SALESFORCE.COM Reports Record Earnings for Second Quarter of FY2024
September 1, 2023
🌥️Earnings Overview
On August 30 2023, SALESFORCE.COM ($NYSE:CRM) released their earnings results for the second quarter of FY2024, which closed on July 31 2023. Revenue increased by 11.4% year-on-year, reaching USD 8603.0 million, and net income skyrocketed to USD 1267.0 million, up from 68.0 million in the prior year.
Price History
The company opened the day at $211.8 and closed at $215.0, a 1.5% increase from its prior closing price of 212.0. This marked a record-breaking quarter fueled by strong customer demand and improved operational efficiency. The company continues to experience customer demand and benefit from improved operational efficiency, making it well-positioned to further strengthen its presence in the market. SALESFORCE.COM_Reports_Record_Earnings_for_Second_Quarter_of_FY2024″>Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Salesforce.com. SALESFORCE.COM_Reports_Record_Earnings_for_Second_Quarter_of_FY2024″>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. SALESFORCE.COM_Reports_Record_Earnings_for_Second_Quarter_of_FY2024″>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. SALESFORCE.COM_Reports_Record_Earnings_for_Second_Quarter_of_FY2024″>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. SALESFORCE.COM_Reports_Record_Earnings_for_Second_Quarter_of_FY2024″>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
At GoodWhale, we recently conducted an analysis of SALESFORCE.COM‘s fundamentals. Upon evaluating their Star Chart, we found that SALESFORCE.COM is strong in growth, profitability, and medium in assets, but weak in dividend. We classified it as a ‘gorilla’, which is a company we conclude that achieved stable and high revenue or earning growth due to its strong competitive advantage. Given SALESFORCE.COM’s characteristics, we believe there could be a variety of investors interested in this company. For instance, those who are seeking growth potential and are comfortable with taking on higher risks may find this company attractive. Moreover, SALESFORCE.COM has a high health score of 8/10 with regard to its cashflows and debt, meaning it is capable of paying off debt and funding future operations. This gives investors peace of mind that the company is financially stable and can make good on its promises. 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
SALESFORCE.COM‘s second quarter FY2024 results indicate solid financial performance, with total revenues increasing 11.4% year-on-year and net income rising significantly from 68.0 million to 1267.0 million. Investors should consider the company’s strong performance, strong market presence, and consistent growth over the last few years when evaluating the stock. The company’s ability to generate consistent and growing income is attractive to investors, as well as its ability to invest in new technologies and acquisitions to stay ahead of the competition. As a result, SALESFORCE.COM appears to be a good long-term investment for those looking for growth in the technology sector.
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