Salesforce (NYSE:CRM) Q4 2024 Earnings Conference

By / / Salesforce

The following is a summary of the Salesforce, Inc. (CRM) Q4 2024 Earnings Call Transcript:

Financial Performance:

  • Salesforce reported Q4 revenue of $9.3 billion, an 11% increase year over year, with full fiscal year revenue rising to $34.9 billion.
  • Non-GAAP operating margin for Q4 was 31.4%, a rise of 220 basis points year over year.
  • The company saw a full year non-GAAP operating margin of 30.5%.
  • Operating cash flow for the fiscal year reached a record $10.2 billion.
  • Remaining performance obligation (RPO) for Q4 sat at $56 billion, a 12% increase.
  • The revenue attrition for the quarter was slightly above 8%, consistent with previous quarters.
  • The company has projected a non-GAAP operating margin of 32.5% and GAAP operating margin of 20.4% for fiscal year 2025.

Business Progress:

  • There was strong growth seen in the public sector and travel transportation and hospitality sectors.
  • Eight out of the top ten deals in Q4 included six or more clouds.
  • A shift towards AI and data was noted, predicted to drive profits in the coming fiscal year.
  • Salesforce demonstrated a disciplined approach to headcount growth while investing significantly in AI and data.
  • The company introduced its first-ever dividend and plans to return a significant amount to shareholders via share repurchases.
  • Salesforce showcased its Einstein 1 platform as part of its strategic focus on AI, emphasizing its unique position with access to deeply integrated customer data and metadata across its platform.
  • Salesforce launched a new product, Data Cloud, aiming to improve accessibility to data in different systems, and plans to focus primarily on this for the year 2025.
  • Domestic and regional growth was observed, with notable performance in countries including Canada, LatAm, Spain, and India.
  • Salesforce’s industry-specialized products concluded the year with an ARR of $4.8 billion, showing over 20% YoY growth.
  • Salesforce announced its concentrated focus on organic innovation, more notably on its Data Cloud, with the aim of improving all other clouds and the integration of AI and data with the launch of Einstein 1 SKU.
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