Salesforce announces 26% YoY growth – Q3 2022

Salesforce released its Q3 FY22 earnings call on Tuesday after the market closed. The software company reported non-GAAP diluted earnings of $1.27 per share with net revenue of $6.86 B.

Key Highlights

  • 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%

Analysts Estimate

EPS: $0.92
Revenue: $6.8 billion

Earnings History

The American cloud-based software corporation reported its first $6-billion-quarter, or $6.3 billion, and continues to develop rapidly in terms of revenue, profitability, cash flow, and margins. Revenue was $6.34 billion in the quarter, up 23 percent year over year. The company had a solid operating margin of 20.4 percent, up 20 basis points from the previous year, and generated $386 million in operating cash flow. It increased its forecast to $26.3 billion for the fiscal year 2022. It’s a $300 million increase, which represents a predicted 24 percent increase year over year. It reported earnings of $1.48 per share versus $0.93 per share expected.

Company Profile

Salesforce is a cloud-based software firm situated in San Francisco, California, United States. It offers CRM services and enterprise applications for customer service, marketing automation, analytics, and application development.

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