San Francisco — August 28, 2024 — Salesforce (NYSE: CRM), the #1 AI CRM, today announced results for its second quarter fiscal 2025 ended July 31, 2024.

Second Quarter Highlights

• Second Quarter Revenue of $9.33 Billion, up 8% Year-Over-Year (“Y/Y”), up 9% in Constant Currency (“CC”), inclusive of Subscription & Support Revenue of $8.76 Billion, up 9% Y/Y, up 10% Y/Y in CC
• Second Quarter GAAP Operating Margin of 19.1% and non-GAAP Operating Margin of 33.7%
• Current Remaining Performance Obligation of $26.5 Billion, up 10% Y/Y, up 11% Y/Y in CC
• Second Quarter Operating Cash Flow of $0.89 Billion, up 10% Y/Y, and Free Cash Flow of $0.76 Billion, up 20% Y/Y
• Returned $4.3 Billion in the Form of Share Repurchases and $0.4 Billion in Dividend Payments to Stockholders

FY25 Guidance Highlights

• Initiates Third Quarter FY25 Revenue Guidance of $9.31 Billion to $9.36 Billion, up 7% Y/Y
• Maintains Full Year FY25 Revenue Guidance of $37.7 Billion to $38.0 Billion, up 8% – 9% Y/Y and Maintains Full Year FY25 Subscription & Support Revenue Growth Guidance of Slightly Below 10%   Y/Y & Approximately 10% in CC
• Updates Full Year FY25 GAAP Operating Margin Guidance to 19.7% and Updates non-GAAP Operating Margin Guidance to 32.8%
• Raises Full Year FY25 Operating Cash Flow Growth Guidance to 23% to 25% Y/Y

With our new Agentforce AI platform, we’re reimagining enterprise software for a new world where humans with autonomous Agents drive customer success together.

“In Q2, we delivered strong performance across revenue, cash flow, margin and cRPO, and raised our fiscal year non-GAAP operating margin and cash flow growth guidance,” said Marc Benioff, Chair and CEO, Salesforce.  “With our new Agentforce AI platform, we’re reimagining enterprise software for a new world where humans with autonomous Agents drive customer success together. Salesforce is the only company with the leading apps, trusted data and agent-first platform to deliver this vision at scale and help companies realize the incredible benefits of AI.”

“We continue to deliver disciplined profitable growth and this quarter, operating margins closed at record highs with GAAP operating margin of 19.1%, up 190 basis points year-over-year, and Non-GAAP operating margin of 33.7%, up 210 basis points year-over year.” said Amy Weaver, President and CFO of Salesforce. “Our capital return program remains a priority and we now expect to more than fully offset our dilution from FY25 stock based compensation.”

Guidance

Our guidance includes GAAP and non-GAAP financial measures.

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For additional information regarding non-GAAP financial measures see the reconciliation of results and related explanations below.

Management will provide further commentary around these guidance assumptions on its earnings call.

Chief Financial Officer Transition

Amy Weaver has made the decision to step down from her role as President and Chief Financial Officer at Salesforce. She will remain CFO until a successor is appointed. After that time, Amy will be an advisor to the company.

“Amy has been an incredible executive at Salesforce, leading many of the company’s most important strategic and operational initiatives over the last decade. And, she has been an amazing partner to me personally,” said Benioff. “Among her many contributions, Amy oversaw our successful financial transformation over the past several years – which has resulted in unprecedented margin expansion, increased operational excellence, and financial discipline across our organization. We are grateful that Amy’s transition period will allow us to conduct a thoughtful search for our next CFO, and we expect this to be a seamless transition.

“My time at Salesforce has been an amazing journey, and it’s been a privilege to work alongside such a talented, dedicated and compassionate team,” said Weaver. “I’m especially proud of our work to drive increased profitability and productivity and introduce an enhanced capital return program, all while keeping our customers and our values as our north star. I am confident that Salesforce is well-positioned to accelerate its success in this next chapter.”

My time at Salesforce has been an amazing journey, and it’s been a privilege to work alongside such a talented, dedicated and compassionate team.

Product Releases and Enhancements

Three times a year Salesforce delivers new product releases, services, or enhancements to current products and services. These releases are a result of significant research and development investments made over multiple years, designed to help customers drive cost savings, boost efficiency, and build trust.

To view our major product releases and other highlights as part of the Summer 2024 Product Release, visit: www.salesforce.com/products/summer-24-release.

Environmental, Social, and Governance (ESG) Strategy

To learn more about our latest initiatives and priorities, review our Stakeholder Impact Report: https://salesforce.com/stakeholder-impact-report.

Quarterly Conference Call 

Salesforce plans to host a conference call at 2:00 p.m. (PT) / 5:00 p.m. (ET) to discuss its financial results with the investment community. A live webcast and replay details of the event will be available on the Salesforce Investor Relations website at www.salesforce.com/investor.