Reiterates FY23 Revenue Guidance of $31.7 Billion to $31.8 Billion
- Third Quarter Revenue of $6.86 Billion, up 27% Year-Over-Year, 26% in Constant Currency
- Current Remaining Performance Obligation of Approximately $18.8 Billion, up 23% Year-Over-Year, 23% in Constant Currency
- Third Quarter GAAP Operating Margin of 0.6% and Non-GAAP Operating Margin of 19.8%
- Initiates Fourth Quarter FY22 Revenue Guidance of $7.224 Billion to $7.234 Billion, up Approximately 24% Year-Over-Year
- Raises FY22 Revenue Guidance to $26.39 Billion to $26.40 Billion, up Approximately 24% Year-Over-Year
- Raises FY22 GAAP Operating Margin Guidance to Approximately 1.8% and Non-GAAP Operating Margin Guidance to Approximately 18.6%
- Raises FY22 Operating Cash Flow Growth Guidance to Approximately 18% to 19% Growth Year-Over-Year
- Initiates First Quarter FY23 Revenue Guidance of $7.215 Billion to $7.250 Billion, up Approximately 21% to 22% Year-Over-Year
- Reiterates FY23 GAAP Operating Margin Guidance of Approximately 3.0% to 3.5% and Non-GAAP Operating Margin of Approximately 20%
SAN FRANCISCO–(BUSINESS WIRE)–Salesforce (NYSE: CRM), the global leader in CRM, today announced results for its third quarter of fiscal 2022 ended October 31, 2021.
“We delivered another phenomenal quarter, fueling strong revenue growth, margin and cash flow,” said Marc Benioff, Chair and CEO of Salesforce. “Salesforce is more relevant and strategic than ever as every company accelerates their digital transformation journey. Just as we’ve helped our customers navigate the pandemic, we’re now guiding them toward greater growth, customer success, health and safety, and trust. With the tremendous strength of our Customer 360 platform and Slack, we’re on track to reach $50 billion revenue in FY26.”
“Our disciplined approach continues to deliver record levels of operating margin this year,” said Amy Weaver, President and CFO. “During the third quarter, we again executed against the strong demand environment in front of us. Slack saw another strong quarter, and we are pleased with Slack’s representation in our largest deals. In this new world, Slack and our Customer 360 have never been more relevant.”
Salesforce delivered the following results for its fiscal third quarter:
Revenue: Total third quarter revenue was $6.86 billion, an increase of 27% year-over-year, and 26% in constant currency. Subscription and support revenues for the quarter were $6.38 billion, an increase of 25% year-over-year. Professional services and other revenues for the quarter were $0.48 billion, an increase of 45% year-over-year.
Operating Margin: Third quarter GAAP operating margin was 0.6%. Third quarter non-GAAP operating margin was 19.8%.
Earnings per Share: Third quarter GAAP diluted earnings per share was $0.47, and non-GAAP diluted earnings per share was $1.27. Mark-to-market accounting of the company’s strategic investments benefited GAAP diluted earnings per share by $0.27 based on a U.S. tax rate of 25% and non-GAAP diluted earnings per share by $0.28 based on a non-GAAP tax rate of 21.5%.
Cash: Cash generated from operations for the third quarter was $0.40 billion, an increase of 19% year-over-year. Total cash, cash equivalents and marketable securities ended the third quarter at $9.39 billion.
Remaining Performance Obligation: Remaining performance obligation ended the third quarter at approximately $36.3 billion, an increase of 20% year-over-year. Current remaining performance obligation ended the third quarter at approximately $18.8 billion, an increase of 23% year-over-year, 23% in constant currency.
