CRM Q1 2023 Earnings

Call Details

• Call Title: Salesforce, Inc. Q1 2023 Earnings Call
• Date: May 31, 2022 at 9:00 PM UTC
• Management Team:
  • Evan Goldstein (Senior Vice President of Investor Relations)
  • Marc Benioff (Chair and Co-CEO)
  • Bret Taylor (Vice Chair and Co-CEO)
  • Amy Weaver (Chief Financial Officer)
  • Gavin Patterson (Chief Revenue Officer)

Call Summary

Financial Performance

• Total Q1 revenue was $7.41B, up 24% year-over-year or 26% in constant currency.
• Remaining performance obligation ended Q1 at $42B, up 20% year-over-year.
• Current remaining performance obligation was approximately $21.5B, up 21% year-over-year and up 24% in constant currency.
• Operating cash flow for Q1 was $3.7B, up 14% year-over-year, and free cash flow was $3.5B, up 14% year-over-year.
• Q1 non-GAAP operating margin was 17.6%, and Q1 GAAP EPS was $0.03 while Q1 non-GAAP EPS was $0.98.
• Slack revenue was $348M in Q1 versus a guidance of $330M, and the number of customers spending more than $100K annually grew 45% year-over-year.

Guidance

• Fiscal 2023 revenue guidance was lowered by $300M to $31.7B to $31.8B, implying approximately 20% growth year-over-year.
• Total FX headwinds have increased to $600M year-over-year since investor day, according to the company.
• Q2 revenue is guided to $7.69B to $7.70B, or approximately 21% growth year-over-year, and includes a $200M year-over-year FX headwind and a $360M SWAC contribution.
• Full-year non-GAAP operating margin guidance was raised by 40 basis points to 20.4%, representing 170 basis points of expansion year-over-year.
• Full-year GAAP EPS is guided to $0.38 to $0.40 and full-year non-GAAP EPS is guided to $4.74 to $4.76.
• The company reiterated fiscal 2023 operating cash flow growth guidance of approximately 21% to 22% year-over-year and free cash flow growth of approximately 25% to 27% with CapEx expected at about 2% of revenue.