Summary
Salesforce, Inc. (CRM) reported its second quarter fiscal year 2023 results, showcasing continued revenue growth driven by its subscription and support services. Total revenues increased by 22% year-over-year to $7.72 billion for the quarter, and 23% to $15.13 billion for the first six months of the fiscal year. While revenue growth remains robust, the company highlighted a more measured buying behavior from customers in July 2022, leading to stretched sales cycles and deal compression, which could impact future growth if sustained. Profitability saw a notable decline compared to the prior year, with net income for the quarter at $68 million ($0.07 diluted EPS) compared to $535 million ($0.56 diluted EPS) in the prior year. This decrease was influenced by factors such as increased operating expenses, particularly in research and development and marketing and sales, as well as gains on strategic investments in the prior year. Despite these profitability pressures, the company maintained strong operating cash flow, generating $4.0 billion for the first six months of the fiscal year. Salesforce also announced a new $10.0 billion share repurchase program in August 2022, signaling confidence and a commitment to returning value to shareholders.
Financial Highlights
48 data points| Revenue | $7.72B |
| Cost of Revenue | $2.13B |
| Gross Profit | $5.59B |
| R&D Expenses | $1.33B |
| Operating Expenses | $5.40B |
| Operating Income | $193.00M |
| Net Income | $68.00M |
| EPS (Basic) | $0.07 |
| EPS (Diluted) | $0.07 |
| Shares Outstanding (Basic) | 997.00M |
| Shares Outstanding (Diluted) | 1.00B |
Key Highlights
- 1Total revenues increased by 22% year-over-year to $7.72 billion for the second quarter and 23% to $15.13 billion for the first six months of fiscal 2023.
- 2Net income for the quarter decreased to $68 million from $535 million in the prior year, impacted by higher operating expenses and lower strategic investment gains.
- 3Diluted EPS decreased to $0.07 for the quarter, down from $0.56 in the prior year.
- 4Operating cash flow for the first six months of fiscal 2023 was strong at $4.0 billion, an increase of 11% year-over-year.
- 5Remaining performance obligation (RPO) grew 15% year-over-year to $41.6 billion as of July 31, 2022, indicating strong future revenue potential.
- 6The company noted a "measured buying behavior" from customers in July 2022, leading to stretched sales cycles and deal compression.
- 7Salesforce announced a new $10.0 billion share repurchase program in August 2022.