As of November 30, 2021, the company is initiating its revenue guidance, GAAP earnings per share guidance, non-GAAP earnings per share guidance, and current remaining performance obligation growth guidance for its fourth quarter of fiscal year 2022. As of November 30, 2021, the company is raising its revenue guidance previously updated on September 23, 2021 for its full fiscal year 2022. As of November 30, 2021, the company is raising its operating cash flow guidance, GAAP earnings per share guidance, non-GAAP earnings per share guidance, GAAP operating margin guidance and non-GAAP operating margin guidance previously updated on August 25, 2021 for its full fiscal year 2022. As of November 30, 2021, the company is initiating its revenue guidance for its first quarter of fiscal year 2023. As of November 30, 2021, the company is reiterating its revenue guidance, GAAP operating margin guidance and non-GAAP operating margin guidance for its full fiscal year 2023 previously provided on September 23, 2021.
Management will provide further commentary around these guidance assumptions on its earnings call, which is expected to occur on November 30, 2021 at 2:00 PM Pacific Time.
Our guidance assumes no change to the value of the company’s strategic investment portfolio as it is not possible to forecast future gains and losses. In addition, the guidance below is based on estimated GAAP tax rates that reflect the company’s currently available information, and excludes forecasted discrete tax items such as excess tax benefits from stock-based compensation. The GAAP tax rates may fluctuate due to future acquisitions or other transactions.
|
|
Q4 FY22 Guidance |
|
Full Year FY22 Guidance |
|
Q1 FY23 Guidance |
|
Full Year FY23 Guidance |
|
Revenue(1) |
$7.224 – $7.234 |
|
$26.39 – $26.40 |
|
$7.215 – $7.250 |
|
$31.7 – $31.8 |
|
Y/Y Growth |
~24% |
|
~24% to ~24% |
|
~21% – 22% |
|
~20% |
|
GAAP operating margin |
N/A |
|
~1.8% |
|
N/A |
|
~3.0 – 3.5% |
|
Non-GAAP operating margin |
N/A |
|
~18.6% |
|
N/A |
|
~20.0% |
|
GAAP earnings (loss) per share |
($0.24) – ($0.23) |
|
$1.28 – $1.29 |
|
N/A |
|
N/A |
|
Non-GAAP earnings per share |
$0.72 – $0.73 |
|
$4.68 – $4.69 |
|
N/A |
|
N/A |
|
Operating Cash Flow Growth (Y/Y) |
N/A |
|
~18% – 19% |
|
N/A |
|
N/A |
|
Current Remaining Performance Obligation Growth (Y/Y) |
~19% |
|
N/A |
|
N/A |
|
N/A |
|
(1) Full Year FY22 revenue guidance includes contributions from Slack Technologies, Inc. of approximately $565 million, net of purchase accounting. |
|||||||
The following is a reconciliation of GAAP operating margin guidance to non-GAAP operating margin guidance for the full year:
|
|
Full Year FY22 Guidance |
|
Full Year FY23 Guidance |
|
GAAP operating margin(1) |
1.8% |
|
~3.0% – 3.5% |
|
Plus |
|
|
|
|
Amortization of purchased intangibles(2) |
6.2% |
|
5.8% |
|
Stock-based expense(2) |
10.6% |
|
11.1% – 10.6% |
|
Non-GAAP operating margin(1) |
18.6% |
|
~20% |
|
(1) GAAP operating margin is the proportion of GAAP income from operations as a percentage of GAAP revenue. Non-GAAP operating margin is the proportion of non-GAAP income from operations as a percentage of GAAP revenue. |
|||
|
(2) The percentages shown above have been calculated based on the midpoint of the low and high ends of the revenue guidance for full years FY22 and FY23. |
|||
The following is a per share reconciliation of GAAP diluted earnings (loss) per share to non-GAAP diluted earnings per share guidance for the next quarter and the full year:
