Summary
Salesforce, Inc. (CRM) filed an 8-K on April 2, 2018, to disclose revisions to its financial guidance for both the first quarter and the full fiscal year 2019. These adjustments are primarily due to the anticipated adoption of Accounting Standards Update No. 2014-09, "Revenue from Contracts with Customers (Topic 606)", which is set to take effect starting in the first fiscal quarter ending April 30, 2018. Investors should note that this update is a proactive measure to align with new accounting standards. While specific revised guidance figures are not detailed within the 8-K itself, they are available in the accompanying press release (Exhibit 99.1). The adoption of Topic 606 may impact the timing and presentation of revenue recognition, and investors are encouraged to review the press release for the precise implications on Salesforce's financial outlook for FY19.
Key Highlights
- 1Salesforce is revising its Q1 FY19 and full-year FY19 financial guidance.
- 2The revision is driven by the upcoming adoption of new revenue recognition standards (ASC Topic 606).
- 3The new accounting standards will be effective from the first fiscal quarter ending April 30, 2018.
- 4The press release containing the revised guidance is attached as Exhibit 99.1.
- 5The 8-K filing itself does not contain the specific revised guidance numbers.