salesforce(CRM) - 2023 Q1 - Quarterly Report

Financial Performance - Revenue for the three months ended April 30, 2022, was $7.4 billion, an increase of 24% year-over-year[102] - Diluted earnings per share for the same period was $0.03, down from $0.50 a year ago[102] - Cash provided by operations was $3.7 billion, an increase of 14% year-over-year[102] - Total revenues for the three months ended April 30, 2022, were $7,411 million, a 24% increase from $5,963 million in the same period of 2021[122] - Subscription and support revenues accounted for approximately 93% of total revenues for the three months ended April 30, 2022[105] - The acquisition of Slack contributed approximately $344 million to subscription and support revenues during the three months ended April 30, 2022[127] - Net income for the three months ended April 30, 2022, was $28 million, compared to $469 million in the same period of 2021[122] Performance Obligations - Total remaining performance obligation as of April 30, 2022, was approximately $42.0 billion, including $1.2 billion related to Slack, representing a 20% increase year-over-year[102] - The current remaining performance obligation was approximately $21.5 billion, an increase of 21% year-over-year[102] - Remaining performance obligation as of April 30, 2022, was $42.0 billion, down from $43.7 billion as of January 31, 2022[124] Revenue Composition - Subscription and support revenues accounted for 93% of total revenues in both the three months ended April 30, 2022, and 2021, with subscription and support revenues reaching $6,856 million, up from $5,536 million[127] - Americas revenues accounted for 67% of total revenues, growing by 21% year-over-year, while Europe and Asia Pacific revenues grew by 33% and 24%, respectively[131] Expenses - Cost of revenues for subscription and support was $1,440 million, representing 20% of total revenues for the three months ended April 30, 2022[122] - Research and development expenses were $1,318 million, accounting for 18% of total revenues for the three months ended April 30, 2022[122] - Marketing and sales expenses totaled $3,372 million, making up 45% of total revenues for the three months ended April 30, 2022[122] - Operating expenses totaled $5,346 million, or 72% of total revenues, compared to 68% in the previous year, with research and development expenses rising by 39% to $1,318 million[133] Cash and Investments - Cash, cash equivalents, and marketable securities as of April 30, 2022, were $13,503 million, an increase from $10,537 million as of January 31, 2022[124] - The company had cash, cash equivalents, and marketable securities totaling $13.5 billion as of April 30, 2022, along with accounts receivable of $4.0 billion[137] - Net cash used in investing activities was $2,457 million, primarily due to $1.7 billion from marketable securities and $414 million for the acquisition of Traction on Demand[141] - The strategic investment portfolio consists of investments in over 400 companies with a combined carrying value of $4.9 billion as of April 30, 2022[157] Debt and Obligations - As of April 30, 2022, the company had total senior unsecured debt of $10.4 billion, with $1.0 billion maturing within the next 12 months[143] - The company has a $3.0 billion unsecured revolving Credit Facility, with no outstanding borrowings as of April 30, 2022, available for general corporate purposes[144] - As of April 30, 2022, the company has future non-cancelable minimum payments under contractual obligations totaling approximately $4.1 billion, with $0.9 billion due in the next 12 months and $3.2 billion due thereafter[145] Market Risks - Foreign currency fluctuations negatively impacted revenues by approximately 2% for the three months ended April 30, 2022[102] - Revenue reported in USD for foreign subsidiaries that transact in international currencies was negatively impacted by approximately 2% compared to the same period in the previous year[153] - Fluctuations in foreign currency exchange rates could adversely impact the company's financial results and cash flows[151] - The company maintains debt obligations subject to market interest risk, with various fixed and floating interest rates across its debt instruments[156] - Changes in interest rates of 100 basis points could result in a market value reduction or increase of $65 million in the fixed-income portfolio[154] Legal and Compliance - The company has not experienced any material change in internal control over financial reporting during the most recently completed fiscal quarter[162] - The company evaluates all claims and lawsuits for their potential merits, which could divert attention from executing the business plan[165] - Legal proceedings, including the Slack shareholder derivative action, are detailed in Note 12 of the condensed consolidated financial statements[166]