|
|
Fiscal 2022 |
||||||
|
|
Q4 |
|
FY22 |
||||
|
GAAP earnings (loss) per share range(1)(2) |
($0.24) – ($0.23 |
) |
|
$1.28 – $1.29 |
|
||
|
Plus |
|
|
|
||||
|
Amortization of purchased intangibles |
$ |
0.50 |
|
|
$ |
1.66 |
|
|
Stock-based expense |
$ |
0.77 |
|
|
$ |
2.86 |
|
|
Less |
|
|
|
||||
|
Income tax effects and adjustments(3) |
$ |
(0.31 |
) |
|
$ |
(1.12 |
) |
|
Non-GAAP diluted earnings per share(2) |
$0.72 – $0.73 |
|
|
$4.68 – $4.69 |
|
||
|
Shares used in computing basic GAAP net income per share (millions) |
987 |
|
|
955 |
|
||
|
Shares used in computing diluted Non-GAAP net income per share (millions) |
1,013 |
|
|
976 |
|
||
|
(1)The Company’s GAAP tax provision is expected to be approximately 34% for the three months ended January 31, 2022, and approximately 11% for the year ended January 31, 2022. The GAAP tax rates may fluctuate due to discrete tax items and related effects in conjunction with certain provisions in the Tax Cuts and Jobs Act, future acquisitions or other transactions. |
|||||||
|
(2) The Company’s projected GAAP and Non-GAAP diluted earnings (loss) per share assumes no change to the value of our strategic investment portfolio resulting from ASU 2016-01 as it is not possible to forecast future gains and losses. While historically the company’s strategic investment portfolio has had a positive impact on the company’s financial results, that may not be true for future periods, particularly in periods of significant market fluctuations that affect the publicly traded companies within the company’s strategic investment portfolio. The impact of future gains or losses from the company’s strategic investment portfolio could be material. |
|||||||
|
(3) The Company’s Non-GAAP tax provision uses a long-term projected tax rate of 21.5%, which reflects currently available information and could be subject to change. |
|||||||
For additional information regarding non-GAAP financial measures see the reconciliation of results and related explanations below.
Quarterly Conference Call
Salesforce plans to host a conference call at 2:00 p.m. (PT) / 5:00 p.m. (ET) to discuss its financial results with the investment community. A live webcast and replay details of the event will be available on the Salesforce Investor Relations website at www.salesforce.com/investor.
About Salesforce
Salesforce, the global CRM leader, empowers companies of every size and industry to digitally transform and create a 360° view of their customers. For more information about Salesforce (NYSE: CRM), visit: www.salesforce.com.
“Safe harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements about the company’s financial and operating results, which may include expected GAAP and non-GAAP financial and other operating and non-operating results, including revenue, net income, earnings per share, operating cash flow growth, operating margin, expected revenue growth, expected current remaining performance obligation growth, expected tax rates, stock-based compensation expenses, amortization of purchased intangibles, shares outstanding, market growth, environmental, social and governance goals, expected capital allocation, including mergers and acquisitions, capital expenditures and other investments, and expected contributions from acquired companies. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the company’s results could differ materially from the results expressed or implied by the forward-looking statements it makes.
