SALESFORCE.COM, INC. FY24 Annual Report
Asking More of
The AI era has arrived. And as we celebrate our
25th anniversary, the future has never looked brighter for Salesforce. Thanks to a transformative year, we are uniquely positioned for continued profitable growth and leadership.
In the face of economic challenges, we promised to reinvent our company, and we delivered. Our commitment
to restructuring, productivity, innovation, and stronger relationships with you, our stockholders, has propelled us to impressive fiscal year 2024 results.
And it's not just about numbers - it's about embracing the AI revolution the right way. Companies are now turning to AI to drive productivity, customer relationships, and profitability. As the #1 AI CRM, we are leading the way. We're empowering businesses to transform and connect with customers in new ways by encouraging them
to ask more of AI.
Trusted AI is fueling solutions like Einstein 1 Platform, Data Cloud, and Einstein Copilot, and helping our customers reach new levels of innovation and growth. It's what we do. And it wouldn't be possible without partners and stakeholders like you. Thank you.
FY24
Highlights
$34.9 billion | 30.5% |
Revenue, up 11% year over year | Non-GAAP Operating Margin2 |
$56.9 billion | 90%+ |
Remaining Performance Obligation,1 up 17% year over year | of the Fortune 500 are Salesforce customers |
$10.2 billion | 8.7 million |
Operating Cash Flow, up 44% year over year | Hours contributed to the community since inception |
1 "Remaining Performance Obligation" represents future revenues that are under contract but have not yet been recognized.
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As the world's #1 CRM and now the #1 AI CRM, Salesforce is uniquely positioned to help our customers harness the unprecedented power of AI...
Fellow stockholders,
As we celebrate our 25th year, I've never been more excited about the future of our company and our industry. We had another incredible year at Salesforce in fiscal year 2024, and we're exceptionally well-positioned to continue delivering profitable growth and leading our customers into this new AI era. Salesforce brings together best-in-class CRM apps for sales, service, marketing, commerce and more, with trusted AI and data all on one integrated platform.
This has been a remarkable year of transformation for our company - restructuring our business for the short and long term; increasing productivity, profitability and operational excellence across the board; doubling down on innovation and making our core products even better; and strengthening our relationships with all of you - our stockholders. Our transformation is reflected in the strong results you saw throughout fiscal year 2024.
For the full year, we delivered $34.9 billion in revenue, up 11% year-over- year. With our continued disciplined approach to margin expansion, non- GAAP operating margin for fiscal year 2024 was 30.5%, up 800 basis points year-over-year. We closed fiscal year 2024 with operating cash flow reaching $10.2 billion, up 44% year-over-year. For the fiscal year, total capital returned in the form of share repurchases was $7.7 billion, or more than 80% of the fiscal year free cash flow, which more than fully offset dilution of our stock- based compensation. Since the inception of the repurchase program, we have returned $11.7 billion to stockholders. Additionally, our board approved a $10 billion increase to our share repurchase plan, bringing the total authorization to $30 billion. We also enhanced our capital return strategy with the initiation of our first-ever cash dividend, which began in fiscal year 2025.
It has been a year of transformation not only at Salesforce but across our industry. Companies are now looking to AI to increase productivity, build deeper customer relationships and achieve higher profitability. We believe that this is the single most important moment in the history of the technology industry. As the world's #1 CRM and now the #1 AI CRM, Salesforce is uniquely positioned to help our customers harness the unprecedented power of AI to connect with their customers in a whole new way.
Data Cloud - the heart of our Einstein 1 Platform - has become the fastest-growing organic product in the history of Salesforce.
Every AI transformation begins with data, and that's why Data Cloud - the heart of our Einstein 1 Platform - has become the fastest-growing organic product in the history of Salesforce. Data Cloud ingests, unifies and harmonizes any data type from any product and system, creating a 360-degree view of customers and powering AI, automation and analytics across the Salesforce applications that business users use every day.
Our Einstein 1 Platform brings together Sales Cloud, Service Cloud, Marketing Cloud and Commerce Cloud, as well as Slack, Tableau and MuleSoft, in a single, integrated fabric with unified data and metadata that enables customers to build richer, more personalized and intelligent customer and employee experiences for businesses of any size across industries.
