By Chris Thompson
Salesforce has announced results for Q4 FY2021 and the entire 2021 financial year.
The CRM giant exceeded Wall Street’s revenue expectations, a feat largely down to strong growth in subscription and support revenue.
Salesforce posted adjusted earnings of $1.04 per share. This EPS result is up from 66 cents reported in the prior-year quarter, and outperformed analysts’ EPS predictions of $0.75.
Fourth quarter revenue came in at $5.82 billion, up 20% year-over-year, and surpassing the $5.68 billion in revenue that Wall Street had anticipated.
The company broke down the Q4FY2021 results, illustrating revenue of $5.48 billion from subscription and support revenue—equating to 20% growth—and $0.34 billion from professional services and other revenue, up 18.4%.
Subscription and support growth was driven by surging sales across several of the software’s divisions during the previous quarter. Sales Cloud division revenue grew 11% to $1.36 billion, Service Cloud division revenue was up 19% to $1.45 billion, Marketing and Commerce grew 27%, bringing in $900 million, and Platform and Other revenue climbed 26% to $1.81 billion.
Slack, the collaboration platform acquired by Salesforce in December 2020, earned $250.6 million in total revenue for the quarter.
“We never could have predicted a year ago what was in store, which makes me incredibly proud of how well we pivoted our company to adapt to this pandemic world,” said Marc Benioff, Chair & CEO of Salesforce.
“We had a record quarter and year by innovating more and faster than ever, enabling our customers to be successful from anywhere, and becoming more relevant and strategic than ever. And we continued to serve all of our stakeholders in a time when they needed it most.”
Following the announcement, Salesforce raised its first quarter FY22 revenue guidance to $5.875 billion to $5.885 billion.
The success of Salesforce paints a bright future for those working with the technology. As a specialist Salesforce recruiter, Mason Frank looks forward to growth in the Salesforce partner and customer ecosystem, as more and more organizations across the globe embrace the world’s number one CRM technology.
Director, Mason Frank International
“Every day we connect hundreds of Salesforce professionals with businesses utilizing the company’s products,” said Andy Mason, Director of Mason Frank.
“It’s encouraging to see Salesforce’s continuing growth and dominance in the CRM market space. To be aligned with a company that continues to scale at pace, while investing in R&D and innovating is extremely exciting, especially as Salesforce is still yet to fully realize its potential in the technology sector.”
Salesforce delivered the following results for its fiscal fourth quarter and financial year:
Total fourth quarter revenue was $5.82 billion, an increase of 20% year-over-year, and 19% in constant currency. Subscription and support revenues for the quarter were $5.48 billion, an increase of 20% year-over-year. Professional services and other revenues for the quarter were $0.34 billion, an increase of 18% year-over-year.
Total fiscal 2021 revenue was $21.25 billion, up 24% year-over-year, and 24% in constant currency. Subscription and support revenues for the year were $19.98 billion, up 25% year-over-year. Professional services and other revenues for the year were $1.28 billion, up 21% year-over-year.
Earnings per Share:
Fourth quarter GAAP diluted earnings per share was $0.28, and non-GAAP diluted earnings per share was $1.04. Mark-to-market accounting of the company’s strategic investments, required by ASU 2016-01, benefited GAAP diluted earnings per share by $0.21 based on a U.S. tax rate of 25% and non-GAAP diluted earnings per share by $0.22 based on a non-GAAP tax rate of 22%.
Fiscal 2021 GAAP diluted earnings per share was $4.38, and non-GAAP diluted earnings per share was $4.92. Mark-to-market accounting of the company’s strategic investments, required by ASU 2016-01, benefited GAAP diluted earnings per share by $1.75 based on a U.S. tax rate of 25% and non-GAAP diluted earnings per share by $1.82 based on a non-GAAP tax rate of 22%.
Cash generated from operations for the fourth quarter was $2.17 billion, an increase of 33% year-over-year. Total cash, cash equivalents and marketable securities ended the fourth quarter at $11.97 billion. Cash generated from operations for fiscal 2021 was $4.8 billion, an increase of 11% year-over-year.
Remaining Performance Obligation:
Remaining performance obligation ended the fourth quarter at approximately $36.1 billion, an increase of 17% year-over-year. Current remaining performance obligation ended the fourth quarter at approximately $18.0 billion, an increase of 20% year-over-year, 18% in constant currency.
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