NYSE$CRM

Salesforce Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Salesforce's Q3 2023 earnings showcased revenue growth and profitability.

Salesforce reported a solid third quarter with revenue reaching $7.84 billion, a 14% year-over-year increase, and GAAP EPS of $0.21 and non-GAAP EPS of $1.40. The company also returned $1.7 billion to shareholders through share repurchases.

  • Revenue reached $7.84 billion, up 14% year-over-year (19% in constant currency).
  • GAAP earnings per share was $0.21, while non-GAAP EPS reached $1.40.
  • Current remaining performance obligation was $20.9 billion, an 11% increase year-over-year (15% in constant currency).
  • The company returned $1.7 billion to shareholders through share repurchases.

Headline financials

Total Revenue

$7.84B

Previous: $6.86B+14.2%
EPS (adj)

$1.40

Previous: $1.27+10.2%
Remaining Performance Obligation

$20.9B

Previous: $18.8B+11.2%
Capital Expenditures

-$198M

Previous: -$166M-19.3%
Free Cash Flow

$115M

Previous: $238M-51.7%
Net Income

$210M

Previous: $468M-55.1%
Operating Income

$460M

Previous: $38M+1110.5%
Gross Profit

$5.75B

Previous: $5.02B+14.5%
Cash & Equivalents

$6.08B

Previous: $4.75B+27.8%
Total Assets

$91.9B

Previous: $87.4B+5.1%
Stock-Based Comp

$843M

Previous: $812M+3.8%

Revenue & EPS history

Salesforce · Revenue · Quarterly

$7.84B

Q3 2023+14.2%vs Q3 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Salesforce · $6.22B total across 4 segments · Q3 2023

  • Agentforce Service
    $1.86B
  • Agentforce Sales
    $1.72B
  • Agentforce 360 Platform
    $1.51B
  • Agentforce Marketing & Commerce
    $1.13B

Forward guidance

Salesforce provided revenue guidance for Q4 FY23 of $7.932 billion to $8.032 billion, representing an 8% to 10% year-over-year growth. Full year FY23 revenue guidance is $30.9 billion to $31.0 billion, up 17% year-over-year.

Tailwinds

  • Q4 FY23 Revenue Guidance: $7.932 - $8.032 Billion, up 8% to 10% Y/Y.
  • Full Year FY23 Revenue Guidance: $30.9 - $31.0 Billion, up 17% Y/Y.
  • Full Year FY23 GAAP Operating Margin Guidance: ~3.8%.
  • Full Year FY23 Non-GAAP Operating Margin Guidance: ~20.7%.
  • Full Year FY23 Operating Cash Flow Guidance: ~16% growth Y/Y.

Headwinds

  • Q4 FY23 Current Remaining Performance Obligation Growth (Y/Y): ~7%.
  • Revenue FX Impact: ~($900M) y/y FX.
  • Assumes no change to the value of the Company's strategic investment portfolio.
  • GAAP tax rates may fluctuate due to future acquisitions or other transactions.
  • Economic uncertainty

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 Q3 2023

Historical avgQ3 2023

+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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