Salesforce Posted Strong Quarterly Results
Software maker Salesforce had a strong second fiscal quarter of 2022 with revenue reaching $6,34 billion, up 23% year-over-year. In the third quarter, the company expects growth at around 25% compared with the same period last year.
“With companies and governments around the world continuing to accelerate their digital transformations, we delivered our fifth phenomenal quarter in a row,” said Marc Benioff, Chairman CEO of Salesforce. “Salesforce has never seen better execution or greater momentum. Our Customer 360 platform is now fueled by a herd of unicorns perfectly designed for this all-digital world. Sales, Service, Marketing & Commerce, Platform, Tableau, MuleSoft and now Slack are all billion dollar-plus products delivering customer success like no other company.”
Total second quarter revenue was $6.34 billion, an increase of 23% year-over-year, and 21% in constant currency. Subscription and support revenues for the quarter were $5.91 billion, an increase of 22% year-over-year. Professional services and other revenues for the quarter were $0.43 billion, an increase of 37% year-over-year. Second quarter GAAP operating margin was 5.2%, while non-GAAP operating margin was 20.4%.
GAAP diluted earnings per share was $0.56, and non-GAAP diluted earnings per share was $1.48. Mark-to-market accounting of the company’s strategic investments benefited GAAP diluted earnings per share by $0.42 based on a U.S. tax rate of 25% and non-GAAP diluted earnings per share by $0.43 based on a non-GAAP tax rate of 21.5%. Cash generated from operations for the second quarter was $0.39 billion, a decrease of 10% year-over-year. Total cash, cash equivalents and marketable securities ended the second quarter at $9.65 billion.
“We had another remarkable quarter of top and bottom line performance, making this an impressive first half of this fiscal year,” said Amy Weaver, President and CFO. “We exceeded our financial expectations in the quarter, achieving record levels of new business, and saw strong demand across our portfolio. And we are excited to build on Slack’s momentum with the power of our two companies now together.”