The risks and uncertainties referred to above include — but are not limited to — risks associated with the impact of, and actions we may take in response to, the COVID-19 pandemic, related public health measures and resulting economic downturn and market volatility; our ability to maintain security levels and service performance meeting the expectations of our customers, and the resources and costs required to avoid unanticipated downtime and prevent, detect and remediate performance degradation and security breaches; the expenses associated with our data centers and third-party infrastructure providers; our ability to secure additional data center capacity; our reliance on third-party hardware, software and platform providers; the effect of evolving domestic and foreign government regulations, including those related to the provision of services on the Internet, those related to accessing the Internet, and those addressing data privacy, cross-border data transfers and import and export controls; current and potential litigation involving us or our industry, including litigation involving acquired entities such as Tableau Software, Inc. and Slack Technologies, Inc., and the resolution or settlement thereof; regulatory developments and regulatory investigations involving us or affecting our industry; our ability to successfully introduce new services and product features, including any efforts to expand our services; the success of our strategy of acquiring or making investments in complementary businesses, joint ventures, services, technologies and intellectual property rights; our ability to complete, on a timely basis or at all, announced transactions; our ability to realize the benefits from acquisitions, strategic partnerships, joint ventures and investments, including our July 2021 acquisition of Slack Technologies, Inc., and successfully integrate acquired businesses and technologies; our ability to compete in the markets in which we participate; the success of our business strategy and our plan to build our business, including our strategy to be a leading provider of enterprise cloud computing applications and platforms; our ability to execute our business plans; our ability to continue to grow unearned revenue and remaining performance obligation; the pace of change and innovation in enterprise cloud computing services; the seasonal nature of our sales cycles; our ability to limit customer attrition and costs related to those efforts; the success of our international expansion strategy; the demands on our personnel and infrastructure resulting from significant growth in our customer base and operations, including as a result of acquisitions; our ability to preserve our workplace culture, including as a result of our decisions regarding our current and future office environments or work-from-home policies; our dependency on the development and maintenance of the infrastructure of the Internet; our real estate and office facilities strategy and related costs and uncertainties; fluctuations in, and our ability to predict, our operating results and cash flows; the variability in our results arising from the accounting for term license revenue products; the performance and fair value of our investments in complementary businesses through our strategic investment portfolio; the impact of future gains or losses from our strategic investment