CRM Q3 2024 Earnings

Call Details

• Call Title: Salesforce, Inc. Q3 2024 Earnings Call
• Date: November 30, 2023 at 10:00 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)

Call Summary

Financial Performance

• Revenue for Q3 was $8.7B, up 11% year over year and beat by $40M in constant currency versus internal expectations.
• Non-GAAP operating margin for the quarter was 31.2%, an improvement of 850 basis points year over year.
• Operating cash flow for Q3 was $1.5B, up 389% year over year, and free cash flow was $1.4B, up 1,088% year over year.
• Remaining performance obligation ended Q3 at $48.3B, up 21% year over year, and CRPO was $23.9B, up 14% year over year.
• Revenue attrition for the quarter remained approximately 8% for Q3.
• Geographic growth was reported as Americas up 9%, EMEA up 14% (10% in constant currency), and APAC up 18% (21% in constant currency).
• Add-on products including sales performance management, digital service, and sales productivity grew ARR nearly 40% year over year.

Guidance

• Fiscal year 2024 revenue guidance was narrowed to $34.75B to $34.8B, representing 11% year-over-year nominal growth.
• Fiscal year 2024 non-GAAP operating margin guidance was raised to 30.5%, representing an 800 basis point improvement year over year.
• Fiscal year 2024 non-GAAP diluted EPS is expected to be $8.18 to $8.19 and GAAP diluted EPS is expected to be $3.99 to $4.00, which includes an estimated $0.91 restructuring charge.
• Fiscal year 2024 operating cash flow growth guidance was raised to approximately 30% to 33% and includes a 14 to 16 point headwind from restructuring.
• Full-year capital expenditure guidance is expected to be slightly below 2.5% of revenue and free cash flow growth is expected to be approximately 33% to 36%.
• Q4 2024 revenue guidance is $9.18B to $9.23B, representing 10% growth in both nominal and constant currency, and Q4 non-GAAP EPS is guided to $2.25 to $2.26.