CRM Q2 2025 Earnings

Call Details

• Call Title: Salesforce, Inc. Q2 2025 Earnings Call
• Date: August 28, 2024 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 (Executive Vice President of Finance and Strategy and Investor Relations)
  • Sebastian Niles (Chief Legal Officer)

Call Summary

Financial Performance

• Q2 revenue was $9.33 billion, up 8% year over year in nominal and up 9% in constant currency.
• Subscription and support revenue grew 9% year over year in nominal and 10% in constant currency.
• Q2 non-GAAP operating margin was 33.7%, representing a 210 basis point improvement year over year.
• Q2 operating cash flow was $892 million, up 10% year over year, and Q2 free cash flow was $755 million, up 20% year over year.
• RPO ended Q2 at $53.5 billion, up 15% year over year, and CRPO ended at $26.5 billion, up 10% year over year nominal with an FX headwind of $300 million.
• Multi-cloud deals accounted for close to 80% of new business in the quarter.
• Scale metrics reported included 25 trillion Einstein transactions, more than a trillion workflows, and 250 petabytes of customer data under management.
• Data Cloud processed 2.3 quadrillion records in the quarter with 110% platform consumption growth year over year.

Guidance

• Full fiscal year 2025 revenue guidance was maintained at $37.7 billion to $38.0 billion, representing growth of approximately 8% to 9% year over year.
• Subscription and support revenue is expected to grow approximately 10% year over year in constant currency for fiscal 2025.
• Fiscal 2025 non-GAAP operating margin was raised to 32.8%, representing a 230 basis point improvement year over year.
• Fiscal 2025 operating cash flow growth guidance was raised to approximately 23% to 25% year over year, inclusive of cash tax headwinds.
• Fiscal 2025 free cash flow growth is expected to be approximately 25% to 27% year over year, and CapEx is expected to be slightly below 2% of revenue.
• Q3 revenue guidance is $9.31 billion to $9.36 billion, representing up 7% year over year in nominal and constant currency.
• Q3 CRPO growth is expected to be 9% year over year nominal (approximately 8.5% constant currency) and includes a one-point quarter-over-quarter headwind from a large Q3 prior-year deal.
• Fiscal 2025 GAAP diluted EPS guidance is $6.05 to $6.13 and non-GAAP diluted EPS guidance is $10.03 to $10.11.