Slide 1: Financial Update Q1 FY21
Financial Update Q1 FY21 NYSE: CRM @Salesforce_ir
Slide 2: Safe Harbor
Safe Harbor "Safe harbor" statement under the Private Securities Litigation Reform Act of 1995. This presentation contains forward-looking statements about the company's financial and operating results, which may include expected GAAP and non-GAAP financial and other operating and non-operating resu
Slide 3: Company Overview
Company Overview Delivering durable growth at scale - Salesforce is the #1 CRM software provider worldwide by revenue for 7 consecutive years1 - Consistently delivering durable revenue growth, more than doubling from $8.4 billion in FY17 to $17.1 billion in FY20 - Fastest growing top five enterprise
Slide 4: Financial Overview
Financial Overview Quarterly Results 4
Slide 5: Q1 FY21 Results Highlights
Q1 FY21 Results Highlights Durable top-line growth • Revenue of $4.87 Billion, up 30% year-over-year, 31% in constant currency1 • Operating Cash Flow of $1.86 Billion, down 5% year-over-year • Current Remaining Performance Obligation of approximately $14.5 Billion, up 23% year-over-year, 24% in cons
Slide 6: Q1 FY21 Financial Summary
Q1 FY21 Financial Summary GAAP Non-GAAP1 Quarterly Results Increase (Decrease) Y/Y Quarterly Results Increase (Decrease) Y/Y Revenue $4,865M 30% $4,907M 31% Current Remaining Performance Obligation $14.5B 23% N/A 24% Total Remaining Performance Obligation $29.3B 18% N/A N/A 2 Operating Margin (2.9)%
Slide 7: Total Quarterly Revenue and Operating Margin
Total Quarterly Revenue and Operating Margin $4,865 18.2% 17% 13.1% Q1 FY21 $3,737 Y/Y Growth $3,006 6.4% 5.6% + 30% / +31% CC 1 Revenue (2.9)% (850) bps GAAP Operating Margin Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121 (520) bps Quarterly Revenue Operating Margin Non-GAAP Operating Margin 2 Non-GA
Slide 8: Q1 FY21 Subscription and Support Revenue by Cloud
Q1 FY21 Subscription and Support Revenue by Cloud Complete portfolio of CRM products +16% Y/Y +23% Y/Y +62% Y/Y +27% Y/Y $1.4B $1.2B $1.3B $1.1B $1.0B $0.8B $0.7B $0.6B Q120 Q121 Q120 Q121 Q120 Q121 Q120 Q121 Sales Cloud Service Cloud Salesforce Marketing Cloud Platform & Other & Commerce Cloud Note
Slide 9: Q1 FY21 Revenue by Region
Q1 FY21 Revenue by Region Incremental investments in international markets driving growth $3,370M $1,034M $461M +29% Y/Y +37% Y/Y +26% Y/Y +29% Y/Y CC1 +41% Y/Y CC1 +28% Y/Y CC1 1 Non-GAAP revenue CC growth rates as compared to the comparable prior period. We present CC information for revenue to pr
Slide 10: Remaining Performance Obligation
Remaining Performance Obligation Represents future revenue under contract $29.3B Q1 FY21 $24.9B Y/Y Growth $20.4B $14.8B + 23% / +24% CC 2 $13.1B Current RPO (cRPO) 18% $10.8B + Total RPO $14.5B $11.8B Remaining Performance Obligation (RPO) is a metric disclosed $9.6B with the adoption of Topic 6061
Slide 11: Quarterly Operating Cash Flow
Quarterly Operating Cash Flow $1,965M Q1 FY21 $1,859M Y/Y Growth $1,466M (15)% (5)% FCF1 OCF Our fourth quarter has historically been our strongest quarter for new business and renewals and we generally invoice our customers annually. As a result, our first quarter and, increasingly, our fourth quar
Slide 12: Cash, Cash Equivalents, and Marketable Securities
Cash, Cash Equivalents, and Marketable Securities Strengthening Cash Balances $9.8B Q1 FY21 Y/Y Growth 54% $7.2B $6.4B Total Cash and Marketable Securities Y/Y Growth Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Cash Marketable Securities Note: Growth rate based on reported actuals, not the rounded
Slide 13: Business Overview
salesforce Business Overview
Slide 14: COVID-19 Response: Three Phases