Companies want AI they can trust. Powered by Data Cloud, Einstein Copilot
- our customizable, conversational, AI assistant - generates responses from natural language prompts using a company's own private and trusted data, while maintaining strict privacy and data governance, without requiring expensive AI model training. Einstein Copilot can answer questions, create content, interpret complex conversations and dynamically automate tasks on behalf of a user, all from a single, consistent user experience embedded directly within Salesforce's industry-leading CRM applications.
Combining CRM, AI, data and trust, Einstein 1 is opening the door to the next level of innovation and growth for our customers.
Einstein 1 Studio makes it easy for companies to build an entirely new generation of AI-powered apps with custom prompts, actions and AI models to close sales deals faster, streamline customer service, auto-create websites and perform hundreds of other business tasks.
...19 million Trailblazers across
100 countries is the heart of the Salesforce ecosystem...
Our community of 19 million Trailblazers across 100 countries is the heart of the Salesforce ecosystem, which is projected to create 11.6 million new jobs and $2 trillion in new business revenue worldwide by 2028. We're proud that more than 6 million people around the world have used Trailhead, our free online learning platform, to upskill and meet the growing demand for digital talent.
As always, we're also achieving success by staying true to our values. I'm proud that over the last 25 years we've been able to give more than $700 million in grants, perform over 8.7 million hours of volunteer service and support 56,000 nonprofit and higher-education customers with our software. And nearly 20,000 companies have adopted our 1-1-1 corporate philanthropy model.
As we close out fiscal year 2024, we thank Sanford Robertson and Alan Hassenfeld,
our long-standing Salesforce directors who left the board during the year. They were instrumental in building Salesforce from a small cloud-based software company to an industry leader as the #1 AI CRM. We were also thrilled to welcome three new board members: Arnold Donald, former President and Chief Executive Officer of Carnival Corporation & plc; Sachin Mehra, Chief Financial Officer of Mastercard; and Mason Morfit, co-Chief Executive Officer and Chief Investment Officer of ValueAct Capital. Each of these leaders brings valuable experience and a diverse skill set to our board to advance our value creation initiatives.
We are deeply grateful to our entire board and to you for your trust and support. Guided by our core values of trust, customer success, innovation, equality and sustainability, we look forward to continuing our partnership with you, delivering on our commitments for profitable growth and leading our customers and industry through this AI revolution.
With gratitude,
Marc
Doing Well and Doing Good, Together
By sticking to our values, we managed to make FY24 another great year. A big thank you to everyone who made these accolades possible.
Leader in
Philanthropy
Top 100
Companies
that Care
7 years in a row
PEOPLE,2023
World's
Most Ethical
Companies
Ethisphere
Leader in
Culture
One of Fortune's
100 Best Companies
to Work For
15 years in a row
Fortune,2023
World's Best
Workplaces
GreatPlaceToWork
Leader in
Innovation
One of Fortune's
Best Workplaces
in Technology
7 years in a row
Fortune,2023
World's
Most Admired
Companies
Fortune
GAAP to Non-GAAP Financial Reconciliation
(in millions)
Fiscal Year ended | |||
Non-GAAP income from operations1 | January 31, 2024 | ||
GAAP income from operations | $ | 5,011 | |
Plus: | |||
Amortization of purchased intangibles | 1,869 | ||
Stock-based compensation expense4 | 2,764 | ||
Restructuring | 988 | ||
Non-GAAP income from operations2 | $ | 10,632 | |
Revenue | $ | 34,857 | |
Non-GAAP operating margin2 | 30.5 % | ||
Full Year | |||
Non-GAAP operating margin | FY25 Guidance | ||
GAAP operating margin2 | ~20.4 | % | |
Plus: | |||
Amortization of purchased intangibles3 | 4.4 | % | |
Stock-based compensation expense3,4 | 7.7 | % | |
Restructuring3,4 | -- | % | |
Non-GAAP operating margin2 | ~32.5 | % | |
1 Used to calculate non-GAAP operating margin by dividing non-GAAP income from operations by GAAP revenue.
2 GAAP operating margin is the proportion of GAAP income from operations as a percentage of GAAP revenue. Non-GAAP operating margin is the proportion of non-GAAP income from operations as a percentage of GAAP revenue. Non-GAAP income from operations excludes the impact of the amortization of purchased intangibles, stock-based compensation expense, and charges related to the Company's restructuring plan.
