Salesforce, the famous B2B CRM & cloud solution, has released its financial results for the first quarter, showcasing impressive growth in both revenue and performance. The company experienced a remarkable 11 percent year-on-year increase in revenue, amounting to a total of $8.25 billion (€7.7 billion), with a 13 percent growth in constant currency. The GAAP operating margin for the quarter was recorded at 5.0 percent, while the non-GAAP operating margin reached an impressive 27.6 percent.
Breaking Salesforce Q1 2023 Records
Furthermore, the remaining performance obligation exhibited a significant growth of 12 percent year-on-year, reaching an impressive $24.1 billion (€22.5 billion). The earnings per share for the quarter were reported to be $0.20 (approximately €0.19).
During this period, shareholders were delighted to receive a substantial return of $2.1 billion (€1.9 billion) through share repurchases. Looking ahead, Salesforce has projected a revenue range of $8.51 billion to $8.53 billion (€7.94 billion to €7.96 billion) for the second quarter of the fiscal year 2024, indicating an anticipated growth of almost 10 percent year-on-year.
Maintaining a positive outlook, the company has reiterated its revenue expectation for the entire fiscal year 2024, projecting a range of $34.5 billion to $34.7 billion (€32.2 billion and €32.4 billion). Salesforce’s CEO, Marc Benioff, expressed satisfaction with the company’s exceptional performance, highlighting the noteworthy year-on-year increase of 1000 basis points in the margin for the quarter.
Driven by their commitment to innovation, Salesforce has revised its FY24 non-GAAP operating margin guidance, anticipating a significant growth of 550 basis points compared to the previous year. The company’s focus remains on pioneering the integration of reliable and secure generative AI, with the inclusion of tools like Einstein GPT, Slack GPT, and Tableau GPT in their esteemed product portfolio, particularly in the realm of CRM.
Positive outlook
Additional highlights from the report include a 22 percent year-on-year increase in operating cash flow, totaling $4.49 billion (€4.19 billion), as well as a 21 percent year-on-year increase in free cash flow, reaching an impressive $4.25 billion (€3.96 billion). Salesforce’s remaining performance obligation experienced a robust growth of 11 percent year-on-year, amounting to $46.7 billion (€43.6 billion), while the remaining performance obligation specifically reached $24.1 billion (€22.5 billion), reflecting an encouraging 12 percent increase year-on-year.
Looking forward, Salesforce remains committed to its revenue guidance for the entire fiscal year 2024 while adjusting its GAAP and non-GAAP EPS, GAAP and non-GAAP operating margin, and operating cash flow guidance to ensure continued success. For more comprehensive details, please see the official press release issued by Salesforce. Want to know more about financial C-level metrics? Read this article.