NYSE$CRM

Salesforce Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Salesforce's Q4 2023 results were announced, revealing a strong quarter with revenue up 14% year-over-year and non-GAAP EPS of $1.68.

Salesforce announced strong Q4 and full fiscal year 2023 results. Q4 revenue was $8.38 billion, up 14% year-over-year. The company's GAAP loss per share was $(0.10), while non-GAAP EPS was $1.68. Salesforce provided FY24 revenue guidance of $34.5 to $34.7 billion.

  • Q4 revenue reached $8.38 billion, a 14% increase year-over-year.
  • GAAP diluted loss per share was $(0.10), while non-GAAP diluted EPS was $1.68.
  • Current remaining performance obligation was $24.6 billion, up 12% year-over-year.
  • The company returned $2.3 billion to shareholders through share repurchases in Q4.

Headline financials

Total Revenue

$8.38B

Previous: $7.33B+14.4%
EPS (adj)

$1.68

Previous: $0.84+100.0%
Remaining Performance Obligation

$48.6B

No prior period
Capital Expenditures

$218M

Previous: $167M+30.5%
Free Cash Flow

$2.57B

Previous: $1.82B+41.6%
Net Income

-$98M

Previous: -$28M-250.0%
Operating Income

$357M

Previous: -$176M+302.8%
Gross Profit

$6.28B

Previous: $5.31B+18.3%
Cash & Equivalents

$7.02B

Previous: $5.46B+28.4%
Total Assets

$98.8B

Previous: $95.2B+3.8%
Stock-Based Comp

$809M

Previous: $763M+6.0%

Revenue & EPS history

Salesforce · Revenue · Quarterly

$8.38B

Q4 2023+14.4%vs Q4 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Salesforce · $6.45B total across 4 segments · Q4 2023

  • Agentforce Service
    $1.92B
  • Agentforce Sales
    $1.79B
  • Agentforce 360 Platform
    $1.56B
  • Agentforce Marketing & Commerce
    $1.18B

Forward guidance

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

Tailwinds

  • Full Year FY24 Revenue Guidance of $34.5 Billion to $34.7 Billion, up ~10% Y/Y
  • Full Year FY24 GAAP Operating Margin Guidance of ~10.8%
  • Full Year FY24 Non-GAAP Operating Margin Guidance of ~27.0%
  • Full Year FY24 Operating Cash Flow Guidance of ~15 - 16% growth Y/Y
  • Q1 FY24 Non-GAAP Earnings per Share Guidance $1.60 - $1.61

Headwinds

  • 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 future acquisitions or other transactions.
  • Operating Cash Flow Growth guidance includes an estimated 14% headwind associated with charges from restructuring.
  • The impact of future gains or losses from the company’s strategic investment portfolio could be material.
  • The Company's projected GAAP and Non-GAAP diluted earnings per share assumes no change to the value of our strategic investment portfolio as it is not possible to forecast future gains and losses.

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 Q4 2023

Historical avgQ4 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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