salesforce(US:CRM)2024-02-29 03:36Financial Data and Key Metrics Changes - The company reported Q4 revenue of $9.29 billion, an increase of 11% year-over-year and 10% in constant currency [11][56] - For the full fiscal year 2024, total revenue reached $34.9 billion, also up 11% year-over-year [13][56] - Non-GAAP operating margin for fiscal 2024 was 30.5%, up 800 basis points year-over-year [14][57] - Operating cash flow for Q4 was $3.4 billion, up 22% year-over-year, while full-year operating cash flow reached a record $10.2 billion, up 44% year-over-year [57][58] - Current remaining performance obligation (CRPO) ended at $27.6 billion, up 12% year-over-year [14][59] Business Line Data and Key Metrics Changes - The company saw significant growth in deals greater than $10 million, which grew nearly 80% year-over-year in fiscal year 2024 [12][46] - The Data Cloud product is approaching $400 million in annual recurring revenue (ARR), growing at nearly 90% year-over-year [48] - The company closed 86,000 multi-cloud deals in fiscal year 2024, indicating strong multicloud momentum [46] Market Data and Key Metrics Changes - In Q4, revenue from the Americas grew 9%, EMEA grew 14%, and APAC grew 14% or 19% in constant currency [56] - Strong new business growth was noted in Latin America, India, and Canada, while parts of EMEA remained constrained [56] Company Strategy and Development Direction - The company is focused on operational excellence, high performance, and new growth initiatives, which have laid the foundation for success [45] - The introduction of the first-ever dividend reflects the company's confidence in its future and ability to drive long-term cash flow [10][64] - The company aims to enhance its capital return strategy with a $10 billion increase to its share repurchase plan, bringing the total authorization to $30 billion [64] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the future, emphasizing the transformation driven by artificial intelligence and the evolution of the technology platform [18][44] - The company expects free cash flow to grow between 23% to 26% for fiscal year 2025, with revenue guidance set at $38 billion at the high end [15][62] - Management acknowledged the measured buying environment impacting revenue but noted improved bookings growth in recent quarters [60] Other Important Information - The company ingested over 7 trillion records into the Data Cloud in the last quarter, highlighting the product's rapid adoption [33] - The company has launched Einstein Copilot, a conversational AI assistant for enterprises, which is expected to enhance productivity and customer engagement [37][42] Q&A Session Summary Question: What are the expectations for revenue growth in fiscal year 2025? - The company expects revenue growth of 8% to 9% year-over-year, with subscription and support revenue growth slightly above 10% in constant currency [59][62] Question: How is the company addressing the current buying environment? - Management noted that they continue to execute well in the measured buying environment and have seen improved bookings growth over the past two quarters [60] Question: What is the significance of the new dividend announcement? - The introduction of the first-ever dividend is a reflection of the company's confidence in its future and its ability to drive long-term cash flow [10][64]