portfolio, including gains or losses from overall market conditions that may affect the publicly traded companies within our strategic investment portfolio; our ability to protect our intellectual property rights; our ability to develop our brands; the impact of foreign currency exchange rate and interest rate fluctuations on our results; the valuation of our deferred tax assets and the release of related valuation allowances; the potential availability of additional tax assets in the future; the impact of new accounting pronouncements and tax laws; uncertainties affecting our ability to estimate our tax rate; uncertainties regarding our tax obligations in connection with potential jurisdictional transfers of intellectual property, including the tax rate, the timing of the transfer and the value of such transferred intellectual property; uncertainties regarding the effect of general economic and market conditions; the impact of geopolitical events; uncertainties regarding the impact of expensing stock options and other equity awards; the sufficiency of our capital resources; our ability to comply with our debt covenants and lease obligations; and the impact of climate change, natural disasters and actual or threatened public health emergencies, including the ongoing COVID-19 pandemic.
Further information on these and other factors that could affect the company’s financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings it makes with the Securities and Exchange Commission from time to time. These documents are available on the SEC Filings section of the Financials section of the company’s website at www.salesforce.com/investor.
salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
© 2021 salesforce.com, inc. All rights reserved. Salesforce and other marks are trademarks of salesforce.com, inc. Other brands featured herein may be trademarks of their respective owners.
|
salesforce.com, inc. Consolidated Statements of Operations (in millions, except per share data) (Unaudited) |
|||||||||||||||||||
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
|||||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||
|
Revenues: |
|
|
|
|
|
|
|
||||||||||||
|
Subscription and support |
$ |
6,379 |
|
|
|
$ |
5,085 |
|
|
|
$ |
17,829 |
|
|
|
$ |
14,500 |
|
|
|
Professional services and other |
484 |
|
|
|
334 |
|
|
|
1,337 |
|
|
|
935 |
|
|
||||
|
Total revenues |
6,863 |
|
|
|
5,419 |
|
|
|
19,166 |
|
|
|
15,435 |
|
|
||||
|
Cost of revenues (1)(2): |
|
|
|
|
|
|
|
||||||||||||
|
Subscription and support |
1,335 |
|
|
|
1,060 |
|
|
|
3,603 |
|
|
|
3,039 |
|
|
||||
|
Professional services and other |
509 |
|
|
|
334 |
|
|
|
1,409 |
|
|
|
920 |
|
|
||||
|
Total cost of revenues |
1,844 |
|
|
|
1,394 |
|
|
|
5,012 |
|
|
|
3,959 |
|
|
||||
|
Gross profit |
5,019 |
|
|
|
4,025 |
|
|
|
14,154 |
|
|
|
11,476 |
|
|
||||
|
Operating expenses (1)(2): |
|
|
|
|
|
|
|
||||||||||||
|
Research and development |
1,203 |
|
|
|
902 |
|
|
|
3,174 |
|
|
|
2,659 |
|
|
||||
|
Marketing and sales |
3,111 |
|
|
|
2,377 |
|
|
|
8,391 |
|
|
|
7,042 |
|
|
||||
|
General and administrative |
667 |
|
|
|
522 |
|
|
|
1,865 |
|
|
|
1,513 |
|
|
||||
|
Total operating expenses |
4,981 |
|
|
|
3,801 |
|
|
|
13,430 |
|
|
|
11,214 |
|
|
||||
|
Income from operations |
38 |
|
|
|
224 |
|
|
|
724 |
|
|
|
262 |
|
|
||||
|
Gains on strategic investments, net |
363 |
|
|
|
1,036 |
|
|
|
1,177 |
