Salesforce Posts Strong Financial Results Reflecting Increased Corporate IT Spending

Salesforce, the leader in customer relationship management (CRM) software, has announced robust financial results for its fiscal fourth quarter and full fiscal year, signaling a notable uptick in corporate IT investments.
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In the fourth quarter, Salesforce reported revenue of $9.29 billion, marking an 11 percent increase compared to the previous year. Subscription and support revenues amounted to $8.75 billion, reflecting a 12 percent increase, while professional services and other revenues saw a slight decrease of 9 percent to $0.54 billion.

For the full fiscal year 2024, Salesforce reported revenue of $34.86 billion, representing an 11 percent increase. Subscription and support revenues surged to $32.54 billion, up by 12 percent, while professional services and other revenues remained flat at $2.32 billion.

Despite the positive revenue growth, the fourth quarter operating margin stood at 17.5 percent, impacted negatively by restructuring measures which lowered the margin by 190 basis points. The fiscal 2024 operating margin settled at 14.4 percent, with restructuring exerting a negative impact of 280 basis points on the GAAP operating margin.

Salesforce reported that its total remaining performance obligation at the end of the fourth quarter reached $56.9 billion, marking a significant 17 percent increase.

Marc Benioff, Chair & CEO of Salesforce, expressed confidence in the company’s future prospects, stating, “With our trusted, unified Einstein Platform, we’re incredibly well positioned to build on our success and capitalize on the massive surge in tech spending expected over the coming years, delivering an unprecedented level of intelligence to our customers as AI transforms every company and industry.”

Looking ahead, Salesforce has set ambitious targets for fiscal year 2025, aiming for revenue between $37.7 billion to $38.0 billion, representing an 8 percent to 9 percent increase. This projection underscores the CRM leader’s optimistic outlook and determination to maintain its growth trajectory in the rapidly evolving tech landscape.

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