Summary
Salesforce, Inc.'s 2018 10-K filing reveals a company experiencing robust growth, with total revenues increasing by 25% year-over-year to $10.5 billion, primarily driven by a 25% surge in subscription and support revenues. The company's strategy focuses on cross-selling and upselling to existing customers, expanding its service offerings, strengthening its partner ecosystem, and international growth. Salesforce continues to invest heavily in research and development and marketing and sales to maintain its competitive edge. Despite significant investments in these areas and the costs associated with acquisitions, Salesforce demonstrates a commitment to improving operating margins. Key financial highlights include strong revenue growth, a healthy balance sheet with substantial cash reserves, and positive operating cash flow. While the company faces competition and manages various risks associated with its cloud-based business model, its diversified service portfolio and strategic growth initiatives position it for continued expansion in the enterprise cloud computing market.
Financial Highlights
54 data points| Revenue | $10.54B |
| Cost of Revenue | $2.77B |
| Gross Profit | $7.77B |
| R&D Expenses | $1.55B |
| Operating Expenses | $7.31B |
| Operating Income | $454.00M |
| Interest Expense | $54.00M |
| Net Income | $360.00M |
| EPS (Basic) | $0.50 |
| EPS (Diluted) | $0.49 |
| Shares Outstanding (Basic) | 715.00M |
| Shares Outstanding (Diluted) | 735.00M |
Key Highlights
- 1Total revenues grew 25% to $10.5 billion in fiscal year 2018.
- 2Subscription and support revenues increased 25% to $9.7 billion, comprising 93% of total revenues.
- 3Professional services and other revenues grew 21% to $769.5 million.
- 4Marketing and sales expenses represented 46% of total revenues, indicating continued investment in growth.
- 5Research and development expenses increased to 15% of total revenues, reflecting ongoing innovation efforts.
- 6The company reported net income of $127.5 million for fiscal year 2018, a decrease from $179.6 million in fiscal 2017, impacted by increased operating expenses and a change in tax provision.
- 7Cash, cash equivalents, and marketable securities totaled $4.5 billion at the end of fiscal year 2018.