3 The percentages shown above have been calculated based on the midpoint of the low and high ends of the revenue guidance for full year FY25.
4 The percentages shown in the restructuring line have been calculated based on charges associated with the Company's restructuring plan. Stock-based compensation expense included in the full year FY25 Guidance GAAP to non-GAAP reconciliation table excludes stock-based compensation expense related to the Company's restructuring plan, which is included in the restructuring line.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
- Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the fiscal year ended January 31, 2024
OR
- Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from | to | . | |
Commission File Number: 001-32224 | |||
Salesforce, Inc.
(Exact name of Registrant as specified in its charter)
Delaware | 94-3320693 | |||||
(State or other jurisdiction of | (IRS Employer | |||||
incorporation or organization) | Identification No.) | |||||
Salesforce Tower | ||||||
415 Mission Street, 3rd Fl | ||||||
San Francisco, California 94105 | ||||||
(Address of principal executive offices) | ||||||
Telephone Number: (415) 901-7000 | ||||||
(Registrant's telephone number, including area code) | ||||||
Securities registered pursuant to Section 12(b) of the Act: | ||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||
Common Stock, par value $0.001 per | CRM | New York Stock Exchange |
share | ||
Securities registered pursuant to section 12(g) of the Act: | ||
Not applicable | ||
Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. | Yes È No ' |
Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes ' No È Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding
12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes È No '
Indicate by check mark whether the Registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes È No '
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer | È | Accelerated filer | ' |
Non-accelerated filer | ' | Smaller reporting company | ' |
Emerging growth company | ' |
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. '
Indicate by check mark whether the Registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report È
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. '
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b).'
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ' No È
Based on the closing price of the Registrant's Common Stock on the last business day of the Registrant's most recently completed second fiscal quarter, which was July 31, 2023, the aggregate market value of its shares (based on a closing price of $225.01 per share) held by non-affiliates was approximately $194.1 billion. Shares of the Registrant's Common Stock held by each executive officer and director and by each entity or person that owned 5 percent or more of the Registrant's outstanding Common Stock were excluded in that such persons may be deemed to be affiliates. This determination of affiliate status is not necessarily a conclusive determination for other purposes.
As of February 29, 2024, there were approximately 970 million shares of the Registrant's Common Stock outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Registrant's definitive proxy statement for its 2024 Annual Meeting of Stockholders (the "Proxy Statement"), to be filed within 120 days of the Registrant's fiscal year ended January 31, 2024, are incorporated by reference in Part III of this Report on Form 10-K. Except with respect to information specifically incorporated by reference in this Form 10-K, the Proxy Statement is not deemed to be filed as part of this Form 10-K.
INDEX | ||
Page No. | ||
PART I | ||
Item 1. | Business | 5 |
Item 1A. | Risk Factors | 14 |
Item 1B. | Unresolved Staff Comments | 43 |
Item 1C. | Cybersecurity | 43 |
Item 2. | Properties | 46 |
Item 3. | Legal Proceedings | 46 |
Item 4. | Mine Safety Disclosures | 46 |
Item 4A. | Information About Our Executive Officers | 47 |
PART II | ||
Item 5. | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases | |
of Equity Securities | 49 | |
Item 6. | Reserved | 51 |
Item 7. | Management's Discussion and Analysis of Financial Condition and Results of Operations . . | 51 |
Item 7A. | Quantitative and Qualitative Disclosures about Market Risk | 67 |
Item 8. | Financial Statements | 70 |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure . . | 112 |
Item 9A. | Controls and Procedures | 112 |
Item 9B. | Other Information | 113 |
Item 9C. | Disclosure Regarding Foreign Jurisdictions that Prevent Inspections | 113 |
PART III | ||
Item 10. | Directors, Executive Officers and Corporate Governance | 114 |
Item 11. | Executive Compensation | 114 |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder | |
Matters | 114 | |
Item 13. | Certain Relationships and Related Transactions and Director Independence | 114 |
Item 14. | Principal Accountant Fees and Services | 114 |
PART IV | ||
Item 15. | Exhibits and Financial Statement Schedules | 115 |
Item 16. | 10-K Summary | 115 |
Index to Exhibits | 116 | |
Signatures | 119 |
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salesforce.com Inc. published this content on 16 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 May 2024 20:50:51 UTC.
