Reiterates FY23 Revenue Guidance of $31.7 Billion to $31.8 Billion

• Third Quarter Revenue of $6.86 Billion, up 27% Year-Over-Year, 26% in Constant Currency
• Current Remaining Performance Obligation of Approximately $18.8 Billion, up 23% Year-Over-Year, 23% in Constant Currency
• Third Quarter GAAP Operating Margin of 0.6% and Non-GAAP Operating Margin of 19.8%
• Initiates Fourth Quarter FY22 Revenue Guidance of $7.224 Billion to $7.234 Billion, up Approximately 24% Year-Over-Year
• Raises FY22 Revenue Guidance to $26.39 Billion to $26.40 Billion, up Approximately 24% Year-Over-Year
• Raises FY22 GAAP Operating Margin Guidance to Approximately 1.8% and Non-GAAP Operating Margin Guidance to Approximately 18.6%
• Raises FY22 Operating Cash Flow Growth Guidance to Approximately 18% to 19% Growth Year-Over-Year
• Initiates First Quarter FY23 Revenue Guidance of $7.215 Billion to $7.250 Billion, up Approximately 21% to 22% Year-Over-Year
• Reiterates FY23 GAAP Operating Margin Guidance of Approximately 3.0% to 3.5% and Non-GAAP Operating Margin of Approximately 20%

San Francisco — November 30, 2021 —Salesforce (NYSE: CRM), the global leader in CRM, today announced results for its third quarter of fiscal 2022 ended October 31, 2021.

“We delivered another phenomenal quarter, fueling strong revenue growth, margin and cash flow,” said Marc Benioff, Chair and CEO of Salesforce. “Salesforce is more relevant and strategic than ever as every company accelerates their digital transformation journey. Just as we’ve helped our customers navigate the pandemic, we’re now guiding them toward greater growth, customer success, health and safety, and trust. With the tremendous strength of our Customer 360 platform and Slack, we’re on track to reach $50 billion revenue in FY26.”

“Our disciplined approach continues to deliver record levels of operating margin this year,” said Amy Weaver, President and CFO. “During the third quarter, we again executed against the strong demand environment in front of us. Slack saw another strong quarter, and we are pleased with Slack’s representation in our largest deals. In this new world, Slack and our Customer 360 have never been more relevant.”

Salesforce delivered the following results for its fiscal third quarter:

Revenue: Total third quarter revenue was $6.86 billion, an increase of 27% year-over-year, and 26% in constant currency. Subscription and support revenues for the quarter were $6.38 billion, an increase of 25% year-over-year. Professional services and other revenues for the quarter were $0.48 billion, an increase of 45% year-over-year.

Operating Margin: Third quarter GAAP operating margin was 0.6%. Third quarter non-GAAP operating margin was 19.8%.

Earnings per Share: Third quarter GAAP diluted earnings per share was $0.47, and non-GAAP diluted earnings per share was $1.27. Mark-to-market accounting of the company’s strategic investments benefited GAAP diluted earnings per share by $0.27 based on a U.S. tax rate of 25% and non-GAAP diluted earnings per share by $0.28 based on a non-GAAP tax rate of 21.5%. Cash: Cash generated from operations for the third quarter was $0.40 billion, an increase of 19% year-over-year. Total cash, cash equivalents and marketable securities ended the third quarter at $9.39 billion.

Remaining Performance Obligation: Remaining performance obligation ended the third quarter at approximately $36.3 billion, an increase of 20% year-over-year. Current remaining performance obligation ended the third quarter at approximately $18.8 billion, an increase of 23% year-over-year, 23% in constant currency.

As of November 30, 2021, the company is initiating its revenue guidance, GAAP earnings per share guidance, non-GAAP earnings per share guidance, and current remaining performance obligation growth guidance for its fourth quarter of fiscal year 2022. As of November 30, 2021, the company is raising its revenue guidance previously  updated on September 23, 2021 for its full fiscal year 2022. As of November 30, 2021 the company is raising its operating cash flow guidance, GAAP earnings per share guidance, non-GAAP earnings per share guidance, GAAP operating margin guidance and non-GAAP operating margin guidance previously updated on August 25, 2021 for its full fiscal year 2022. As of November 30, 2021 the company is initiating its revenue guidance for its first quarter of fiscal year 2023. As of November 30, 2021 the company is reiterating its revenue guidance, GAAP operating margin guidance and non-GAAP operating margin guidance for its full fiscal year 2023 previously provided on September 23, 2021.

Company Appoints Laura Alber and Oscar Munoz to its Board of Directors

San Francisco —  November 30, 2021 — Salesforce (NYSE: CRM), the global leader in CRM, today announced that Bret Taylor has been promoted to Vice Chair of the Board and Co-CEO of Salesforce, effective immediately. Taylor has served as Salesforce’s President and Chief Operating Officer since 2019, and previously served as the company’s President and Chief Product Officer. “Bret is a phenomenal industry leader who has been instrumental in creating incredible success for our customers and driving innovation throughout our company. He has been my trusted friend for years, and I couldn’t be happier to welcome him as Co-CEO,” said Marc Benioff, Chair and Co-CEO of Salesforce. “We’re in a new world and Salesforce has never been more relevant or strategic for our customers. Together, Bret and I will lead Salesforce through our next chapter, while living our shared values of trust, customer success, innovation and equality for all.”“I’m grateful that Marc and our Board have put their faith in me to help lead Salesforce through our next chapter,” said Taylor. “Marc has been my mentor, my greatest supporter and my trusted friend for years. Partnering with him to lead the company he co-founded 22 years ago is an enormous privilege. I’m thankful for our Salesforce employees, our Trailblazers, our customers, and all of our stakeholders who help us make our company and our world a better place.”