Summary
Salesforce, Inc. reported solid revenue growth for the six months ended July 31, 2021, with total revenues increasing by 23% year-over-year to $12.3 billion. This growth was primarily driven by a strong performance in subscription and support revenues, which climbed 22% to $11.45 billion, indicating continued demand for their core CRM offerings. The company also highlighted a significant increase in cash provided by operations, up 58% to $3.6 billion, demonstrating improving operational efficiency and cash generation capabilities. However, diluted earnings per share saw a decrease to $1.06 from $2.96 in the prior year. This was largely attributed to a one-time $2.0 billion tax benefit recognized in the prior year's comparable period, as well as increased operating expenses, including those related to recent acquisitions and ongoing investments in growth. Notably, the company completed the substantial acquisition of Slack Technologies, Inc. for approximately $27.1 billion, which significantly impacted the balance sheet with increased goodwill and intangible assets, and will require further integration efforts. The company's Remaining Performance Obligation remained robust at $36.2 billion, suggesting strong future revenue potential.
Financial Highlights
48 data points| Revenue | $6.34B |
| Cost of Revenue | $1.61B |
| Gross Profit | $4.73B |
| R&D Expenses | $1.02B |
| Operating Expenses | $4.39B |
| Operating Income | $332.00M |
| Interest Expense | $40.00M |
| Net Income | $535.00M |
| EPS (Basic) | $0.57 |
| EPS (Diluted) | $0.56 |
| Shares Outstanding (Basic) | 933.00M |
| Shares Outstanding (Diluted) | 950.00M |
Key Highlights
- 1Total revenues increased 23% year-over-year to $12.3 billion for the six months ended July 31, 2021.
- 2Subscription and support revenues grew 22% year-over-year to $11.45 billion, driven by new business and customer upgrades.
- 3Cash provided by operating activities increased significantly by 58% to $3.6 billion for the six months ended July 31, 2021.
- 4Completed the acquisition of Slack Technologies, Inc. for approximately $27.1 billion, comprising cash and stock.
- 5Goodwill increased substantially from $26.3 billion to $48.1 billion, primarily due to the Slack acquisition.
- 6Remaining Performance Obligation stood at $36.2 billion as of July 31, 2021, indicating strong future revenue visibility.
- 7Diluted earnings per share decreased to $1.06 from $2.96 year-over-year, impacted by a prior year tax benefit and increased operating expenses.