CRM Q1 2022 Earnings

Call Details

• Call Title: Salesforce, Inc. Q1 2022 Earnings Call
• Date: May 27, 2021 at 9:00 PM UTC
• Management Team:
  • Evan Goldstein (Senior Vice President of Investor Relations)
  • Marc Benioff (Chair and CEO)
  • Amy Weaver (President and CFO)
  • Bret Taylor (President and COO)
  • Gavin Patterson (President and Chief Revenue Officer)

Call Summary

Financial Performance

• Total revenue for Q1 was $5.96B, representing 23% year-over-year growth and 20% growth in constant currency.
• Q1 operating cash flow was $3.2B, which was up 74% year-over-year.
• Q1 non-GAAP operating margin was 20.2% for the quarter.
• Q1 GAAP EPS was $0.50 and Q1 non-GAAP EPS was $1.21, with mark-to-market gains contributing approximately $0.23 to GAAP EPS and $0.24 to non-GAAP EPS.
• CapEx in the quarter was $171M, resulting in free cash flow of $3.1B, which was up 99% year-over-year.
• Remaining performance obligation (RPO) ended Q1 at approximately $35B, up 19% year-over-year.
• Current remaining performance obligation (CRPO) was approximately $17.8B, up 23% year-over-year and up 20% in constant currency.
• Revenue attrition for Q1 was reported in the range of 9% to 9.5%.

Guidance

• Q2 revenue guidance is $6.22B to $6.23B, implying approximately 21% year-over-year growth and assuming no contribution from Slack to Q2 revenue.
• Q2 CRPO guidance targets roughly 20% growth year-over-year and assumes approximately three points of CRPO growth from Slack.
• Q2 GAAP loss per share is guided to negative $0.10 to negative $0.09 and Q2 non-GAAP EPS is guided to $0.91 to $0.92.
• Fiscal 2022 revenue guidance was raised by $250M to a range of $25.9B to $26.0B, implying roughly 22% year-over-year growth and incorporating an expected $500M from Slack.
• Fiscal 2022 non-GAAP operating margin guidance was raised to 18%, which is an expansion of 30 basis points year-over-year and continues to include an expected 160 basis points headwind from Slack and Acumen.
• Fiscal 2022 operating cash flow guidance was raised by two points to expected growth of 12% to 13% year-over-year, with CapEx expected at approximately 3% of revenue.