Slide 1: Financial Update Q2 FY21
Financial Update Q2 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: Q2 FY21 Results Highlights
Q2 FY21 Results Highlights Durable top-line growth • Revenue of $5.15 Billion, up 29% year-over-year, 29% in constant currency1 • Operating Cash Flow of $0.43 Billion, down 2% year-over-year • Current Remaining Performance Obligation of approximately $15.2 Billion, up 26% year-over-year, 24% in cons
Slide 6: Q2 FY21 Financial Summary
Q2 FY21 Financial Summary GAAP Non-GAAP1 Quarterly Results Increase (Decrease) Y/Y Quarterly Results Increase Y/Y Revenue $5,151M 29% $5,172M 29% Current Remaining Performance Obligation $15.2B 26% N/A 24% Total Remaining Performance Obligation $30.6B 21% N/A N/A 2 Operating Margin 3.5% 200 bps 20.2
Slide 7: Total Quarterly Revenue and Operating Margin
Total Quarterly Revenue and Operating Margin $5,151 17.8% 20.2% 14.3% Q2 FY21 $3,997 Y/Y Growth $3,281 3.5% + 29% / +29% CC 1 1.5% 3.5% Revenue +200 bps GAAP Operating Margin Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q221 +590 bps Quarterly Revenue Operating Margin Non-GAAP Operating Margin 2 Non-GAAP
Slide 8: Q2 FY21 Subscription and Support Revenue by Cloud
Q2 FY21 Subscription and Support Revenue by Cloud Complete portfolio of CRM products +13% Y/Y +20% Y/Y +66% Y/Y +21% Y/Y $1.5B $1.3B $1.3B $1.1B $1.1B $0.9B $0.7B $0.6B Q220 Q221 Q220 Q221 Q220 Q221 Q220 Q221 Sales Cloud Service Cloud Salesforce Marketing Cloud Platform & Other & Commerce Cloud Note
Slide 9: Q2 FY21 Revenue by Region
Q2 FY21 Revenue by Region Incremental investments in international markets driving growth $3,596M $1,070M $485M +28% Y/Y +36% Y/Y +23% Y/Y +28% Y/Y CC1 +38% Y/Y CC1 +23% 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 $30.6B Q2 FY21 $25.3B Y/Y Growth $21.0B $15.4B + 26% / +24% CC 2 $13.2B Current RPO (cRPO) $11.2B + 21% Total RPO $15.2B $12.1B $9.8B Remaining Performance Obligation (RPO) is a metric disclosed with the adoption of Topic 6061
Slide 11: Quarterly Operating Cash Flow
Quarterly Operating Cash Flow Q2 FY21 Y/Y Growth 22% (2)% 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 quarter are our largest collec
Slide 12: Cash, Cash Equivalents, and Marketable Securities
Cash, Cash Equivalents, and Marketable Securities Strengthening Cash Balances Q2 FY21 $9.3B Y/Y Growth 54% $6.0B Total Cash and Marketable Securities Y/Y Growth $3.4B Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q221 Cash Marketable Securities Note: Growth rate based on reported actuals, not the rounded
Slide 13: Business Overview
salesforce Business Overview
Slide 14: 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 15: Salesforce Customer
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 16: Large and Growing Addressable Markets
Large and Growing Addressable Markets > Total Addressable Market growth from CY20-CY24 14% CY20-CY24 $1808 S 1 { 6 B 4YR CAGR?2 Total Addressable Market? © 14% © 20% 411% 21% $120B 17% 8% @ 13% $60B Bh Integration* Commerce Analytics* Marketing Service Platform & Other® Calculations pertormed by Sal
Slide 17: Core Values
CORE VALUES TRUS CUSTOMER S INNOVAT EQUAL
Slide 18: Continued ESG Leadership
Continued ESG Leadership \) 8 8 Environmental - Social - Governance Q2 FY21 ESG Highlights Launched work.com to help our customers reopen safely through COVID-19. Announced $20M Education Grants bringing our total education commitment to $118M. Launched our Racial Equality and Justice Task Force wit
Slide 19: Values Attract Top Talent
Values Attract Top Talent 54,255 Unmatched scale focused on CRM Headcount Growth Y/Y Q2 FY21 34% ~800 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Q2 FY21 Total Company Headcount 19
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Slide 21: Appendix
Appendix 21
Slide 22: 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 23: GAAP to Non-GAAP Financial Reconciliation
GAAP to Non-GAAP Financial Reconciliation (in millions) Three Months Ended July 31, Non-GAAP income from operations 1 2018 2019 2020 GAAP income from operations $ 115 $ 58 $ 178 Plus: Amortization of purchased intangibles 119 127 284 Stock-based expense 351 388 578 Non-GAAP income from operations $