|
|
|
1,910 |
|
|
||||
|
Other expense |
(102 |
) |
|
|
(10 |
) |
|
|
(172 |
) |
|
|
(36 |
) |
|
||||
|
Income before benefit from (provision for) income taxes |
299 |
|
|
|
1,250 |
|
|
|
1,729 |
|
|
|
2,136 |
|
|
||||
|
Benefit from (provision for) income taxes (3) |
169 |
|
|
|
(169 |
) |
|
|
(257 |
) |
|
|
1,669 |
|
|
||||
|
Net income |
$ |
468 |
|
|
|
$ |
1,081 |
|
|
|
$ |
1,472 |
|
|
|
$ |
3,805 |
|
|
|
Basic net income per share |
$ |
0.48 |
|
|
|
$ |
1.19 |
|
|
|
$ |
1.56 |
|
|
|
$ |
4.20 |
|
|
|
Diluted net income per share |
$ |
0.47 |
|
|
|
$ |
1.15 |
|
|
|
$ |
1.53 |
|
|
|
$ |
4.11 |
|
|
|
Shares used in computing basic net income per share |
980 |
|
|
|
911 |
|
|
|
945 |
|
|
|
905 |
|
|
||||
|
Shares used in computing diluted net income per share |
1,001 |
|
|
|
939 |
|
|
|
964 |
|
|
|
926 |
|
|
||||
|
(1) Amounts include amortization of intangible assets acquired through business combinations, as follows: |
|||||||||||||||||||
|
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
||||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||
|
Cost of revenues |
$ |
272 |
|
|
|
$ |
169 |
|
|
|
$ |
624 |
|
|
|
$ |
494 |
|
|
|
Marketing and sales |
236 |
|
|
|
114 |
|
|
|
491 |
|
|
|
344 |
|
|
||||
|
(2) Amounts include stock-based expense, as follows: |
|||||||||||||||||||
|
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
||||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||
|
Cost of revenues |
$ |
103 |
|
|
|
$ |
65 |
|
|
|
$ |
280 |
|
|
|
$ |
180 |
|
|
|
Research and development |
276 |
|
|
|
181 |
|
|
|
646 |
|
|
|
531 |
|
|
||||
|
Marketing and sales |
316 |
|
|
|
242 |
|
|
|
817 |
|
|
|
718 |
|
|
||||
|
General and administrative |
117 |
|
|
|
78 |
|
|
|
273 |
|
|
|
219 |
|
|
||||
|
(3) During the second quarter of fiscal 2021, the Company recorded approximately $2.0 billion of a one-time benefit from a discrete tax item related to the recognition of deferred tax assets resulting from an intra-entity transfer of intangible property. |
|||||||||||||||||||
|
salesforce.com, inc. Consolidated Statements of Operations (As a percentage of total revenues) (Unaudited) |
|||||||||||
|
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||
|
Revenues: |
|
|
|
|
|
|
|
||||
|
Subscription and support |
93 |
% |
|
94 |
% |
|
93 |
% |
|
94 |
% |
|
Professional services and other |
7 |
|
|
6 |
|
|
7 |
|
|
6 |
|
|
Total revenues |
100 |
|
|
100 |
|
|
100 |
|
|
100 |
|
|
Cost of revenues (1)(2): |
|
|
|
|
|
|
|
||||
|
Subscription and support |
20 |
|
|
20 |
|
|
19 |
|
|
20 |
|
|
Professional services and other |
7 |
|
|
6 |
|
|
7 |
|
|
6 |
|
|
Total cost of revenues |
27 |
|
|
26 |
|
|
26 |
|
|
26 |
|
|
Gross profit |
73 |
|
|
74 |
|
|
74 |
|
|
74 |
|
|
Operating expenses (1)(2): |
|
|
|
|
|
|
|
||||
|
Research and development |
18 |
|
|
17 |
|
|
17 |
|
|
17 |
|
|
Marketing and sales |
45 |
|
|
44 |
|
|
44 |
|
|
45 |
|
|
General and administrative |
9 |
|
|
9 |
|
|
9 |
|
|
10 |
|
|
Total operating expenses |
72 |
|
|
70 |
|
|
70 |
|
|
72 |
|
|
Income from operations |
1 |
|
|
4 |
|
|
4 |
|
|
2 |
|
|
Gains on strategic investments, net |
5 |
|
|
19 |
|
|
6 |
|
|
12 |
|
|
Other expense |
(2 |
) |
|
0 |
|
|
(1 |
) |
|
0 |
|
|
Income before benefit from (provision for) income taxes |
4 |
|
|
23 |
|
|
9 |
|
|
14 |
|
|
Benefit from (provision for) income taxes |
3 |
|
|
(3 |
) |
|
(1 |
) |
|
11 |
|
|
Net income |
7 |
% |
|
20 |
% |
|
