NYSE$CRM

Salesforce Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Salesforce's Q3 2024 results were announced, demonstrating strong revenue and profitability growth.

Salesforce reported a strong third quarter in fiscal year 2024, with revenue reaching $8.72 billion, an 11% year-over-year increase. The company's GAAP operating margin was 17.2%, and non-GAAP operating margin was 31.2%. GAAP diluted EPS was $1.25, and non-GAAP diluted EPS was $2.11. Salesforce also returned $1.9 billion to stockholders through share repurchases.

  • Revenue reached $8.72 billion, up 11% year-over-year.
  • GAAP operating margin was 17.2%, and non-GAAP operating margin was 31.2%.
  • GAAP diluted EPS was $1.25, and non-GAAP diluted EPS was $2.11.
  • Current remaining performance obligation increased by 14% year-over-year to $23.9 billion.

Headline financials

Total Revenue

$8.72B

Previous: $7.84B+11.3%
EPS (adj)

$2.11

Previous: $1.40+50.7%
Remaining Performance Obligation

$23.9B

Previous: $20.9B+14.4%
Capital Expenditures

-$166M

Previous: -$198M+16.2%
Free Cash Flow

$1.37B

Previous: $115M+1087.8%
Net Income

$1.22B

Previous: $210M+482.9%
Operating Income

$1.5B

Previous: $460M+226.3%
Gross Profit

$6.57B

Previous: $5.75B+14.2%
Cash & Equivalents

$6.45B

Previous: $6.08B+6.2%
Total Assets

$91B

Previous: $91.9B-0.9%
R&D Expense

$1.2B

No prior period
Stock-Based Comp

$693M

Previous: $843M-17.8%

Revenue & EPS history

Salesforce · Revenue · Quarterly

$8.72B

Q3 2024+11.3%vs Q3 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Salesforce · $6.9B total across 4 segments · Q3 2024

  • Agentforce Service
    $2.07B+11.7%
  • Agentforce Sales
    $1.91B+11.0%
  • Agentforce 360 Platform
    $1.69B+11.4%
  • Agentforce Marketing & Commerce
    $1.23B+8.9%

Forward guidance

Salesforce initiates Q4 FY24 revenue guidance of $9.18B to $9.23B, up 10% Y/Y, and narrows full year FY24 revenue guidance to $34.75B to $34.8B, up 11% Y/Y. Raises full year FY24 GAAP operating margin guidance to 14.5% and non-GAAP operating margin guidance to 30.5%.

Tailwinds

  • Q4 FY24 Revenue Guidance: $9.18 - $9.23 Billion, up 10% Y/Y
  • Full Year FY24 Revenue Guidance: $34.75 - $34.8 Billion, up 11% Y/Y
  • Full Year FY24 GAAP Operating Margin Guidance: 14.5%
  • Full Year FY24 Non-GAAP Operating Margin Guidance: 30.5%
  • Full Year FY24 Operating Cash Flow Growth Guidance: 30% - 33% Y/Y

Headwinds

  • Operating Cash Flow Growth guidance includes an estimated 14% - 16% headwind from charges associated with restructuring plan.
  • Guidance assumes no change to the value of the Company's strategic investment portfolio.
  • GAAP tax rates may fluctuate due to discrete tax items.
  • Current Remaining Performance Obligation Growth (Y/Y) is impacted by FX (~1 pt).
  • Revenue FX impact is calculated by taking the current period rates compared to the prior period average rates.

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 2024

Historical avgQ3 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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