Salesforce has presented its Q1 results. Notable highlights include an 11% year-over-year increase in revenue, totaling $8.25 billion, along with a 13% constant currency increase. The GAAP operating margin for the quarter reached 5.0%, while the non-GAAP operating margin stood at 27.6%.
The remaining performance obligation also rose to $24.1 billion, representing a 12% year-over-year growth. The company reported GAAP diluted earnings per share of $0.20, with non-GAAP diluted EPS at $1.69.
Stockholders received a generous return of $2.1 billion in share repurchases during the first quarter. Salesforce’s second-quarter FY24 revenue guidance predicts a range of $8.51 billion to $8.53 billion, marking a nearly 10% year-over-year increase.
The company maintained a full-year FY24 revenue guidance of $34.5 billion to $34.7 billion
Marc Benioff, Chair and CEO of Salesforce, expressed his satisfaction with the company’s outstanding performance, highlighting the significant 1,000 basis points year-over-year increase in non-GAAP margin for the quarter.
In response, Salesforce has revised its FY24 non-GAAP operating margin guidance, anticipating a substantial 550 basis point growth compared to the previous year. Innovation remains at the forefront of Salesforce’s endeavors, particularly in CRM.
Benioff emphasized their pioneering role in integrating trusted and secure generative AI, utilizing tools like Einstein GPT, Slack GPT, and Tableau GPT across their product portfolio.
What else to know about the report
The GAAP operating margin for the quarter was 5.0%, whereas the non-GAAP operating margin reached 27.6%. The GAAP diluted earnings per share stood at $0.20, with the non-GAAP diluted EPS at $1.69. Cash generated from operations reached $4.49 billion, representing a 22% year-over-year increase, while free cash flow amounted to $4.25 billion, up by 21% year-over-year.
Salesforce’s remaining performance obligation witnessed an 11% year-over-year increase, totaling $46.7 billion. The remaining performance obligation amounted to $24.1 billion, reflecting a 12% year-over-year growth.
Looking ahead, Salesforce maintains its full-year FY24 revenue guidance while updating its GAAP and non-GAAP EPS, GAAP and non-GAAP operating margin, and operating cash flow guidance. To find out more, check out this official press release from Salesforce.
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