Salesforce results: subscriptions and support revenues head up 11 per cent growth
Q1 results for the CRM vendor showed revenues of $8.25bn
Salesforce revenue went up 11 per cent at the end of the first fiscal quarter of 2024, reaching $8.25bn.
Subscription and support revenues made up $7.64bn of the total, an increase of 11 per cent year on year. Professional services and other revenues were $0.61bn, an increase of nine per cent year on year.
Results also reported a first quarter GAAP operating margin of five per cent and a non-GAAP operating margin of 27.6 per cent.
"Salesforce significantly exceeded our non-GAAP margin target for the quarter - up 1,000 basis points year-over-year, and we are raising our FY24 non-GAAP operating margin guidance to a 550 basis point increase year-over-year," said Marc Benioff, chair and CEO of Salesforce.
"At the same time, we are leading the next major revolution in CRM - infusing trusted, secure generative AI across our entire product portfolio.
"Salesforce's generative AI ecosystem wields Einstein GPT, Slack GPT, and Tableau GPT, delivering trusted power across our product portfolio.
Our Salesforce GPT Trust Layer will shield customer data, enabling productive automation and intelligent enterprise enhancements securely."
President and CFO of Salesforce, Amy Weaver added: "Q1 represented another strong step forward as we accelerate our transformation and profitable growth strategy.
"Our team delivered another double-digit growth quarter on the top and bottom line as we help customers increase productivity, drive efficiency, and become AI-first companies."
The news comes as Salesforce was one of the first tech companies in 2023 to announce it was laying off thousands of workers as part of an action to reduce operating costs.
The company has also made the headlines recently following a multibillion-dollar investment made by investor Elliott Management.
Other results of Q1 2024
Salesforce's first quarter GAAP diluted earnings per share was $0.20, while non-GAAP diluted EPS was $1.69.
Losses on the company's strategic investments negatively impacted GAAP diluted earnings per share by $0.11 based on a US tax rate of 25 per cent.
Non-GAAP diluted EPS by $0.11 based on a non-GAAP tax rate of 23.5 per cent.
Restructuring impacted first quarter GAAP diluted earnings per share by 72 cents.
Cash generated from operations for the first quarter was $4.49bn, an increase of 22 per cent year on year.
While free cash flow was $4.25bn, an increase of 21 per cent year on year. Restructuring impacted first quarter operating cash flow growth by 910 bps.