Salesforce's CEO, Marc Benioff, expressed optimism about the company's position in the AI CRM market and its potential to help companies connect with their customers through AI over the next decade. Amy Weaver, President and CFO of Salesforce, highlighted the company's disciplined profitable growth and significant progress in their capital return program.
Key highlights —
First Quarter Revenue: $9.13 Billion, an increase of 11% Year-Over-Year (Y/Y), and also up 11% in Constant Currency (CC).Subscription & Support Revenue: $8.59 Billion, up 12% Y/Y.
GAAP Operating Margin: 18.7%, and non-GAAP Operating Margin: 32.1%.
Current Remaining Performance Obligation: $26.4 Billion, up 10% Y/Y, and also up 10% in CC.
Operating Cash Flow: $6.25 Billion, up 39% Y/Y, and Free Cash Flow: $6.08 Billion, up 43% Y/Y.
The company returned $2.2 Billion in share repurchases and $0.4 Billion in dividend payments to stockholders.
For the upcoming second quarter of fiscal year 2025, Salesforce has initiated revenue guidance of $9.20 Billion to $9.25 Billion, which would represent a 7% - 8% Y/Y growth.
The full year FY25 revenue guidance remains at $37.7 Billion to $38.0 Billion, indicating an 8% - 9% Y/Y growth. However, the full year FY25 Subscription & Support Revenue Growth Guidance has been slightly lowered to just below 10% Y/Y.
The backbone of Salesforce's income is its subscription- based model, which provides a consistent and predictable revenue stream. This model supports ongoing innovation and value delivery to users.
These factors combined have contributed to Salesforce's robust financial performance and its ability to maintain a trajectory of growth.
For more detailed information, you can refer to the full earnings call transcript or the official press release.
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