10-QPeriod: Q2 FY2025

Salesforce, Inc. Quarterly Report for Q2 Ended Jul 31, 2024

Filed August 29, 2024For Securities:CRM

Summary

Salesforce, Inc. reported solid revenue growth in its second fiscal quarter of 2025, with total revenues reaching $9.3 billion, an increase of 8% year-over-year. This growth was primarily driven by its Subscription and Support segment, which saw an 9% increase in revenue. The company also demonstrated improved profitability, with Income from Operations reaching $1.8 billion, a significant increase from the prior year, leading to a healthy operating margin of 19% for the six-month period. Diluted Net Income per Share also saw substantial growth, reaching $1.47 for the quarter. Financially, Salesforce maintains a strong liquidity position with $12.6 billion in cash, cash equivalents, and marketable securities as of July 31, 2024. The company continues to return value to shareholders through significant share repurchases, totaling $6.5 billion in the first six months of fiscal 2025, and has declared dividends. While the company navigates ongoing macroeconomic uncertainties and customer buying behavior shifts, it highlights a focus on operational efficiencies and profitable growth, supported by its robust remaining performance obligation of $53.5 billion.

Financial Statements
Beta
Revenue$9.32B
Cost of Revenue$2.16B
Gross Profit$7.17B
R&D Expenses$1.35B
Operating Expenses$5.38B
Operating Income$1.78B
Interest Expense$68.00M
Net Income$1.43B
EPS (Basic)$1.48
EPS (Diluted)$1.47
Shares Outstanding (Basic)964.00M
Shares Outstanding (Diluted)973.00M

Key Highlights

  • 1Total revenues for the three months ended July 31, 2024, were $9.3 billion, an 8% increase year-over-year, driven by subscription and support revenue growth.
  • 2Income from operations for the three months ended July 31, 2024, increased to $1.8 billion, reflecting a strong operating margin of 19%.
  • 3Diluted Net Income per Share for the three months ended July 31, 2024, was $1.47, up from $1.28 in the prior year.
  • 4Cash, cash equivalents, and marketable securities totaled $12.6 billion as of July 31, 2024, indicating a strong liquidity position.
  • 5Remaining performance obligation stood at $53.5 billion as of July 31, 2024, showing significant contracted future revenue.
  • 6The company repurchased approximately $6.5 billion of its common stock in the first six months of fiscal 2025.
  • 7The professional services and other revenue segment experienced a decrease of 6% for the quarter, signaling a shift in customer demand towards core subscription services.

Frequently Asked Questions

For the three months ended July 31, 2024, Salesforce reported total revenues of $9.3 billion, an increase of 8% compared to $8.6 billion in the same period last year. The subscription and support segment, which is the primary revenue driver, grew by 9%.

Salesforce demonstrated improved profitability. Income from operations for the three months ended July 31, 2024, was $1.8 billion, a significant increase from $1.5 billion in the prior year. This resulted in an operating margin of 19% for the quarter.

As of July 31, 2024, Salesforce maintained a strong liquidity position with $12.6 billion in cash, cash equivalents, and marketable securities, providing ample resources for operations and strategic initiatives.

Salesforce actively returns value to shareholders through its share repurchase program, having repurchased approximately $6.5 billion of its common stock in the first six months of fiscal 2025. The company also declared dividends during the period.

Salesforce highlighted several risks, including macroeconomic uncertainties, shifts in customer buying behavior leading to longer sales cycles, potential security breaches, intense competition, and evolving regulatory environments. The company also noted the impact of foreign currency fluctuations on its results.