8 |
% |
|
25 |
% |
|
(1) Amounts include amortization of intangible assets acquired through business combinations as a percentage of total revenues, as follows: |
|||||||||||
|
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||
|
Cost of revenues |
4 |
% |
|
3 |
% |
|
3 |
% |
|
3 |
% |
|
Marketing and sales |
3 |
|
|
2 |
|
|
3 |
|
|
2 |
|
|
(2) Amounts include stock-based expense as a percentage of total revenues, as follows: |
|||||||||||
|
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||
|
Cost of revenues |
1 |
% |
|
1 |
% |
|
2 |
% |
|
1 |
% |
|
Research and development |
4 |
|
|
3 |
|
|
3 |
|
|
4 |
|
|
Marketing and sales |
5 |
|
|
5 |
|
|
4 |
|
|
5 |
|
|
General and administrative |
2 |
|
|
1 |
|
|
2 |
|
|
1 |
|
|
salesforce.com, inc. Consolidated Balance Sheets (in millions) |
|||||||||
|
|
October 31, 2021 |
|
January 31, 2021 |
||||||
|
Assets |
(unaudited) |
|
|
||||||
|
Current assets: |
|
|
|
||||||
|
Cash and cash equivalents |
$ |
4,753 |
|
|
|
$ |
6,195 |
|
|
|
Marketable securities |
4,638 |
|
|
|
5,771 |
|
|
||
|
Accounts receivable, net |
4,019 |
|
|
|
7,786 |
|
|
||
|
Costs capitalized to obtain revenue contracts, net |
1,242 |
|
|
|
1,146 |
|
|
||
|
Prepaid expenses and other current assets |
1,305 |
|
|
|
991 |
|
|
||
|
Total current assets |
15,957 |
|
|
|
21,889 |
|
|
||
|
Property and equipment, net |
2,768 |
|
|
|
2,459 |
|
|
||
|
Operating lease right-of-use assets, net |
2,909 |
|
|
|
3,204 |
|
|
||
|
Noncurrent costs capitalized to obtain revenue contracts, net |
1,850 |
|
|
|
1,715 |
|
|
||
|
Strategic investments |
4,004 |
|
|
|
3,909 |
|
|
||
|
Goodwill |
47,951 |
|
|
|
26,318 |
|
|
||
|
Intangible assets acquired through business combinations, net |
9,472 |
|
|
|
4,114 |
|
|
||
|
Deferred tax assets and other assets, net |
2,525 |
|
|
|
2,693 |
|
|
||
|
Total assets |
$ |
87,436 |
|
|
|
$ |
66,301 |
|
|
|
Liabilities and stockholders’ equity |
|
|
|
||||||
|
Current liabilities: |
|
|
|
||||||
|
Accounts payable, accrued expenses and other liabilities |
$ |
4,231 |
|
|
|
$ |
4,355 |
|
|
|
Operating lease liabilities, current |
688 |
|
|
|
766 |
|
|
||
|
Unearned revenue |
10,116 |
|
|
|
12,607 |
|
|
||
|
Total current liabilities |
15,035 |
|
|
|
17,728 |
|
|
||
|
Noncurrent debt |
10,591 |
|
|
|
2,673 |
|
|
||
|
Noncurrent operating lease liabilities |
2,722 |
|
|
|
2,842 |
|
|
||
|
Other noncurrent liabilities |
2,034 |
|
|
|
1,565 |
|
|
||
|
Total liabilities |
30,382 |
|
|
|
24,808 |
|
|
||
|
Stockholders’ equity: |
|
|
|
||||||
|
Common stock |
1 |
|
|
|
1 |
|
|
||
|
Additional paid-in capital |
49,770 |
|
|
|
35,601 |
|
|
||
|
Accumulated other comprehensive loss |
(122 |
) |
|
|
(42 |
) |
|
||
|
Retained earnings |
7,405 |
|
|
|
5,933 |
|
|
||
|
Total stockholders’ equity |
57,054 |
|
|
|
41,493 |
|
|
||
|
Total liabilities and stockholders’ equity |
$ |
87,436 |
|
|
|
$ |
66,301 |
|
|
|
salesforce.com, inc. Consolidated Statements of Cash Flows (in millions) (Unaudited) |
|||||||||||||||||||
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
|||||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||
|
Operating activities: |
|
|
|
|
|
|
|
||||||||||||
|
Net income |
$ |
468 |
|
|
|
$ |
1,081 |
|
|
|
$ |
1,472 |
|
|
|
$ |
3,805 |
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
||||||||||||
|
Depreciation and amortization |
963 |
|
|
|
670 |
|
|
|
2,367 |
|
|
|
1,977 |
|
|
||||
|
