CRM Q1 2024 Earnings

Call Details

• Call Title: Salesforce, Inc. Q1 2024 Earnings Call
• Date: May 31, 2023 at 9:00 PM UTC
• Management Team:
  • Mike Spencer (Executive Vice President of Finance and Strategy and Investor Relations)
  • Marc Benioff (Chair and Chief Executive Officer)
  • Amy Weaver (President and Chief Financial Officer)
  • Brian Millham (President and Chief Operating Officer)
  • Srini Tallapragada (President, Chief Engineering and Customer Success Officer)

Call Summary

Financial Performance

• Revenue for Q1 was $8.2B, up 11% year over year and up 13% in constant currency.
• Non-GAAP operating margin for Q1 was 27.6%, representing a 1,000 basis point improvement year over year.
• Q1 operating cash flow was $4.5B, up 22% year over year, and Q1 free cash flow was $4.2B, up 21% year over year.
• Remaining performance obligation ended Q1 at $46.7B, up 11% year over year, and current RPO (CRPO) was $24.1B, up 12% year over year.
• Q1 revenue attrition was approximately 8%, with a modest increase partially attributed to inclusion of Tableau and additional pressure in marketing and commerce.
• Geographic performance in Q1 was Americas +10%, EMEA +12% (17% in constant currency), and APEC +16% (24% in constant currency).

Guidance

• Fiscal year 2024 revenue guidance is maintained at $34.5B to $34.7B, representing over 10% projected growth year over year.
• Fiscal year 2024 non-GAAP operating margin guidance was raised to 28%, a 550 basis point improvement year over year.
• Salesforce reaffirmed the goal of reaching 30% non-GAAP operating margin in Q1 of fiscal 2025.
• Fiscal year 2024 GAAP EPS is expected to be $2.67 to $2.69 and includes estimated restructuring charges of $1.11 per share.
• Fiscal year 2024 non-GAAP EPS guidance is $7.41 to $7.43, and operating cash flow growth for FY24 is expected to be approximately 16% to 17% which includes a 14 to 16 point restructuring headwind.
• Q2 revenue is guided to $8.51B to $8.53B, approximately 10% growth year over year, and Q2 non-GAAP EPS is guided to $1.89 to $1.90.