"It's been a phenomenal year of transformation for Salesforce, with strong performance across all our key metrics, including record cash flow and margin growth. Our total remaining performance obligation ended the fourth quarter at USD$56.9-billion, an increase of 17% year-over-year," says Marc Benioff, chair and CEO of Salesforce. 

"We're also thrilled to initiate our first-ever Salesforce dividend and increase our share buyback plan by USD$10-billion," Benioff adds. 

"With our trusted, unified Einstein 1 Platform, we're incredibly well positioned to build on our success and capitalise on the massive surge in tech spending expected over the coming years, delivering an unprecedented level of intelligence to our customers as AI transforms every company and industry," says Benioff. 

"We had a strong close to our fiscal year and demonstrated significant progress on the profitable growth strategy we announced last year, delivering a full-year GAAP operating margin of 14.4% and Non-GAAP operating margin of 30.5%," says Amy Weaver, president and CFO of Salesforce.

"We have had an extraordinary year of transformation, and looking ahead, we remain committed to driving shareholder value," adds Weaver.
  • Fourth Quarter Revenue of USD$9.29-billion, up 11% Year-Over-Year (Y / Y), up 10% in Constant Currency (CC)
  • Current Remaining Performance Obligation of USD$27.6-billion, up 12% Y / Y, up 13% CC
  • FY24 Revenue of USD$34.9-billion, up 11% Y / Y, up 11% CC
  • FY24 GAAP Operating Margin of 14.4% and non-GAAP Operating Margin of 30.5%
  • FY24 Operating Cash Flow of USD$10.2-billion, up 44% Y / Y
  • Initiates a Quarterly Dividend of USD$0.40 per Share of Outstanding Common Stock
  • Announced Share Repurchase Program Authorisation Increased by USD$10-billion
  • Returned USD$1.7-billion in the Form of Share Repurchases to Stockholders in Q4 and USD$11.7-billion since inception of share repurchase program 
  • Initiates Full Year FY25 Revenue Guidance of USD$37.7-billion to USD$38.0-billion, up 8% — 9% Y / Y
  • Initiates Full Year FY25 Subscription & Support Revenue Growth Guidance of Approximately 10% Y / Y, Slightly Above 10% Y / Y CC
  • Initiates Full Year FY25 GAAP Operating Margin Guidance of 20.4% and non-GAAP Operating Margin Guidance of 32.5%, and 
  • Initiates Full Year FY25 Operating Cash Flow Growth Guidance of 21% to 24% Y / Y. 

Salesforce delivered the following results for its fiscal fourth quarter and full fiscal year:

Revenue
Total fourth-quarter revenue was USD$9.29-billion, an increase of 11% Y / Y and 10% CC. Subscription and support revenues were USD$8.75-billion, an increase of 12% Y / Y. Professional services and other revenues were USD$0.54-billion, a decrease of (9)% Y / Y.

Fiscal 2024 revenue was USD$34.86-billion, an increase of 11% Y / Y and 11% CC. Subscription and support revenues were USD$32.54-billion, an increase of 12% Y / Y. Professional services and other revenues were USD$2.32-billion, flat Y / Y.

Operating margin
Fourth quarter GAAP operating margin was 17.5%. Fourth quarter non-GAAP operating margin was 31.4%. Restructuring negatively impacted fourth quarter GAAP operating margin by (190) bps.

Fiscal 2024 GAAP operating margin was 14.4%. Fiscal 2024 non-GAAP operating margin was 30.5%. Restructuring negatively impacted the fiscal 2024 GAAP operating margin by (280) bps.

Earnings per share
Fourth quarter GAAP diluted EPS was USD$1.47 and non-GAAP diluted EPS was USD$2.29. Losses on the company's strategic investments negatively impacted GAAP diluted EPS by USD$(0.03) based on a United States (US) tax rate of 24.5% and non-GAAP diluted EPS by USD$(0.03) based on a non-GAAP tax rate of 23.5%. Restructuring negatively impacted fourth quarter GAAP diluted EPS by USD$(0.18). 

Fiscal 2024 GAAP diluted EPS was USD$4.20 and non-GAAP diluted EPS was USD$8.22. Losses on the company's strategic investments negatively impacted GAAP diluted EPS by USD$(0.21) based on a US tax rate of 24.5% and non-GAAP diluted EPS by (USD$0.22) based on a non-GAAP tax rate of 23.5%. Restructuring negatively impacted fiscal 2024 GAAP diluted EPS by USD$(1.00).

Cash flow
Cash generated from operations for the fourth quarter was USD$3.40 billion, an increase of 22% Y / Y. Free cash flow was USD$3.26-billion, an increase of 27% Y / Y. Restructuring negatively impacted fourth quarter operating cash flow growth by (200) bps. 

Cash generated from operations for the fiscal 2024 was USD$10.23-billion, an increase of 44% Y / Y. Free cash flow was UAD$9.50 billion, an increase of 50% Y / Y. Restructuring negatively impacted fiscal 2024 operating cash flow growth by (1 500) bps.

Remaining performance obligation
Remaining performance obligation ended the fourth quarter at USD$56.9-billion, an increase of 17% Y / Y. Current remaining performance obligation ended at UAD$27.6-billion, an increase of 12% Y / Y and 13% CC.

Salesforce initiates quarterly dividend
Salesforce's board of directors declared a cash dividend of USD$0.40 per share of our outstanding common stock, payable on Thursday, 11 April to stockholders of record as of the close of business on Thursday, 14 March. 

We intend to pay a cash dividend on a quarterly basis going forward, subject to market conditions and approval by our board of directors, says Salesforce.

Forward-Looking guidance
According to Saleforce as of Wednesday, 28 February, the company is initiating its first quarter GAAP and non-GAAP diluted EPS guidance, current remaining performance obligation growth guidance and revenue guidance. The company is initiating its full-year:
  • FY25 revenue guidance
  • GAAP and non-GAAP diluted EPS guidance
  • GAAP and non-GAAP operating margin guidance
  • subscription and support revenue growth guidance, and
  • operating cash flow growth guidance. 
Salesforce says, "Our guidance assumes no change to the value of the company's strategic investment portfolio as it is not possible to forecast future gains and losses. In addition, the guidance below is based on estimated GAAP tax rates that reflect the company's currently available information and excludes forecasted discrete tax items such as excess tax benefits from stock-based compensation."

"The GAAP tax rates may fluctuate due to discrete tax items and related effects in conjunction with certain provisions in the Tax Cuts and Jobs Act, future acquisitions or other transactions," concludes Salesforce. 

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