Amortization of costs capitalized to obtain revenue contracts, net |
344 |
|
|
|
271 |
|
|
|
992 |
|
|
|
768 |
|
|
||||
|
Expenses related to employee stock plans |
812 |
|
|
|
566 |
|
|
|
2,016 |
|
|
|
1,648 |
|
|
||||
|
Gains on strategic investments, net |
(363 |
) |
|
|
(1,036 |
) |
|
|
(1,177 |
) |
|
|
(1,910 |
) |
|
||||
|
Tax benefit from intra-entity transfer of intangible property |
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
(2,003 |
) |
|
||||
|
Changes in assets and liabilities, net of business combinations: |
|
|
|
|
|
|
|
||||||||||||
|
Accounts receivable, net |
91 |
|
|
|
128 |
|
|
|
3,895 |
|
|
|
2,873 |
|
|
||||
|
Costs capitalized to obtain revenue contracts, net |
(405 |
) |
|
|
(493 |
) |
|
|
(1,223 |
) |
|
|
(973 |
) |
|
||||
|
Prepaid expenses and other current assets and other assets |
189 |
|
|
|
80 |
|
|
|
(1 |
) |
|
|
(134 |
) |
|
||||
|
Accounts payable and accrued expenses and other liabilities |
(548 |
) |
|
|
68 |
|
|
|
(836 |
) |
|
|
4 |
|
|
||||
|
Operating lease liabilities |
(191 |
) |
|
|
(204 |
) |
|
|
(607 |
) |
|
|
(616 |
) |
|
||||
|
Unearned revenue |
(956 |
) |
|
|
(792 |
) |
|
|
(2,880 |
) |
|
|
(2,812 |
) |
|
||||
|
Net cash provided by operating activities |
404 |
|
|
|
339 |
|
|
|
4,018 |
|
|
|
2,627 |
|
|
||||
|
Investing activities: |
|
|
|
|
|
|
|
||||||||||||
|
Business combinations, net of cash acquired |
(35 |
) |
|
|
(24 |
) |
|
|
(14,816 |
) |
|
|
(1,281 |
) |
|
||||
|
Purchases of strategic investments |
(147 |
) |
|
|
(368 |
) |
|
|
(933 |
) |
|
|
(942 |
) |
|
||||
|
Sales of strategic investments |
695 |
|
|
|
33 |
|
|
|
2,164 |
|
|
|
685 |
|
|
||||
|
Purchases of marketable securities |
(2,193 |
) |
|
|
(1,453 |
) |
|
|
(4,509 |
) |
|
|
(3,968 |
) |
|
||||
|
Sales of marketable securities |
720 |
|
|
|
662 |
|
|
|
3,765 |
|
|
|
1,206 |
|
|
||||
|
Maturities of marketable securities |
150 |
|
|
|
239 |
|
|
|
1,802 |
|
|
|
796 |
|
|
||||
|
Capital expenditures |
(166 |
) |
|
|
(124 |
) |
|
|
(550 |
) |
|
|
(561 |
) |
|
||||
|
Net cash used in investing activities |
(976 |
) |
|
|
(1,035 |
) |
|
|
(13,077 |
) |
|
|
(4,065 |
) |
|
||||
|
Financing activities: |
|
|
|
|
|
|
|
||||||||||||
|
Proceeds from issuance of debt, net of issuance costs |
(6 |
) |
|
|
0 |
|
|
|
7,906 |
|
|
|
0 |
|
|
||||
|
Repayments of Slack Convertible Notes, net of capped call proceeds |
(1,348 |
) |
|
|
0 |
|
|
|
(1,180 |
) |
|
|
0 |
|
|
||||
|
Proceeds from employee stock plans |
430 |
|
|
|
381 |
|
|
|
1,030 |
|
|
|
1,105 |
|
|
||||
|
Principal payments on financing obligations |
(45 |
) |
|
|
(12 |
) |
|
|
(118 |
) |
|
|
(84 |
) |
|
||||
|
Repayments of debt |
(1 |
) |
|
|
(1 |
) |
|
|
(3 |
) |
|
|
(3 |
) |
|
||||
|
Net cash provided by (used in) financing activities |
(970 |
) |
|
|
368 |
|
|
|
7,635 |
|
|
|
1,018 |
|
|
||||
|
Effect of exchange rate changes |
(4 |
) |
|
|
0 |
|
|
|
(18 |
) |
|
|
(1 |
) |
|
||||
|
Net decrease in cash and cash equivalents |
(1,546 |
) |
|
|
(328 |
) |
|
|
(1,442 |
) |
|
|
(421 |
) |
|
||||
|
Cash and cash equivalents, beginning of period |
6,299 |
|
|
|
4,052 |
|
|
|
6,195 |
|
|
|
4,145 |
|
|
||||
|
Cash and cash equivalents, end of period |
$ |
4,753 |
|
|
|
$ |
3,724 |
|
|
|
$ |
4,753 |
|
|
|
$ |
3,724 |
|
|
Contacts
Evan Goldstein
Salesforce
Investor Relations
415-819-2987
evan.goldstein@salesforce.com
Carolyn Guss
Salesforce
Public Relations
415-536-4966
cguss@salesforce.com
