01—Abstract
Summary
Summary of the 10-K filed March 11, 2022. Cited figures are marked; the original filing is the authoritative source.
Salesforce, Inc. (CRM) reported strong revenue growth of 25% year-over-year for fiscal year 2022, reaching $26.5 billiona, driven by continued demand for its Customer 360 platform.
The company highlighted the significant impact of its Slack acquisition, completed in July 2021, which is being integrated to create a new digital headquarters for businesses. Despite this growth, the company faced challenges, including increased operating expenses related to investments in sales, marketing, and research and development, as well as the ongoing integration of acquisitions. Cash flow from operations also saw a healthy increase of 25% year-over-year, reaching $6.0 billionb, indicating solid operational performance.
Looking ahead, Salesforce continues to focus on expanding relationships with existing customers through cross-selling and upselling, extending its global go-to-market capabilities, and entering new categories and verticals. Investors should monitor the company's ability to successfully integrate Slack and realize synergies, manage increasing operating expenses, and navigate competitive market dynamics and global economic uncertainties. The company's commitment to its core values, including trust, customer success, innovation, equality, and sustainability, remains a key tenet of its business strategy.
02—Key points
Key Highlights
- Revenue increased by 25% year-over-year to $26.5 billion in fiscal year 2022.
- Cash provided by operations grew by 25% year-over-year to $6.0 billion.
- Total remaining performance obligation increased by 21% year-over-year to $43.7 billion.
- The acquisition of Slack Technologies, Inc. was completed in July 2021, significantly expanding the company's collaboration capabilities.
- The company experienced increased operating expenses in R&D, marketing, and sales due to investments in growth and integration of acquisitions.
- Salesforce has a strong commitment to ESG initiatives, including achieving net-zero residual emissions and investing in diversity and inclusion.
- The company has never paid cash dividends and intends to reinvest earnings for business growth.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2022, Salesforce, Inc. kept $0.05.
- Revenue$26.49B100.0%
- Cost of revenue−$7.03B26.5%
- Gross profit$19.47B73.5%
- Operating costs−$18.92B71.4%
- Operating income$548.0M2.1%
- Interest, other & tax$896.0M3.4%
- Net income$1.44B5.5%
Where FY2022 revenue went
$26.49B- Other operating costs: $14.45B, 55% of revenue
- Cost of revenue: $7.03B, 27% of revenue
- R&D: $4.46B, 17% of revenue
- Operating income: $548.0M, 2.1% of revenue
Kept 2.1% as operating incomeOperating income $548.0M · 2.1%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2022filed March 11, 2022Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $26.49B$21.25B | +24.7% |
| Cost of Revenue | $7.03B$5.44B | +29.2% |
| Gross Profit | $19.47B$15.81B | +23.1% |
| R&D Expenses | $4.46B$3.60B | +24.1% |
| Operating Expenses | $18.92B$15.36B | +23.2% |
| Operating Income | $548.00M$455.00M | +20.4% |
| Interest Expense | $216.00M$110.00M | +96.4% |
| Net Income | $1.44B$4.07B | −64.5% |
| EPS (Basic) | $1.51$4.48 | −66.3% |
| EPS (Diluted) | $1.48$4.38 | −66.2% |
| Shares Outstanding (Basic) | 955.00M908.00M | +5.2% |
| Shares Outstanding (Diluted) | 974.00M930.00M | +4.7% |
05—Questions
Frequently Asked Questions
What was Salesforce's revenue performance in fiscal year 2022?
Salesforce reported revenue of $26.5 billion for fiscal year 2022, representing a 25% increase year-over-year. This growth was primarily driven by strong demand for its subscription and support services.
What is the impact of the Slack acquisition on Salesforce?
Salesforce acquired Slack in July 2021, aiming to create a new digital headquarters for companies. The acquisition contributed $584 million to subscription and support revenues in fiscal year 2022 and added approximately $1.2 billion to the company's remaining performance obligation. The company is actively integrating Slack to realize synergies and enhance its collaborative offerings.
How did Salesforce manage its expenses in fiscal year 2022?
Salesforce increased its operating expenses in research and development, marketing, and sales. These increases were primarily due to investments in headcount to support growth, technology development, integration of acquired companies, and go-to-market efforts. Specifically, R&D expenses increased by $867 million, and marketing and sales expenses rose by $2.18 billion.
What is Salesforce's outlook on dividends?
Salesforce has never paid cash dividends on its common stock and does not intend to do so in the foreseeable future. The company's strategy is to retain earnings to finance business growth and development.
06—Continue