Salesforce has announced results for Q2 2023 ended July 31, 2022, beating analysts’ expectations with revenue of $7.72bn, up 22 percent year-on-year, but falling short on guidance for the current quarter and the full fiscal year.
The company reported subscription and support revenues of $7.14bn, up 21 percent year-on-year, whilst professional services and other revenues brought in $0.58bn, an increase of 35 percent.
Salesforce’s Q2 GAAP operating margin was 2.5 percent, with operating cash flow of $0.33bn, a decrease of 13 percent year-on-year.
Salesforce reported Q2 GAAP diluted earnings per share of $0.07. The company also announced a share repurchase program authorized by its board of directors to repurchase up to $10bn.
For Q3 2023, Salesforce anticipates adjusted earnings of $1.20 to $1.21 per share on $7.82bn to $7.83bn in revenue. Analysts polled by Refinitiv had predicted $1.29 in adjusted earnings per share on $8.07bn in revenue.
The company has reduced its full-year 2023 guidance for both earnings and revenue and now anticipates earnings of $4.71 to $4.73 per share and $30.9bn to $31bn in revenue, including $800m in negative foreign-exchange impact. This has been trimmed down from its prior forecast for earnings of $4.74 to $4.76 per share and $31.7bn to $31.8bn in revenue.
Marc Benioff, Salesforce chair and co-CEO, said: “We had another strong quarter, with revenue of $7.7bn growing 22 percent year-over-year and 26 percent in constant currency, showing yet again the durability of our business model. And, we’re thrilled to initiate our first-ever share repurchase program to continue to deliver incredible value to our shareholders on our path to $50bn in revenue in FY26.”
Bret Taylor, Salesforce co-CEO, said: “Our results demonstrate the strength and diversity of our product portfolio across regions, industries and segments. In this more measured buying environment, our Customer 360 portfolio is even more strategic and relevant as our customers focus on productivity, efficiency and time to value.”
