Salesforce reports strong first quarter of 2024

CRM giant sounds note of concern about full-year performance

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First quarter financial results from Salesforce released this week surpassed analyst expectations, but preductions for performance over the full year appear to have been too optimistic for the CRM software giant.

Revenue for the first quarter was $9.13 billion, up 11% year-on-year. However the company revised down its full-year subscription & support revenue growth to just below the 10% expected.

“Our profitable growth trajectory continues to drive strong cash flow generation. Q1 operating cash flow was $6.25 billion, up 39% year-over-year. Q1 free cash flow was $6.1 billion, up 43% year-over-year,” said Marc Benioff, chair and CEO, Salesforce. “We are at the beginning of a massive opportunity for our customers to connect with their customers in a whole new way with AI. As the world’s #1 AI CRM, we’re incredibly well positioned to help companies realize the promise of AI over the next decade.”

“We delivered another quarter of disciplined profitable growth, with GAAP operating margin of 18.7%, up 1,370 basis points year-over-year, and Non-GAAP operating margin of 32.1%, up 450 basis points year-over year,” said Amy Weaver, president and CFO of Salesforce. “We’ve also made significant progress on our capital return program, returning more than $14 billion to shareholders since inception, including the payout of our first ever quarterly dividend in Q1.”

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