- Salesforce, the world’s leading customer relationship management software company, reported fourth-quarter results, with revenue of $8.38 billion, an increase of 14% y/y, with full-year revenue of $31.4 billion, up 18% y/y. Salesforce’s relentless focus on execution and proactive management enabled it to close out a strong quarter.
- The company returned $2.3 billion in the fourth quarter and $4 billion in FY23 to shareholders through share repurchases. Salesforce’s operating cash flow for FY23 was $7.1 billion, the highest in the company’s history, up 19% y/y. Non-GAAP diluted EPS for the fourth quarter was $1.68.
In January, Marc Benioff, Salesforce’s co-founder and CEO, said the company would cut 10% of its workforce, representing over 7,000 people, and that its restructuring strategy led to $828 million in costs during the quarter. - Salesforce delivered $7.79 billion in subscription and support revenue, an increase of 14% y/y, and $0.60 billion in professional services and other revenue, an increase of 19% y/y, in Q4 2023.
Salesforce’s non-GAAP operating margin was 29.2% for the fourth quarter, and the fiscal full-year 2023 non-GAAP operating margin was 22.5%. Salesforce’s fourth-quarter cash generated from operations was $2.79 billion, an increase of 41% y/y, while the free cash flow was $2.57 billion, an increase of 42% y/y. - Salesforce’s guidance for the full year FY24 revenue is $34.5 billion to $34.7 billion, up ~10% y/y, with a non-GAAP operating margin guidance of ~27.0%. The company also increased its share repurchase program to $20 billion. The guidance assumes there will be no improvement in the longer sales cycles, additional requirements around spending and compression of deals that the company has observed in the past three quarters. Salesforce has a compound annual growth rate (CAGR) of 18.31% versus the S&P 500’s 9.76% since it listed more than a decade ago.
By Lee Kern
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