salesforce(US:CRM)2024-08-28 20:02Revenue Performance - Second Quarter Revenue reached $9.33 Billion, an increase of 8% Year-Over-Year (Y/Y) and 9% in Constant Currency (CC) [2] - Subscription & Support Revenue for the second quarter was $8.76 Billion, up 9% Y/Y and 10% Y/Y in CC [2] - Total revenues for the three months ended July 31, 2024, were $9,325 million, a 8.4% increase from $8,603 million in the same period last year [19] - Subscription and support revenues reached $8,764 million, up from $8,006 million, representing a 9.5% year-over-year growth [19] - Revenue growth for the three months ended July 31, 2024, was 9% compared to the same period in 2023, with total revenues reaching $9,325 million [36] Financial Guidance - The company initiated Third Quarter FY25 Revenue Guidance of $9.31 Billion to $9.36 Billion, representing a 7% Y/Y growth [3] - Full Year FY25 Revenue Guidance maintained at $37.7 Billion to $38.0 Billion, indicating an 8% - 9% Y/Y growth [3] Profitability Metrics - GAAP Operating Margin for the second quarter was 19.1%, up 190 basis points Y/Y, while Non-GAAP Operating Margin was 33.7%, up 210 basis points Y/Y [3] - Full Year FY25 GAAP Operating Margin Guidance updated to 19.7% and Non-GAAP Operating Margin Guidance to 32.8% [3] - The company reported a gross profit margin of 77% for the three months ended July 31, 2024, compared to 75% in the same period last year [22] - Non-GAAP income from operations for the three months ended July 31, 2024, was $3,144 million, up from $2,721 million in the same period of 2023, reflecting a significant increase [36] - GAAP operating margin improved to 19.1% for the three months ended July 31, 2024, compared to 17.2% in the same period of 2023 [36] Cash Flow and Capital Management - Operating Cash Flow for the second quarter was $0.89 Billion, up 10% Y/Y, while Free Cash Flow was $0.76 Billion, up 20% Y/Y [2] - The company returned $4.3 Billion to stockholders through share repurchases and $0.4 Billion in dividends [2] - Cash provided by operating activities for the six months ended July 31, 2024, was $7,139 million, compared to $5,299 million for the same period in 2023 [25] - Free cash flow for the three months ended July 31, 2023, was $755 million, an increase from $628 million in the same period last year, representing a growth of 20.2% [40] - For the six months ended July 31, 2023, free cash flow reached $6,839 million, up from $4,876 million, indicating a year-over-year increase of 40.2% [40] Assets and Liabilities - Total current assets decreased to $21,862 million as of July 31, 2024, from $29,074 million as of January 31, 2024 [24] - Total liabilities decreased to $34,547 million as of July 31, 2024, down from $40,177 million as of January 31, 2024 [24] - Cash and cash equivalents were $7,682 million as of July 31, 2024, compared to $8,472 million as of January 31, 2024 [24] Net Income and Earnings Per Share - Net income for the three months ended July 31, 2024, was $1,429 million, compared to $1,267 million in the same period last year, indicating a 12.8% increase [19] - Basic net income per share for the three months ended July 31, 2024, was $1.48, up from $1.30 in the prior year, representing a 13.8% increase [19] - Non-GAAP diluted net income per share for the three months ended July 31, 2024, was $2.56, an increase from $2.12 in the same period of 2023 [39] - The company reported a GAAP net income of $1,429 million for the three months ended July 31, 2024, compared to $1,267 million in the same period of 2023 [39] Remaining Performance Obligations - Current Remaining Performance Obligation stands at $26.5 Billion, reflecting a 10% Y/Y increase and 11% Y/Y in CC [2] - Remaining performance obligation (RPO) as of July 31, 2024, was $53.5 billion, slightly down from $53.9 billion as of April 30, 2024 [28] - Total growth in current remaining performance obligations was 11% for the year ended July 31, 2024, compared to the same period in 2023 [35] Strategic Initiatives - The new Agentforce AI platform aims to enhance customer success by integrating autonomous agents into enterprise software [3] - Future outlook indicates continued focus on market expansion and new product development to sustain growth momentum [36] Non-GAAP Measures - The company emphasizes the use of non-GAAP measures to provide a clearer view of operational performance, excluding items like stock-based compensation and amortization of intangibles [41] - Constant currency revenue growth rates are utilized to assess underlying business performance without the impact of foreign currency fluctuations [48] - Non-GAAP operating margin is calculated as a percentage of GAAP revenue, excluding stock-based compensation and restructuring charges [43] - The company aims to provide investors with a comprehensive view of performance through both GAAP and non-GAAP measures [42] - The company excludes restructuring charges from non-GAAP results as they are not reflective of ongoing operational costs [45]