.2%+3.9%
Q1 2019+1.0%+2.0%+5.6%
Q4 2018+2.5%+5.2%-0.1%
Q3 2018-0.5%-0.2%-3.5%
Q2 2018+1.4%+2.6%+3.4%
Q1 2018-0.5%+0.7%-2.1%
Q4 2017+2.8%+0.8%+1.3%
Q3 2017+6.1%+3.1%-4.7%
Q2 2017-4.9%-5.9%-10.6%
Q1 2017+5.6%
Q4 2016+10.4%
Q3 2016+4.4%
Q2 2016-4.0%
Q1 2016+2.0%
Q4 2015+13.4%
Q3 2015-6.7%
Q2 2015+8.0%
Q1 2015-5.7%
Q4 2014-2.1%
Q3 2014-8.0%
Q2 2014+14.8%
Q1 2014-5.5%
Q4 2013+9.0%
Q3 2013+7.8%
Q2 2013-0.1%
Q1 2013+0.4%
Q4 2012+12.1%
Q3 2012-13.9%
Q2 2012-12.1%
Q1 2012+0.3%
Q4 2011+6.4%
Q3 2011+2.3%
Q2 2011-2.0%
Q1 2010-2.4%
Q1 2011-2.4%
Q4 2008+0.7%
Q4 2010+0.7%
Q3 2009-3.4%
Q3 2010-3.4%
Q2 2010+0.2%
Q4 2009+0.2%
Q2 2009+0.2%

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