Early Access

10-KPeriod: FY2021

Salesforce, Inc. Annual Report, Year Ended Jan 31, 2021

Filed March 17, 2021For Securities:CRM

Summary

Salesforce, Inc. demonstrated robust revenue growth in fiscal year 2021, reporting $21.3 billion in total revenue, a 24% increase year-over-year. This growth was primarily driven by subscription and support services, which constitute the vast majority of their revenue. The company successfully navigated the challenges presented by the COVID-19 pandemic, with new business growth resuming at historical trends after a slight Q1 dip. Significant strategic moves during the year included the acquisition of Vlocity and the announcement of the pending acquisition of Slack Technologies, Inc., signaling continued investment in expanding their Customer 360 platform and market reach. Financially, Salesforce reported diluted earnings per share of $4.38, significantly boosted by a one-time tax benefit and gains from strategic investments. Operating cash flow saw an 11% increase, reaching $4.8 billion, and the company ended the fiscal year with a strong cash position of $12.0 billion. The company's Remaining Performance Obligation (RPO) also showed healthy growth, increasing by 17% year-over-year to $36.1 billion, indicating a strong pipeline of future contracted revenue.

Financial Statements
Beta
Revenue$21.25B
Cost of Revenue$5.44B
Gross Profit$15.81B
R&D Expenses$3.60B
Operating Expenses$15.36B
Operating Income$455.00M
Interest Expense$110.00M
Net Income$4.07B
EPS (Basic)$4.48
EPS (Diluted)$4.38
Shares Outstanding (Basic)908.00M
Shares Outstanding (Diluted)930.00M

Key Highlights

  • 1Revenue grew by 24% year-over-year to $21.3 billion in fiscal year 2021, driven by subscription and support services.
  • 2Diluted EPS was $4.38, significantly improved from the prior year, aided by a $2.0 billion discrete tax benefit and $1.7 billion in unrealized gains from strategic investments.
  • 3Operating cash flow increased by 11% to $4.8 billion, demonstrating strong operational cash generation.
  • 4Remaining Performance Obligation (RPO) reached $36.1 billion, up 17% year-over-year, indicating a robust future revenue pipeline.
  • 5The company completed the acquisition of Vlocity for $1.4 billion and announced the pending acquisition of Slack Technologies for an estimated $15.6 billion, signaling strategic expansion.
  • 6Cash, cash equivalents, and marketable securities totaled $12.0 billion at the end of the fiscal year, providing ample liquidity.
  • 7No single customer accounted for more than 5% of revenues, indicating a diversified customer base.

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