CRM Q2 2024 Earnings

Call Details

• Call Title: Salesforce, Inc. Q2 2024 Earnings Call
• Date: August 30, 2023 at 9:00 PM UTC
• Management Team:
  • Marc Benioff (Chair and CEO)
  • Amy Weaver (President and Chief Financial Officer)
  • Brian Millham (President and Chief Operating Officer)
  • Mike Spencer (EVP of Finance and Strategy and Investor Relations)
  • Ariel Kelman (Chief Marketing Officer)
  • Sabastian Niles (Chief Legal Officer)
  • Kendall Collins (Chief Business Officer)

Call Summary

Financial Performance

• Revenue in the second quarter was $8.6B, up 11% year over year and flat in constant currency.
• Non-GAAP operating margin for Q2 was 31.6%, which the company stated is up over 1,000 basis points year over year.
• Operating cash flow for Q2 was $808M, which the company reported as up 142% year over year.
• Free cash flow for Q2 was $628M, which the company reported as up 379% year over year.
• Remaining performance obligation ended Q2 at $46.6B, representing 12% growth year over year.
• Current remaining performance obligation ended Q2 at $24.1B, representing 12% growth year over year and 11% growth in constant currency.

Guidance

• Fiscal 2024 revenue guidance was raised to $34.7B to $34.8B, representing approximately 11% projected growth year over year.
• Fiscal 2024 non-GAAP operating margin guidance was raised to 30%, which the company said is a 750 basis point improvement year over year.
• Fiscal 2024 GAAP diluted EPS was guided to $3.50 to $3.52 including an estimated restructuring charge of $1.11.
• Fiscal 2024 non-GAAP diluted EPS was guided to $8.04 to $8.06.
• Q3 revenue is guided to $8.70B to $8.72B, representing approximately 11% growth year over year and 10% in constant currency.
• Q3 GAAP EPS is guided to $1.02 to $1.03 and Q3 non-GAAP EPS is guided to $2.05 to $2.06.