Salesforce announces record first quarter FY2020 results
Salesforce has made a fantastic start to the financial year by announcing a record first quarter, delivering revenue of $3.74 billion.
Salesforce made a strong finish to the 2019 financial year, and its first quarter results for FY 2020 paint a bright future for the company and its investors. In addition to first quarter revenue being up 24% year over year, earnings per share guidance for FY20 GAAP and Non-GAAP earnings have both been raised, while Q2 revenue guidance has also increased.
The company also has a remaining performance obligation of approximately $24.9 Billion, up 22% year over year.
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Salesforce Chairman and co-CEO, Marc Benioff, was quick to celebrate his company’s dramatic start to the financial year. “I am thrilled with our results this quarter, and I am especially excited to have delivered record revenue in Q1 and operating cash flow of almost $2 billion, up 34% year-over-year. We have a massive opportunity in front of us and are well-positioned for long-term growth as the world’s #1 CRM.”
“Our strong revenue growth in the quarter reflects the strength of our business and the tremendous demand we’re seeing from customers worldwide,” said Keith Block, co-CEO of Salesforce. “Companies of every size and industry are undergoing a digital transformation to better serve their customers and they are choosing Salesforce as their partner.”
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 first quarter FY 2020:
Revenue: Total first quarter revenue was $3.74 billion, an increase of 24% year-over-year, and 26% in constant currency. Subscription and support revenues were $3.50 billion, an increase of 24% year-over-year. Professional services and other revenues were $241 million, an increase of 23% year-over-year.
Earnings per Share: First quarter GAAP diluted earnings per share was $0.49, and non-GAAP diluted earnings per share was $0.93. Mark-to-market accounting of the company’s strategic investments, required by ASU 2016-01, benefited GAAP diluted earnings per share by $0.27 based on the US tax rate of 25% and non-GAAP diluted earnings per share by $0.27 based on our non-GAAP tax rate of 22.5%.
Cash: Cash generated from operations for the first quarter was $1.97 billion, an increase of 34% year-over-year. Total cash, cash equivalents and marketable securities ended the first quarter at $6.38 billion.
Remaining Performance Obligation: Remaining performance obligation ended the first quarter at approximately $24.9 billion, an increase of 22% year-over-year. This includes approximately $500 million related to the remaining performance obligation from MuleSoft. Current remaining performance obligation ended the first quarter at approximately $11.8 billion, an increase of 23% year-over-year, 24% in constant currency.
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