Summary
Salesforce, Inc. reported strong revenue growth of 24% year-over-year for the nine months ended October 31, 2021, reaching $19.2 billion. This growth was primarily driven by a significant increase in subscription and support revenues, which now constitute 93% of total revenue. The company successfully closed the substantial acquisition of Slack Technologies, Inc. in July 2021, which contributed to a notable increase in goodwill and intangible assets on the balance sheet. Despite robust revenue performance, the company's net income for the nine months was $1.47 billion, a decrease from the prior year's $3.8 billion, largely due to the absence of a significant one-time tax benefit recorded in the previous year. Operating expenses, particularly in marketing and sales, increased to support growth initiatives and integration efforts, reflecting continued investment in the business. The company's financial position remains solid, with cash, cash equivalents, and marketable securities totaling $9.4 billion as of October 31, 2021. Remaining Performance Obligation (RPO) also saw a healthy increase to $36.3 billion, indicating strong future revenue visibility. The company's debt level significantly increased due to new debt issuances to fund acquisitions. Investors should note the continued substantial stock-based compensation expenses and amortization of intangible assets impacting profitability, as well as ongoing investments in research and development and sales and marketing to drive future growth.
Financial Highlights
49 data points| Revenue | $6.86B |
| Cost of Revenue | $1.84B |
| Gross Profit | $5.02B |
| R&D Expenses | $1.20B |
| Operating Expenses | $4.98B |
| Operating Income | $38.00M |
| Interest Expense | $72.00M |
| Net Income | $468.00M |
| EPS (Basic) | $0.48 |
| EPS (Diluted) | $0.47 |
| Shares Outstanding (Basic) | 980.00M |
| Shares Outstanding (Diluted) | 1.00B |
Key Highlights
- 1Total revenues increased by 24% year-over-year to $19.2 billion for the nine months ended October 31, 2021.
- 2Subscription and support revenue, the primary revenue driver, grew significantly and now represents 93% of total revenue.
- 3The acquisition of Slack Technologies, Inc. was completed in July 2021 for approximately $27.1 billion, significantly increasing goodwill and intangible assets.
- 4Cash provided by operations increased by 53% year-over-year to $4.0 billion for the nine months ended October 31, 2021.
- 5Remaining Performance Obligation (RPO) increased by 20% year-over-year to $36.3 billion, indicating strong future revenue visibility.
- 6Net income decreased to $1.47 billion for the nine months ended October 31, 2021, compared to $3.8 billion in the prior year, primarily due to a one-time tax benefit in the prior year.
- 7Total debt increased substantially, largely from new debt issuances to fund acquisitions.