November 29, 2023, the global leader of AI CRM Salesforce Announced the third quarter results of fiscal year 2024 as of October 31, 2023
Salesforce Q3 performance overview in FY2024
• Revenue in the third quarter was $8.72 billion, up 11% year on year and 10% at a fixed exchange rate
• In the third quarter, GAAP operating profit margin was 17.2%, and non GAAP operating profit margin was 31.2%
• The current remaining performance debt is US $23.9 billion, up 14% year on year and 13% at fixed exchange rate
• Third quarter GAAP diluted earnings per share was $1.25 and non GAAP diluted earnings per share was $2.11
• $1.9 billion returned to shareholders in the form of share repurchases in the third quarter
• The revenue target for the fourth quarter of FY24 was raised to $9.18 billion to $9.23 billion, up 10% year on year
• The expected annual revenue of FY24 was lowered to US $34.75 billion to US $34.8 billion, up 11% year on year
• The annual GAAP operating profit margin target of FY24 was raised to 14.5%, and the non GAAP operating profit margin target was raised to 30.5%
• The annual revenue target of FY24 was raised to 30% to 33%
Marc Benioff, Chairman and CEO of SALESFORCE, said: In Q3, we once again vigorously implemented the profitable growth plan formulated last year, achieved revenue of 8.7 billion dollars, and again raised the operating profit margin target for this fiscal year. In terms of revenue, we are now the third largest enterprise software company, the first AI CRM company and enterprise application company. Most importantly, we integrate customer relationship management, data, artificial intelligence and trust into an integrated platform, leading our customers into a new era of rapid productivity growth
Amy Weaver, president and chief financial officer of Salesforce, said: This year we have transformed the company, which enables us to achieve another quarter of profit growth. GAAP operating profit margin reached 17.2%, and non GAAP operating profit margin reached 31.2%. As the world's first AI CRM enterprise, we will continue to be committed to promoting the realization of shareholder value.
Salesforce Q3 performance
profit: The total revenue in the third quarter was 8.72 billion US dollars, up 11% year on year and 11% at a fixed exchange rate. Subscription and support revenue was $8.14 billion, up 13% year on year. Professional services and other revenues were $580 million, down 4% year on year.
Operating profit margin: In the third quarter, GAAP operating profit margin was 17.2%, and non GAAP operating profit margin was 31.2%. The restructuring had a negative impact on GAAP's operating profit margin in the third quarter (60 basis points).
Earnings per share: In the third quarter, GAAP diluted earnings per share was $1.25, and non GAAP diluted earnings per share was $2.11. According to the US tax rate of 25% and the non US tax rate of 23.5%, the loss of the company's strategic investment has a negative impact on GAAP and non GAAP diluted earnings per share of $0.06 and $0.06 respectively. The restructuring had a negative impact of $0.06 on diluted earnings per share of GAAP in the third quarter.
Cash flow: Cash generated from operations in the third quarter was $1.53 billion, up 389% year on year. Free cash flow was US $1.37 billion, up 1088% year on year. The restructuring had a negative impact on the growth of operating cash flow in the third quarter (3600 basis points).
Remaining performance debt: The remaining performance debt at the end of the third quarter was 48.3 billion US dollars, up 21% year on year. At present, the remaining performance debt is US $23.9 billion, up 14% year on year and 13% at fixed exchange rate.
