Salesforce announces solid set of Q1 2023 results

Salesforce has reported results for Q1 2023 ended April 30, 2022, revealing a 24 percent year-on-year increase in revenue to $7.41bn.

The company’s Q1 subscription and support revenues totalled $6.86bn, a year-on-year increase of 24 percent. Professional services and other revenues for the quarter were $0.56bn, representing a lift of 30 percent.

Salesforce reported a Q1 GAAP operating margin of 0.3 percent. Its Q1 GAAP diluted earnings per share was $0.03, and non-GAAP diluted earnings per share was $0.98.

Cash generated from operations for the first quarter was $3.68 billion, an increase of 14 percent year-over-year.

Remaining performance obligation ended Q1 at approximately $42bn, an increase of 20 percent year-on-year. Current remaining performance obligation ended Q1 at approximately $21.5bn, up 21 percent from the same period last year.

Marc Benioff, co-CEO of Salesforce, said: “We had another great quarter, delivering $7.4bn in revenue, up 24 percent year-over-year. There is no greater measure of our resilience and the momentum in our business than the $42bn we have in remaining performance obligation, representing all future revenue under contract. While delivering incredible growth at scale, we’re committed to consistent margin expansion and cash flow growth as part of our long-term plan to drive both top and bottom-line performance.”

Bret Taylor, co-CEO of Salesforce, added: “Our financial results once again demonstrate the strength and durability of our business model as we continue to see strong demand from customers across the entire Customer 360 portfolio. Salesforce has become even more strategic and relevant to our customers as we are providing them with the agility and resilience they need to drive growth and efficiency in these uncertain economic times.”

For Q2 2023, Salesforce is guiding revenue of between $7.69bn and $7.7bn, up 21 percent year-on-year. The company has updated its full year 2023 revenue guidance to $31.7bn to $31.8bn, representing a 20 percent year-on-year increase.