SALESFORCE.COM Announces Record-Breaking Second Quarter Earnings for FY2024
September 6, 2023
🌥️Earnings Overview
On July 31, 2023, SALESFORCE.COM ($NYSE:CRM) announced their second quarter earnings results for FY2024, which ended on that day. Total revenue for the quarter amounted to USD 8603.0 million, a 11.4% year-over-year increase. The net income for the same quarter was USD 1267.0 million, significantly higher than the previous year’s figure of USD 68.0 million.
Share Price
CEO Marc Benioff stated that SALESFORCE.COM has seen accelerated growth across all of its cloud solutions and services over the past quarter, and is now firmly established as the global leader in cloud computing. This rise in cash flow has been attributed to higher subscription and service revenue, as well as improved efficiencies across the organization. These strong results demonstrate the power of SALESFORCE.COM’s business model and its leadership in the cloud computing space. With continued innovation and customer focus, the company is well-positioned to achieve long-term success and create value for both investors and customers alike. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Salesforce.com. More…
| Total Revenues | Net Income | Net Margin |
| 33.07k | 1.58k | 9.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Salesforce.com. More…
| Operations | Investing | Financing |
| 8.4k | 40 | -8.66k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Salesforce.com. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 92.45k | 34.37k | 59.63 |
Key Ratios Snapshot
Some of the financial key ratios for Salesforce.com are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 19.5% | 300.2% | 13.0% |
| FCF Margin | ROE | ROA |
| 22.9% | 4.6% | 2.9% |
Analysis
GoodWhale’s analysis of SALESFORCE.COM‘s fundamentals reveals a high health score of 8/10 with regards to its cashflows and debt, showing that the company is capable of safely navigating any crisis without the risk of bankruptcy. Furthermore, we have classified the company as a ‘gorilla’, meaning it has achieved stable and high revenue or earning growth due to its strong competitive advantage. In terms of investments, SALESFORCE.COM is strong in growth and profitability, medium in asset and weak in dividends. This makes it an attractive investment for those looking for growth and potential capital appreciation, but less so for those seeking a steady dividend income. It would also appeal to investors who are looking for a well-established company that has a strong competitive edge. More…
Peers
Salesforce Inc is a cloud-based customer relationship management software company. Founded in 1999, Salesforce provides software for customer relationship management, or CRM, to businesses of all sizes. In the CRM software market, Salesforce competes with Microsoft Corp, SAP SE, and Oracle Corp.
– Microsoft Corp ($NASDAQ:MSFT)
Microsoft Corporation is an American multinational technology company with a market cap of $1.78 trillion as of April 2021. Microsoft is a leading provider of productivity and business solutions, including the Microsoft Office suite of products, the Windows operating system, and the Azure cloud computing platform. The company also manufactures and sells consumer electronics, such as the Xbox gaming console and Surface tablet. Microsoft has a return on equity of 45.3% as of fiscal year 2020.
– SAP SE ($NYSE:SAP)
SAP SE is a German multinational software corporation that makes enterprise software to manage business operations and customer relations. The company has a market cap of 101.09B as of 2022 and a Return on Equity of 10.12%. SAP is the third largest software company in the world and the largest enterprise software company in Europe. The company was founded in 1972 and is headquartered in Walldorf, Germany. SAP has over 425,000 customers in over 180 countries. The company employs over 100,000 people.
– Oracle Corp ($NYSE:ORCL)
Oracle Corporation is an American multinational computer technology corporation, with a market cap of $180.72B as of 2022. They specialize in developing and marketing computer hardware systems and enterprise software products. Oracle’s Return on Equity for the year ending December 31, 2020 was -97.78%.
The company has been in business since 1977 and was founded by Larry Ellison, Bob Miner, and Ed Oates. Oracle is the second-largest software company in the world by revenue, after Microsoft. The company is also the largest provider of enterprise software systems.
Summary
Investors may be pleased with Salesforce.com‘s second quarter earnings results for the fiscal year 2024, as total revenue reported was up 11.4% year over year, reaching USD 8603.0 million. Salesforce.com’s stock price has grown steadily since the announcement, indicating a positive sentiment from investors. With the continued growth of their cloud-based services, Salesforce.com is well-positioned to continue its upward trajectory and deliver value to shareholders.
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