Salesforce Tops Forecasts
August 26, 2021
Salesforce reported results for its second quarter of fiscal 2022 ended July 31,
2021. The firm had earnings of $1.48
per share, adjusted, with. 92 cents per share expected. As to revenue, the cloud
company reported $6.34 billion with only $6.24 billion expected.
“With companies and governments around the world continuing to accelerate their
digital transformations, we delivered our fifth phenomenal quarter in a row,”
said Marc Benioff, Chair & CEO, Salesforce. “Salesforce has never seen better
execution or greater momentum. Our Customer 360 platform is now fueled by a herd
of unicorns perfectly designed for this all-digital world. Sales, Service,
Marketing & Commerce, Platform, Tableau, MuleSoft and now Slack are all billion
dollar-plus products delivering customer success like no other company.”
“We had another remarkable quarter of top and bottom line performance, making
this an impressive first half of this fiscal year,” said Amy Weaver, President
and CFO. “We exceeded our financial expectations in the quarter, achieving
record levels of new business, and saw strong demand across our portfolio. And
we are excited to build on Slack’s momentum with the power of our two companies
Salesforce delivered the following results
for its fiscal second quarter:
Revenue: Total second quarter revenue was $6.34 billion, an increase of
23% year-over-year, and 21% in constant currency. Subscription and support
revenues for the quarter were $5.91 billion, an increase of 22% year-over-year.
Professional services and other revenues for the quarter were $0.43 billion, an
increase of 37% year-over-year.
Operating Margin: Second quarter GAAP operating margin was 5.2%. Second
quarter non-GAAP operating margin was 20.4%.
Earnings per Share: Second quarter GAAP diluted earnings per share was
$0.56, and non-GAAP diluted earnings per share was $1.48. Mark-to-market
accounting of the company’s strategic investments benefited GAAP diluted
earnings per share by $0.42 based on a U.S. tax rate of 25% and non-GAAP diluted
earnings per share by $0.43 based on a non-GAAP tax rate of 21.5%.
Cash: Cash generated from operations for the second quarter was $0.39
billion, a decrease of 10% year-over-year. Total cash, cash equivalents and
marketable securities ended the second quarter at $9.65 billion.
Performance Obligation: Remaining performance obligation ended the second
quarter at approximately $36.2 billion, an increase of 18% year-over-year.
Current remaining performance obligation ended the second quarter at
approximately $18.7 billion, an increase of 23% year-over-year, 23% in constant
As of August 25, 2021, the company is initiating its revenue guidance, GAAP
earnings per share guidance, non-GAAP earnings per share guidance, and current
remaining performance obligation growth guidance for its third quarter of fiscal
year 2022. As of August 25, 2021, the company is raising its revenue guidance
previously provided on December 1, 2020 and updated on February 25, 2021 and May
27, 2021 for its full fiscal year 2022. As of August 25, 2021 the company is
raising its operating cash flow guidance, GAAP earnings per share guidance, non-GAAP
earnings per share guidance, GAAP operating margin guidance and non-GAAP
operating margin guidance previously provided on February 25, 2021 and updated
on May 27, 2021 for its full fiscal year 2022.