Summary
Salesforce, Inc. concluded its fiscal year ended January 31, 2019, with robust revenue growth, demonstrating continued strong performance in the enterprise cloud computing market. The company's core strategy revolves around expanding its Customer Success Platform, which encompasses sales automation, customer service, marketing, commerce, and platform services, all built on a single, trusted cloud platform. Key acquisitions, including MuleSoft and Datorama, significantly bolstered its integration and marketing capabilities, contributing to a consolidated revenue increase of 26% year-over-year. Salesforce's commitment to innovation, customer success, and a strong value system, including trust and equality, underpins its growth strategy, which focuses on cross-selling, upselling, and expanding its partner ecosystem and international presence. Financially, Salesforce maintained a healthy gross profit margin and managed its operating expenses effectively, even while investing heavily in research and development and sales and marketing to fuel future growth. The company's substantial remaining performance obligation of $25.7 billion indicates strong future revenue potential. Despite significant investments in growth initiatives and acquisitions, Salesforce generated positive operating cash flow. Investors should note the company's continued focus on reinvesting revenue back into the business, its ongoing international expansion, and its strategic acquisitions as key drivers of its future financial performance.
Financial Highlights
54 data points| Revenue | $13.28B |
| Cost of Revenue | $3.45B |
| Gross Profit | $9.83B |
| R&D Expenses | $1.89B |
| Operating Expenses | $9.30B |
| Operating Income | $535.00M |
| Interest Expense | $126.00M |
| Net Income | $1.11B |
| EPS (Basic) | $1.48 |
| EPS (Diluted) | $1.43 |
| Shares Outstanding (Basic) | 751.00M |
| Shares Outstanding (Diluted) | 775.00M |
Key Highlights
- 1Total revenues increased by 26% to $13.3 billion for the fiscal year ended January 31, 2019.
- 2Subscription and support revenue, the primary revenue driver, grew by 27% to $12.4 billion.
- 3Acquisitions of MuleSoft and Datorama significantly expanded integration and marketing capabilities, contributing to overall revenue growth.
- 4Operating expenses, particularly marketing and sales (46% of revenue), and research and development, increased to support growth initiatives.
- 5The company ended the fiscal year with a strong remaining performance obligation of $25.7 billion, indicating robust future revenue.
- 6Salesforce generated positive net income of $1.11 billion, a significant increase from $360 million in the prior year.
- 7The company continues to invest in its cloud platform, AI capabilities (Einstein), and expanding its global infrastructure and go-to-market strategies.