CRM Q2 2023 Earnings

Call Details

• Call Title: Salesforce, Inc. Q2 2023 Earnings Call
• Date: August 24, 2022 at 9:00 PM UTC
• Management Team:
  • Marc Benioff (Chair and CEO)
  • Bret Taylor (Vice Chair and Co-CEO)
  • Amy Weaver (Chief Financial Officer)
  • Brian Millham (President and Chief Operating Officer)
  • Mike Spencer (EVP of Finance and Strategy and Investor Relations)

Call Summary

Financial Performance

• Revenue for Q2 was $7.7B, up 22% year-over-year and up 26% in constant currency.
• Q2 non-GAAP operating margin was 19.9% for the quarter.
• Q2 operating cash flow was $334M, which was down 13% year-over-year.
• Q2 free cash flow was $131M, which was down 24% year-over-year after $203M of CapEx.
• Remaining performance obligation (RPO) ended Q2 at $41.6B, up 15% year-over-year.
• Current RPO (CRPO) was $21.5B, up 15% year-over-year and up 19% in constant currency.

Guidance

• Fiscal 2023 revenue guidance was revised to $30.9B to $31.0B, implying approximately 17% year-over-year growth and 20% in constant currency.
• The company now expects a total FY23 foreign exchange headwind of $800M year-over-year, an incremental $200M since the prior guide.
• Q3 revenue is guided to $7.82B to $7.83B, implying ~14% year-over-year growth and 18% in constant currency, and includes a $250M FX headwind.
• Q3 guidance assumes a $380M contribution from Slack, and full-year guidance assumes $1.5B contribution from Slack.
• CRPO growth is expected to be approximately 12% year-over-year, or 15% in constant currency for Q3.
• Fiscal 2023 GAAP EPS guidance is $0.38 to $0.40, and non-GAAP EPS guidance is $4.71 to $4.73.
• Fiscal 2023 operating cash flow growth is targeted at approximately 16% to 17% year-over-year, and free cash flow growth is targeted at ~18% to 19%.