COVID-19 Response: Three Phases &> Phase 1 Phase 2 Phase 3 Rapid response by helping Recovering and reopening Stabilizing and getting our customers, and caring safely, with systematic acquainted to a new for our Ohana processes and Informative normal data to drive decisions 14
Slide 15: COVID-19 Response: Phase 1
COVID-19 Response: Phase 1 => Entered Phase 1 in Q1 and responded with a disciplined systematic approach Phase 1 Rapid response by helping our customers, and caring for our Ohana - Provided customers most affected by the COVID-19 pandemic temporary financial flexibility - Took powerful actions to ca
Slide 16: Salesforce Customer 360
Salesforce Customer 360 Trusted - Smart - Flexible - Sustainable Q Sales wy) Sp & Success Service Platform Partners Marketing 6 F&F & & &F A =] Mobile Blockchain Al Vision Voice Industries Einstein Al Commerce X y Y) s é6 B ® Security Privacy Communities Builder Flow 2 & Identity Trailblazers & Resk
Slide 17: Salesforce: #1 CRM
Salesforce: #1 CRM Worldwide CRM applications 2019 revenue market share by IDC Source: IDC, Worldwide Semiannual Software Tracker, April 2020. CRM market includes the following IDC-defined functional markets: Sales Force Productivity and Management, Marketing Campaign Management, Customer Service, C
Slide 18: Innovation Drives Growth
Innovation Drives Growth Serving customers with the most complete portfolio of products @®eo0eo0o0qe@eod0 6 Sales Service Marketing eCommerce Communities Collaboration Platform _Integration Industries © Oo Inbox Field Service 0 ® cPQ _ Self Service a) © Engagement High Velocity Bots O @ Sales Servic
Slide 19: Large and Growing Addressable Markets
Large and Growing Addressable Markets > Total Addressable Market growth from CY20-CY24 $180B $120B $60B Integration® Commerce Analytics* Marketing Service Platform & Others Sales CY20-CY24 4YR CAGR?2 @ 13% Total Addressable Market? © 22% 4 11% 19% Calculations performed by Salesforce and graphics cr
Slide 20: Core Values
CORE VALUES TRUS
Slide 21: Continued ESG Leadership
Continued ESG Leadership as Se LY LY LY LY 1-1-1 Model Environmental - Social - Governance BARRON'S. MOST SUSTAINABLE COMPANIES Dow Jones . . Sustainability Indices q Incoltaboration With ses $90M Public education Net-zero Emissions 9 5M+ Hours ~$353MGrants 51K+ Non-profits? GHAI EyNellGEy 100% Rene
Slide 22: Values Attract Top Talent
51,613 Values Attract Top Talent Unmatched scale focused on CRM Headcount Growth Y/Y Q1 FY21 38% ~800 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Q1 FY21 Total Company Headcount 22
Slide 23: Strategic Technology Partners
Strategic Technology Partners Extending the capabilities of the Salesforce Customer 360 23
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Slide 25: Appendix
Appendix 25
Slide 26: Notes on our Financial Results
Notes on our Financial Results Topic 606 Accounting Standards • Salesforce retrospectively adopted new accounting standard Topic 606 on February 1, 2018 (Q1 FY19) • Topic 606 includes changes to accounting policies for revenue recognition and costs capitalized to acquire revenue contracts (primarily
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes information about non-GAAP diluted earnings per share, non-GAAP income from operations, non-GAAP operating margin, free cash flow, and constant currency revenue and constant currency current remaining performance obligation growth rates (collect
Slide 28: GAAP to Non-GAAP Financial Reconciliation
GAAP to Non-GAAP Financial Reconciliation (in millions) Three Months Ended April 30, Non-GAAP income from operations 2018 2019 2020 GAAP income (loss) from operations $ 191 $ 210 $ (140) Plus: Amortization of purchased intangibles 69 129 271 Stock-based expense 252 343 504 Non-GAAP income from opera